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A new digital marketplace has been announced by the Department for Science, Innovation & Technology (DSIT) with the intention of shaking up how the UK public sector buys technology, including providing access to pre-approved solutions at nationally negotiated prices and using AI to help match buyers to suppliers.
The National Digital Exchange (NDX), which has been in development for over a year, will operate like an app store for public sector tech procurement, providing the opportunity for users to rate and review products they have purchased. It is being developed in a way that is intended to open the market to more UK tech firms, particularly those in the SME community.
As announced in the Blueprint for Modern Digital Government, the government intends to use its scale to unlock greater value in procurement. The paper said that DSIT is working with HM Treasury to take “a new approach to digital funding” in the Spending Review (which takes place on Wednesday). This is intended to drive the “right outcomes, better value, increase agility and reduced risk” and introduce greater focus on realising efficiencies and productivity gains.
The NDX announcement followed last week’s report from the Public Accounts Committee (PAC), which called on the government to better leverage its buying power when dealing with digital technology suppliers.
The PAC report warned that the government lacks sufficient skills to manage the depth and breadth of its digital commercial needs, highlighting the fact it only has 15 people dedicated to the full-time management of technology suppliers. It said the situation was untenable given the pace of digital technological change.
The original Crown Commercial Service (CCS) Digital Marketplace closed in 2023 and was replaced by the Public Procurement Gateway. However, the NDX is doing something different by matching buyers to pre-approved solutions. Whether it will be able to deliver its ambitious aims of unlocking £1.2bn a year in savings and reducing the search for solutions to “a matter of hours, not months” remains to be seen. The issues highlighted by the PAC raise concerns about whether there is currently the capacity within government to populate the marketplace with the breadth and quality of solutions that will be required across the UK public sector.
Posted by: Dale Peters at 10:13
Tags:
procurement
government
digital+marketplace
DSIT
As a prelude to this Wednesday’s Spending Review, the Chancellor Rachel Reeves has announced the UK government will invest £86bn in science and technology research and innovation. The funding, which is expected to rise to more than £22.5bn a year in 2029-30, will focus on what the government calls “the people’s priorities” of health, security and the economy.
Although the announcement lacks detail (we will have to wait a couple more days for that) it does state that £500m will be invested in regional development, with local leaders playing a role in decision making. This new Local Innovation Partnerships Fund is intended to help develop innovation clusters across the country.
Each of the seven established mayoral strategic authorities in England (Greater Manchester, West Midlands, South Yorkshire, West Yorkshire, Liverpool City Region, North East, and Greater London) will receive grants of at least £30m to support research and innovation in their region. An comparable region in Scotland, Wales and Northern Ireland will also receive an equivalent grant and additional funds will be open to all other parts of the UK via competition.
As place and innovation form key pillars in the government’s plans to kickstart economic growth, we can expect further news about regional science and technology investment on Wednesday. TechMarketView will be providing full coverage of the Spending Review and its impact on technology suppliers later this week.
Posted by: Dale Peters at 09:26
Tags:
investment
research
government
innovation
budget
R&D
spending+review
UK government ministers have pushed back proposals to legislate AI by at least a year, abandoning plans for swift regulatory action in favour of a larger bill that addresses both safety concerns and copyright disputes. Technology Secretary Peter Kyle confirmed he intends to introduce a "comprehensive" AI bill during the next parliamentary session, which could delay implementation until May 2026. The move represents a significant shift from Labour's original strategy of introducing narrow, targeted legislation within months of taking office.
The government had initially planned a short bill focused specifically on large language models like ChatGPT, requiring companies to submit their systems for testing by the UK's AI Security (previously Safety) Institute. This approach was designed to address existential risks from advanced AI models that could potentially threaten humanity. However, ministers chose to delay implementation to align with Donald Trump's administration, amid concerns that regulation might damage the UK's appeal to AI companies, whilst more scrutiny of US firms could impact broader relations with the US government.
The broadened scope also stems largely from fierce opposition to the government's AI copyright proposals (See - What is the future of creative content?). Ministers now plan to incorporate copyright rules directly into AI-specific laws. The House of Lords has mounted sustained resistance to proposals allowing AI companies to train models using copyrighted material unless rights holders explicitly opt out. Peers backed an amendment to the data bill that would require AI companies to disclose if they were using copyrighted material to train their models, in an attempt to enforce current copyright law. However, the government insists the data bill is not the right vehicle for the copyright issue and has promised to publish an economic impact assessment and series of technical reports on copyright and AI issues.
The UK government is essentially pushing the issue down the road, by which point AI technology may well have moved on so much that any current regulatory approaches will need to be re-written or will be too late to matter. It is attempting to avoid overly aggressive regulation that could harm innovation, but inaction may prove just as harmful. That said, I think trying to control innovation or the use of AI through regulation is a difficult prospect, just as getting LLM suppliers to disclose all their sources will be.
Posted by: Simon Baxter at 09:24
The Department for Work and Pensions has awarded a five-year £265m contract for its Digital Channels Contact Centre (DC3) modernisation programme, representing one of the UK's largest government CX transformations. The deal signed with Bristol-headquartered minnow Route101 includes two optional one-year extensions and covers migration from the current platform to a cloud-hosted solution with enhanced capabilities, including softphone technology, workforce optimisation, webchat, and intelligent voice routing.
The contract value comprises £168.8m for core services over the initial term plus extensions, and £52.3m for optional services and anticipated changes. This modernisation addresses DWP's strategic goal of transforming citizen services while achieving cost efficiencies across Europe's largest government contact centre operation. If successful, the cloud-first approach with integrated CRM capabilities should help position DWP for improved service delivery and operational scalability in the digital government services landscape.
In many ways the most interesting component of the deal is the winner, Route101, a firm that I must confess to knowing nothing about prior to the announcement and not one that TechMarketView has covered to date. A quite flick through their most recent accounts on Companies House shows the firm made Net Profit of £2.6m on turnover of just £21.3m for the year ending 31st August 2024. As such this looks like a big step up for the firm that among other things is a Microsoft and Zendesk CRM managed services partner, and a lot of faith being put in a UK headquartered SME by DWP.
Posted by: Marc Hardwick at 08:59
Tags:
contract
CX
Stockholm-HQ’d digital SI, Netlight is set for a UK re-launch in the autumn. The firm’s soon to open new London premises will add to its current tally of twelve offices in Continental Europe and North America. Describing itself as “transforming ideas into reality in the digital landscape”, Netlight is hoping that its expertise in digitalisation will help it carve out a space in one of the world’s most dynamic IT services markets.
Founded in 1999, the Swedish company now generates c.£200m in annual revenue and employs some 2000 personnel in operations across Scandinavia, Germany, Switzerland, the Netherlands and Canada. Netlight’s services range from strategy to implementation and its 350+ clients span the public and private sector domains.
The firm’s first foray into the UK began at the start of the millennium but appears to have largely petered out some six years later. Returning in a few months with “renewed focus”, the Swedish service provider will be met by an intensely competitive market that continues to face stiff trading headwinds. The digital SI believes, however, that its abilities to combine “contemporary technology with a collaborative and inclusive approach to business transformation” will help it make a mark in this country. We will watch for Netlight’s progress here with interest.
Posted by: Duncan Aitchison at 08:42
Tags:
digital
IT+services
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Posted by: UKHotViews Editor at 10:10
Capgemini has announced that it has become the Official Technology Partner, for the next 5 years, of 14 major international men’s and women’s cycling races. These include the Tour de France which in 2024 reached more than 1 billion TV viewed hours in 190 countries and broke digital records with nearly 100 million website visits and 1.6 billion impressions on social media.
The collaboration will seek to leverage technology, innovation and artificial intelligence (AI) to grow the cycling community and increase fan engagement. Over the next five years, Capgemini will support these top cycling events, which also include La Vuelta and the Paris-Roubaix, in the deployment of technological solutions aimed at both enhancing performance insights and supporting international audiences.
Capgemini has a busy few months ahead on the on the sports sponsorship front. The company is a Principal Partner of Women’s Rugby World Cup 2025, set to kick off in the UK in August. Capgemini is also currently a Worldwide Partner to the Ryder Cup. For the next tournament in September, the firm will provide a generative AI powered version of its Outcome IQ, a tool that provides real-time shot-by-shot analyses of both how well the golfers are playing and their respective probabilities of success to fans’ mobile devices.
Posted by: Duncan Aitchison at 09:57
Tags:
AI
sponsorship
sports
Following a £6m development investment in FY24, and a similar level this year, RM has announced the official launch of RM Ava, its adaptive virtual accreditation platform (formerly known as the “Global Accreditation Platform”).
Ava brings together RM’s existing assessment tools into a single cloud-based platform. It's designed to help customers bring their paper-based learning and assessment processes into the digital age – supporting the full assessment lifecycle (from content creation and learner testing, through to optional AI-powered marking and feedback).
RM is also planning to use Ava to extend its product offering into formative in-course assessments in Further Education and professional qualifications.
The company has been focused on a strategy to build what it had been terming a “Global Accreditation Platform” for some time – bolstered by recent successes, such as securing a long-term partnership with The International Baccalaureate in May last year, extending its longstanding Cambridge University Press & Assessment partnership in November, inking deals with the Institute of Chartered Accountants in Ghana and the teacher training university Pädagogische Hochschule St. Gallen (and its partner institutions) in Switzerland at the end of last year, and signing a contract with (long-term partner) the International Association for the Evaluation of Educational Achievement to provide the digital platform to support the next iteration of the Trends in International Mathematics and Science Study – plus a long-term extension of its contract with the South Australian Certificate of Education Board – both last month.
Looking ahead, RM is expecting many further opportunities for its end-to-end digital authoring, accreditations, and exams solution as governments, education institutions and membership organisations accelerate their plans to move away from paper-based assessment. The company’s Assessment division was the star player in FY24 – with a contracted order book more than doubling in size to £95.7m – and it will be looking to Ava to continue to provide a (literal) platform for growth, as RM continues to transform its operations following the closure of its Consortium business in December 2023.
Posted by: Craig Wentworth at 09:54
Tags:
platform
assessment
launch
accreditation
Kyndryl has expanded its relationship with Kantar, the marketing data and analytics business.
Under a new agreement, Kyndryl will focus on modernising Kantar’s digital workplace, helping to transform the experience for employees but also create “significant” cost savings. With Kyndryl Consult, the firm will take an “engineering-led” approach to design and manage Kantar’s transformation across cloud, digital workplace, network and business applications. Automation will be infused, particularly in the guise of self-help tools so IT issues can be resolved faster.
Dave Stevens, Kantar's CIO, said that working with Kyndryl had been “…vital in helping us transition to a more flexible, automated, digital workplace...”.
Kantar works with 96 of the world’s largest advertisers. A recent example includes its engagement with Nestle to fine-tune a KitKat marketing campaign on the back of rapidly delivered insights.
Kyndryl delivered a solid set of scores in the most recently completed Market Readiness Index: The Road to AI Part 2.
Posted by: Kate Hanaghan at 09:50
Tags:
contract
digitalworkplace
After ten months in development, PwC UK has opened the doors on its new AI and technology innovation unit, Tech Catalyst. Described by the firm as bringing together human centric design and technical capabilities in AI, cloud, data and software engineering, the facility aims to fast-track technology, AI, and data-driven transformation for both its clients and its own service delivery. Tech Catalyst also contains an emerging tech research function to help clients assess the opportunities of new technologies.
The establishment of the innovation hub marks a continuation of the firm’s investment into the AI arena. Since 2002, PwC has spent some $1bn globally on expanding its AI capabilities. Two years ago, the UK arm of the firm announced its plan to pump £100m into emerging tech (see here). These initiatives have been bearing fruit. TMV’s latest AI Market Readiness Index report identified PwC as a member of the Leading Pack of suppliers in this UK services domain (see here).
From an IT services revenue growth perspective, however, it is likely that to be the firm’s Gen AI related success will have been coming largely at the expense of sales of more traditional lines of business. Times have been proving tougher for the Big Four in the consulting arena over the last couple years. News surfaced this week, for example, that Deloitte UK’s Technology & Transformation division has fallen materially short of its FY25 performance goals (see here).
Posted by: Duncan Aitchison at 09:49
Tags:
innovation
AI
big+4
Edinburgh-based legal technology startup Wordsmith AI has raised $25m in a Series A funding round. Its GenAI-led solution helps in-house legal teams service contract reviews, create template drafts and provide policy guidance. This latest round of funding brings the startups valuation to above $100m, making it one of the fastest-growing tech startups to emerge from Scotland’s tech ecosystem.
Wordsmith was founded in 2023, and already counts firms such as Trustpilot, Remote.com, Deliveroo, Multiverse, and Docplanner among its customer base. To support its growth Wordsmith plans to open new offices in London and New York later this year. The company’s platform helps in-house business legal teams automate contract and policy reviews with the productivity tools they have and extract legal insights from past work.
It does this by applying agentic AI and a chatbot that can answer questions or work within Microsoft Word via a plugin. Legal professionals can quickly and easily take a contract or policy document and pass it over to Wordsmith’s AI agent which will process it for review. The AI will adapt to the businesses’ custom playbook, risks and negotiation style, to highlight deviations and note them for review so that legal can update them in the document. The document review process can handle a multitude of agreement types out-of-the-box, including non-disclosure agreements, data processing agreements, software-as-a-service agreements, terms of service and recruitment services agreements, with more coming soon.
The market for legal tech remains highly crowded, established players and law firms of all sizes are rapidly incorporating AI capabilities, and this has spawned numerous startups looking to capitalise. Others who have raised funding in the past 6 months include; Atria AI which is focused on the often overlooked area of deadline and obligation management (See here), Semeris, who is targeting legal documents in the capital markets industry (See here) and Luminance, who has developed its own legal Large Language Model (LLM) (See here).
Beyond these there are numerous others, both startups and more established legal tech firms including; Robin AI (See - Robin AI raises $26m in new funding round), London based Genie AI (see - Legal AI tech startup Genie AI raises £13.3m), and heavy hitters like global legal solutions firm LexisNexis, who has also developed its own AI based legal solution. This is a hot market and one we will be going into deeper later this year, so stay tuned.
Posted by: Simon Baxter at 09:24
Tags:
legaltech
FY24 results out this morning from Cambridge-based e-commerce platform provider Bango, appear to validate its move toward subscription bundling infrastructure, with its Digital Vending Machine (DVM) platform gaining ground among major telcos whilst cost management drives improving profitability—positioning the company well to capitalise on a structural shift toward indirect content distribution.
Bango reported strong FY24 results with 16% revenue growth to $53.4m and 139% adjusted EBITDA improvement to $15.3m, as its DVM platform scales. The standout metric was 59% ARR growth to $14.0m, reflecting the subscription bundling platform's increasing market penetration.
The DVM business added nine new customers in 2024, with post-period momentum accelerating including six new wins in 2025 with a breakthrough South Korean telco and expanded US presence where it serves six of the top eight communication providers. This positions Bango at the centre of the "super bundling" trend as content providers increasingly rely on indirect distribution.
However, challenges remain in its Payments division, where DOCOMO Digital integration issues created volatility in high-cost routes, though core transactional revenue performed in-line with expectations.
The secured financing ($15m from NatWest) should provide balance sheet flexibility while efficiency initiatives target modest EBITDA improvements. Bango appears well-positioned for the subscription economy's structural growth, with platform scalability offering significant potential as customer adoption accelerates.
Posted by: Marc Hardwick at 09:18
Tags:
results
ecommerce
telco
Business Process player Genpact has been benefiting of late from its data, tech and AI pivot (see Genpact FY benefits from Q4 AI-driven uplift), looking to further boost its capabilities in this space with yesterday’s acquisition of XponentL Data for an undisclosed sum.
The deal should help accelerate the firms AI-first transformation, targeting the rapidly expanding enterprise data intelligence market. Crucially, the acquisition brings with it domain-specific AI solutions and should help strengthen Genpact's partnerships with leading cloud platforms including AWS, Microsoft, and notably Databricks.
XponentL's differentiation lies in its industry-specific AI implementations, particularly in Life Sciences and Healthcare, complementing Genpact's process expertise with technical capabilities. The company's track record in "intelligent agents and modern data architectures" aligns with the emerging agentic AI trend that Genpact is positioning around.
This acquisition bolsters Genpact's "AI Gigafactory" concept and Service-as-Agentic-Solutions offering, demonstrating management's commitment to moving beyond traditional BPO services toward higher-value AI transformation consulting. The strategic timing capitalises on clients’ accelerating their demand for AI implementation expertise beyond basic automation.
For Genpact, the deal addresses a gap in technical AI delivery capabilities while building on its existing client relationships and domain knowledge. XponentL's Pennsylvania headquarters and global operations provide further geographic diversification and access to specialised talent.
Posted by: Marc Hardwick at 08:22
Tags:
acquisition
bps
AI
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Posted by: TechMarketView Team at 07:00
Tags:
maintenance
notice
London-based construction tech startup Auar (also known as Automated Architecture) has raised £5.1m in a funding round led by Planet A, with participation from Shadow Ventures, Common Magic, Concrete VC, and angel investors. Previous backers Miles Ahead, ABB Robotics Ventures, and Nicolas Bearelle (founder and executive chairman of Revive, a real estate developer and investor specialising in urban regeneration) also participated.
Founded in 2019 by Mollie Claypool (CEO) and Gilles Retsin (CTO), Auar has developed a platform combining robotic micro-factories with AI-powered design software to automate timber housing construction. The company's decentralised approach allows builders to rent compact, mobile micro-factories that can produce the full timber structure of a home in under 12 hours, reducing on-site labour by up to 75% and cutting construction costs by 30-40%.
What sets Auar apart is its focus on democratising sustainable construction. Rather than requiring massive capital investment in centralised factories, builders can deploy Auar's micro-factories on-site or nearby, typically seeing a return on their investment in under six months. The platform makes Passivhaus-standard, carbon-negative homes economically viable at scale – addressing both the housing crisis and climate imperatives simultaneously.
The company has established partnerships with builders including Rival Holdings in the US and Vandenbussche NV in Belgium, and also received an Innovate UK grant (of £341k) late last year to scale its platform for mid-rise (6-storey) timber housing. The £5.1m of new funding will accelerate Auar's expansion across key European markets including Benelux, DACH, and the Nordics, while growing its team and partner ecosystem.
According to the latest (2024) Global Status Report for Buildings and Construction from the UN Environment Programme (UNEP), the buildings and construction sector accounts for around 21% of global greenhouse gas emissions – with UNEP stating that the sector needed to show an annual increase of ten “decarbonisation points” (representing specific measures and actions taken to reduce emissions) – up from the six points per year anticipated in 2015, when the Paris Agreement was signed – in order to reach its goals of net-zero carbon emission buildings for new buildings by 2030.
By that year too, however. Auar aims to have facilitated the construction of over 100,000 carbon-negative homes – a significant contribution to addressing both housing shortages, and the construction industry’s environmental impact.
Posted by: Craig Wentworth at 10:14
Tags:
funding
robotics
construction
housing
sustainable housing
micro-factories
Omni Partners has added Council Tax and fraud prevention specialists Datatank to its rapidly expanding govtech software offering. The deal is part of Omni’s buy-and-build strategy, which launched with the acquisition of Infoshare+ in October 2024 (see Omni acquires Infoshare to drive public sector expansion). Financial terms have not been disclosed.
Datatank has been helping local authorities detect fraudulent single person discount claims on Council Tax bills for over 20 years. The company now works with more than 160 councils across the UK, providing a managed Council Tax review service and the data analysis tools to identify potential cases of fraud. Datatank also provides a range of other solutions including empty homes, tenancy and probate reviews, as well as case management solutions.
The deal is the fourth acquisition Omni has made to bolster Infoshare+. It follows the purchase of local government digital solutions provider Looking Local in January 2025 (see Omni Partners adds Looking Local to growing govtech platform) and expands the company’s public sector-focused data solutions and software platform.
Given the financial challenges facing the local government sector, tackling the threat of fraud and recovering losses has become a vital part of council operations. The need to operate more efficiently and maximise revenue is not going to go away and is likely to be high on the agenda of council leadership following the Spending Review later this month.
Databank represents a strong addition to the Infoshare+ stable, providing the company with a demonstrable solution for protecting council finances and supporting the delivery of frontline services.
Posted by: Dale Peters at 10:08
Tags:
acquisition
fraud
tax
local+government
council
A £1 million project is underway to test the safety and effectiveness of artificial intelligence in the Scottish NHS. Funded by Innovate UK, the scheme involves collaboration between NHS Greater Glasgow and Clyde, NHS Lothian, and AI evaluation company Aival, to create a validation framework for AI tools.
Aival’s independent evaluation platform will be used to assess AI systems for diagnosing head trauma and lung cancer, aiming to improve care for patients and support NHS staff. The platform allows hospitals to verify AI performance using anonymised patient data and provides ongoing monitoring once the software is deployed.
The project will also test the Aival platform’s ability to monitor long-term AI performance, addressing concerns about ‘drift’—the decline in software accuracy over time due to changes in patient populations, disease trends, or equipment updates.
Dr Mark Hall, consultant radiologist at NHS Greater Glasgow and Clyde, said: "Post-deployment surveillance monitoring is a critical yet often overlooked aspect of patient care, especially in radiology, where early detection of disease progression can make all the difference. Despite its importance, there are currently no standardised guidelines. AI-powered monitoring software bridges this gap by providing a structured approach”
One of the challenges addressed by the project is the lengthy testing process for AI. Currently, it can take more than nine months to evaluate a single product, and there are more than 200 AI options available for some hospital departments. This has limited the rollout of AI solutions in clinical settings. The project will compare six commercial AI products used in stroke and lung cancer triage, including tools developed by InferVision, Annalise-AI, and Qure.AI.
AI has tremendous potential to improve patient care in healthcare, and we have already seen it applied in numerous use cases from taking patient notes to aiding consultations and suggesting treatment diagnosis. The key barrier, as with the application of AI in any heavily regulated industry, is trust and confidence that the systems will behave as expected and are safe to use. Both are key aspects this project will seek to test and which may well help establish important benchmarks for other healthcare organisations.
Posted by: Simon Baxter at 09:55
Tags:
healthcare
Healthtech startup HealthKey, the marketplace platform focused on improving access to preventative health services, has acquired Syndi Health.
Syndi Health is a personalised health assessment and recommendation platform. The new combined entity brings together HealthKey's due diligence and marketplace capabilities with Syndi Health's patented and medically approved clinical assessment technology. This will provide users with tailored guidance on health services. David Joerring, CEO of HealthKey, said: "We have both been focused on supporting people with better access to healthcare through technology, making preventative care more personalised and affordable."
Syndi Health was founded in 2020 by Ben Lakey and Jorge Alexander. Lakey becomes HealthKey's Director of Operations.
Joerring founded HealthKey with Tudor Cotop in 2022 with the intention of making it easier for people to access the ever-expanding range of digital healthcare providers. In April of last year, the firm secured £1.13m in a seed round led by Aviva Ventures, with participation from Ascension, Oxford Capital, and Cur8 Capital. Those funds have clearly been put to good use.
Posted by: Kate Hanaghan at 09:53
Tags:
healthtech
Please join me in congratulating Craig Wentworth on his promotion to Research Director.
Readers of UKHotViews and members of our subscription and advisory services will be familiar with Craig’s work, which spans the SustainabilityViews and PublicSectorViews research programmes. In the latter, he is our research lead for Education, Local Government, and Social Value.
In particular, Craig has built a rich body of research examining the intersection of technology and sustainability. He is the master of ‘joining the dots’ and deciphering swathes of data to explain the trends and emerging opportunities. Craig produces creative outputs that inform and inspire (check out his latest podcasts below*), giving our clients the detail and confidence they need to edge ahead of the competition.
Craig joined TechMarketView around two years ago, and he works with the rest of the analyst team in producing research that is founded on high-quality and unique data sets. Today, he is launching his latest report: Sustainability Technology Activity Index 2025 – The global view, available only for members of SustainabilityViews clients.
Craig says: “The Sustainability Technology Activity Index lies at the heart of our SustainabilityViews research, delivering essential market intelligence for suppliers and tech users navigating the rapidly evolving sustainability tech landscape. By tracking the sustainability activities of over 2,000 companies worldwide, our detailed analysis of market trends across multiple industries reveals where the immediate commercial opportunities are and which sectors require longer-term investment.
Customers are using the Index to identify the high-growth use case areas and where the suppliers are focusing their efforts (and with whom). I am typically working with our clients on projects that leverage the Index’s rich data and unique analysis, including the identification of partnership and M&A opportunities.”
If you would like to bring Craig into your strategic thinking around sustainability or appear on one of his podcasts, you can contact him here.
*
Totally Sust #12: Decarbonising pharma
Totally Sust #11: Scaling soil carbon markets
Totally Sust #10: Pairing sustainability with profitability
Posted by: Kate Hanaghan at 09:30
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