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In her keynote address at the 40th annual BETT EdTech event yesterday, Education Secretary Bridget Phillipson outlined plans for “a digital revolution in schools”.
On the back of the government’s vision for extensive, AI-fuelled digital transformation across the Public Sector (see A Blueprint for a Modern Digital Government), Phillipson announced a suite of initiatives aimed at modernising Britain’s schools; again, with AI touted centre-stage as the solution to persistent challenges around teacher workload.
Alongside namechecks for the DfE’s recently-launched ‘Plan Technology for your School’ digital service (helping schools decide what tech to buy and how to use it well), and the ‘Connect the Classroom” scheme to WiFi-enable classrooms, Phillipson once again promoted AI as one of the means by which teachers are “set free” – making particular mention of the £1m investment in AI-powered marking and feedback tools announced last year (see Government announces £4m project for AI in schools), alongside the expansion of Oak National Academy's AI lesson planning assistant (see Oak National Academy gets £2m to develop AI tools for teachers).
While these initiatives signal a clear commitment to developing AI tools targeted at key education sector problems, the funding remains modest (and mention of the 16 developers awarded £1m between them to work on those marking and feedback tools is simply a progress update on the call which went out in September). So… nothing essentially new in that area, beyond a commitment for her department to “update [its] policy position of AI [to] give schools and colleges clarity and encouragement”.
Data did feature in the speech too – though not in the context of overhauling the plumbing to set the groundwork for more effective AI (as we’ve long argued, see UK Education Suppliers, Trends & Forecasts 2024 and UK Public Sector Predictions 2025); rather to promote the ‘View Your Education’ data tool, designed to give schools, trusts and local authorities additional insight on attendance to help them “turn the tide on absence”.
As with the wider digital Public Sector blueprint announced yesterday, there’s the clear message that AI and digital tech at large is crucial to the government’s plans for improving productivity and efficiency across the sector… though real (new) money and detail still remains in short supply.
Posted by: Craig Wentworth at 10:05
Tags: funding schools productivity teachers workload tools feedback & assessment classroom
Digital mental health business, Kooth plc, has announced that CEO Tim Barker will be stepping down in June. He joined the business in January 2020, overseeing the company’s listing on the AIM market and its expansion into the US.
Barker will be succeeded by Kate Newhouse, who joined the business as COO in May 2020. She was previously CEO of Blenheim Chalcot and Doctor Care Anywhere. In the intervening period, Newhouse will work alongside Barker as joint CEO.
Today’s statement also provides an update on trading. Revenue for the year ended 31st December 2024 is expected to be £65.8m (2023: £33.3m), which is in line with market expectations. Adjusted EBITDA is expected to be £12.7m (2023: £2.3m) and its unaudited cash position has grown to £21.5m (2023: £11.0m).
Growth has been largely driven by Kooth’s US operations, particularly its contract with the California Department of Health Care Services. US revenue increased from £1.8m in H1 2023 to £23.3m in H1 2024, representing 72% of total revenue for the period (see Kooth revenue soars following US expansion).
Kooth’s reliance on its California contract also leaves the business vulnerable. In October 2024, an article in the California Healthline publication regarding uptake of the service in the state (which Kooth says was based on outdated information) and conflict of interest allegations contributed to a 50% drop in its share price.
The company also announced in October 2024, that it had received communication from the State of Pennsylvania (where it is running a pilot study) exercising its right to terminate the contract. In more positive news, the company recently agreed terms on a new pilot contract with the State of New Jersey valued at $1.45m and negotiations are ongoing regarding another pilot contract in the US.
With these challenges in the US and its struggles for growth in the UK (despite being NHS England's largest single access provider for mental health support for under 18s), it’s clear Newhouse has some challenges to address in her new role.
Posted by: Dale Peters at 09:43
Tags: nhs health USA healthcare healthtech mental+health trading+update
Mid-tier offshore service provider, Coforge picked up the pace of its accelerated growth still further in the third quarter of FY25. At a headline level, revenue for the three months need 31st December increased at constant currency by just over 40% yoy (Q225: 33%) to just shy of $400m.
The top line jump was, as in the prior quarter, fuelled by the completion of the $220m Cigniti Technologies acquisition in July. On an organic basis, the firm’s Q3 turnover was up by almost two fifths yoy. This significantly outstripped both Coforge's strong second quarter performance (Q225: 11.4%) and the rates of expansion currently being achieved the company’s larger rivals. Adjusted EBITDA margin improved sequentially by 122 bps to 17.8%, bringing the metric back close to the Q324 level.
The impact of the Cigniti buy was most marked on its new onwer’s America’s business with Q3 sales in the region surging by over 70% yoy to $222m. Revenue for the period in Coforge Europe increased less rapidly, albeit at a brisk 22% yoy to $135m.
No forward guidance was provided. An order intake of $500+m for a second consecutive quarter, however, has given Coforge an executable order book for the next twelve months of $1.37bn, up 40% on start of 2024. Unsurprisingly, CEO Sudhir Singh is confident that the coming year will see robust and sustained growth.
Posted by: Duncan Aitchison at 09:23
Tags: results offshore IT+services
There’s a new crew in town. Belgian-HQ’ed Brayton Global is positioning to make a splash in the UK Public Sector market.
Eight months ago, they started testing the waters; Frederic De Boom, CEO, and Maria Antonela Santilli, COO, visited our shores to begin forming a market entry strategy. Helping them solidify a plan are strategic advisors, Lee Nicholson-Gates, of Brayton Global (who has previously held senior positions in Serco and Liberata), and John Jones, MD of Landseer Partners (long-time friend of TechMarketView, and a shareholder in Brayton Global UK).
Brayton Global has revenues of c£20m globally, having delivered a CAGR of c.35% over the last five years. The majority (about 80%) of revenues stem from its homeland. However, the company has already proven its ability to land and expand in new geographies; it now derives c.15% of revenues from Luxembourg, with Italy growing from a small base (and likely to represent 10% of the total by the end of this year), and France described as “fledgling”. As the company grows, it is extending its leadership team, taking on a new CFO last year, and a new CTO due to start shortly; it is also adding a couple of business development-focused non-execs.
Brayton’s portfolio is very much services-based comprising resource augmentation and managed services (including remote service desk, field services, and digital workplace services), alongside advisory services and implementation in Digital and AI. But, as is often the case, Brayton sees its competitive differentiation in its people (entrepreneurial and 70% female), and in its delivery (agile and able to deliver results at speed). It gives one example of a project undertaken with the European Commission to deliver a new service desk in response to COVID-19 demand; Brayton mobilised 20 people within a few days of the request.
The team has made some initial steps in the UK, including securing a position the G-Cloud 14 framework, giving public sector organisations a procurement channel for a variety of its advisory and implementation services. The team is also deep in conversation with several potential large systems integrator partners. It enters the UK Public Sector market at a tough time, as budgetary pressures loom, uncertainty around core policies and strategies persists, and stretched resources make digital progress challenging. But, it is also a period that, in line with our 2025 TechMarketView Research Theme, Sink or Sprint, demands that public sector organisations up the pace. Brayton Global has a chance to position as a company that can help that acceleration.
Posted by: Georgina O'Toole at 09:06
Tags: suppliers public+sector IT+services
Open banking payments and data services provider, The Smart Request Company (trading as Ordo) has been acquired by the Neomics Group (part of Norway’s Fintech AS). Founded by Christoffer Andvig in 2017, Neonomics works with businesses across Europe, and (like Ordo) is focused on open banking and payments. The Nordic fintech, has acquired 100% ownership in a transaction that has been fully ratified by both the UK FCA and Norwegian FSA.
Established by former members of the UK’s Faster Payments scheme, Ordo’s CEO is Craig Tillotson, who was CEO of Faster Payments between 2014 and 2018. Ordo is an FCA authorised open banking payments innovator and one of the very first to be licensed as such in the UK. Ordo provides a variety of payment-related services including, variable recurring payments. The fintech partners with a number of leading technology vendors and financial services organisations (see: A new approach to regular recurring payments).
The Ordo team represents some of the most experienced payments specialist in the UK. As a result, the acquisition will help Neonomics to accelerate its growth and will expand its capabilities and footprint both in the UK and beyond. Ordo’s pioneering UK payment propositions and its deep vertical domain expertise make them an impressive addition to the Neonomics team and their vision for a more open and connected economy. Both the UK and EU have witnessed a surge in account-to-account payments adoption, off the back of open banking, a product of the EU’s Payment Service Directive(s). The forthcoming Payments Services Regulation (PSR) alongside PSD3, is set to further fuel the shift to more cost efficient, legacy-free payments and data services.
Fliss Berridge co-founder and Managing Director of Ordo stated: “We are proud to join forces with one of the most well positioned independent open banking providers in Europe, to jointly scale our offering to both existing and new customers across the UK and Europe. The two teams bring a wealth of experience in developing tailored solutions in a complex and highly regulated environment at what we believe will be among the industry´s most competitive commercial terms.”
Posted by: Jon C Davies at 09:00
Tags: M&A acquisitions
Schools MIS supplier Arbor (part of The Key Group since 2020 – see The Key acquires Arbor Education) has acquired Habitude – a process and work automation platform targeted at Multi-Academy Trusts (MATs).
Habitude is designed to give central teams at trusts an education-specific workflow builder, covering use cases such as new staff onboarding, managing student admissions, approving expenses, and pulling together information for Education, Health and Care Plan reviews.
Founded in 2022, Habitude is the third recent addition to the Arbor School Management Suite (which includes Arbor MIS and Arbor Finance), joining SAMpeople – specialist education HR software, acquired in July 2024; and TimeTabler – acquired in May 2024. Initially, Habitude will remain a separate system which MATs can choose to buy into or not – though Arbor has plans to bring Habitude workflow functionality into both its School MIS and MAT MIS to extend their automation capabilities.
According to recent FOI data, Arbor’s share of the English schools market has climbed to 30%, with the company winning 76% of schools that switch. The Key Group as a whole (a Top 10 Education SITS supplier – see UK Education Suppliers, Trends & Forecasts 2024 – that encompasses Arbor, Integris, and ScholarPack) is now just 1% behind market leader SIMS, whose share of the market has fallen from north of 70% of English schools (pre-acquisition by ParentPay in 2020) to 44% now.
Posted by: Craig Wentworth at 08:42
Tags: acquisition workflow schools MIS
Positive H1 trading update out this morning from intelligent automation and customer engagement software provider, Netcall points to a continuing strong performance, building on last year’s growth (Netcall heads towards double-digit territory). Netcall is expected to deliver revenue growth of 22% (to £23m) in a strong H1 FY25, that combines 12% organic growth with the revenue contribution from its recent acquisitions (Skore, Govtech, and Parble). The company's pivot toward cloud services continues to gain momentum, with cloud ACV growing 47% to £29.9m (20% organic), now representing 76% of total ACV of £39.4m. Adjusted EBITDA grew 18% to £5.7m, reflecting continued profitability while investing in cloud capabilities.
Netcall is positioned as a niche player in the business process automation and customer engagement space, with a strong focus on specific industries - notably targeting complex, regulated industries with labour-intensive processes such as healthcare, local government, and financial services. The company's strategic focus on AI integration and automation capabilities looks like it is yielding results, particularly evident in the uptake of its Liberty cloud contact center solution, Converse CX. Notably, two-thirds of Converse CX customers are now adopting AI products, indicating market validation of Netcall's integrated approach.
Looking ahead, Netcall appears well-positioned for continued growth with a strong pipeline and expanding recurring revenue base. The company will announce interim results on March 5th when we will report more.
Posted by: Marc Hardwick at 08:31
Tags: software CX trading update
Posted by: HotViews Editor at 07:00
The government’s approaches to leadership, structure, measurement, talent and funding do not do justice to the potential of digital technology. This is the conclusion of the State of Digital Government Review, commissioned by the Department for Science, Innovation and Technology (DSIT), that highlights how, despite some notable successes, the public sector continues to be held back by legacy technology, outdated processes, and resource shortages.
In response to these findings, the government has published a Blueprint for a Modern Digital Government, setting out its vision for the future and its plan to get there. It includes further detail about how the government is targeting AI as a game changer for improving access to public services and boosting productivity across the civil service. Today, TechMarketView has published two reports on these publications.
The first provides a summary of the State of Digital Government Review, looks at its influence on the Blueprint for a Modern Digital Government, and discusses its likely impact on the public sector and its technology suppliers.
The second takes a deep dive into the role of AI in the Blueprint, looking at progress to date, the need for further investment in data foundations and security, and the impact this will have on industry.
These reports are available to PublicSectorViews subscribers now
The State of Digital Government and a Blueprint for Change Plans and Progress of UK Government AI Adoption
If you are not yet a subscriber, or are unsure if your organisation has a corporate subscription, please contact Belinda Tewson to find out more.
Posted by: Dale Peters at 10:34
Tags: strategy government digital transformation AI data public+sector
DXC Technology has contracted with the Ministry of Defence (MOD) to provide end-user services in the SECRET domain. The aim will be to improve and enhance user experience in the domain. The contract is valued at £76m and will run for four years, ending in December 2029.
Most readers will be well aware of DXC’s long-running relationship with MOD, spanning several decades, including its role as prime contractor of the Atlas Consortium leading the Defence Information Infrastructure (Future) programme. As the Ministry of Defence has sought to disaggregate that arrangement, other suppliers have taken some of the pie, including Computacenter, which won a £150m, four-year, deal in January 2024 to support 220,000 devices used by personnel globally.
Despite the disaggregation, DXC continues to run many elements of its legacy contract, as the MOD struggles to transition. As a result, we estimate DXC continues to earn about two-thirds of its UK Defence revenues from Defence Digital-led contracts (with the rest coming from the wider Defence enterprise). This latest win underlines how DXC, having had something of a rocky past with the MOD over the years, has, with a clear focus on delivery excellence, succeeded in turning the relationship around. The new deal also expands DXC’s footprint in the high-secure space (where other clients include AWE, for example), demonstrating a high level of trust in DXC as an organisation.
Posted by: Georgina O'Toole at 09:54
Tags: contract defence enduser infrastructureservices public sector
Wrexham County Borough Council has awarded a contract to Capita for a cloud-hosted housing management system to help manage its property portfolio (including its 11,000 council-owned dwellings, leasehold properties, properties used for homelessness, garages and garage plots, offices and shops). News comes after contract wins for Capita outside its public sector business in December (see Christmas comes early at Capita).
The council’s requirement is for a “fully integrated total housing solution”, with extensive self-serve and mobile functionality that creates a single view of a person/property record. It will replace the current system, which sprawls multiple Access databases, Excel documents, and relies on paper processing as well as core software – resulting in inefficient services that persist with double handling of information. Wrexham aims to use the new system not only to improve services, but also to improve its property investment decision-making processes.
According to the published award notice, the 5+2+2 year deal is worth between £1m and £4m (precise figures have not been disclosed at this point).
Posted by: Craig Wentworth at 09:29
Tags: housing contract award efficiencies
The University of Surrey has been selected to develop a sign language artificial intelligence (AI) model for the deaf community. Awarded by the by UK Engineering & Physical Sciences Research Council, the five-year, £8.45m SignGPT project will build tools to allow spoken language to be translated into photo-realistic sign language and sign language video into spoken language.
The work will be led by the university's Surrey Institute for People-Centred AI with which TechMarketView has partnered since 2022 to help bridge the research gap between academia and industry (see here). The initiative aims to create a large language model comparable to those already available for written/spoken languages, The development team will also include representatives from the University of Oxford, the Deafness Cognition and the Language Research Centre at University College London, key Deaf stakeholders, and the Deaf community.
The task to build SignGPT will be a complex one. Globally, there are around 70 million Deaf or hard-of-hearing individuals, many of whom use sign language as their primary form of communication. There is no universal sign language: sign languages are natural human languages created over centuries by Deaf communities and are not derived from spoken languages. Their underlying rules and structures remain a rich area of linguistic study. Each sign language has its own unique grammar and lexicon, relying on both manual gestures (hands) and non-manual expressions (body and face), along with spatial elements, to convey meaning.
Launched in November 2021, the Surrey Institute for People-Centred AI takes a new research approach that puts people at the heart of AI, augmenting human capabilities to deliver an inclusive and responsible force for good. The SignGPT project epitomises the impact that the institute aspires to make.
Posted by: Duncan Aitchison at 09:18
Tags: LLM genAI
Cognizant has secured a multi-year extension to the engagement with McDonald’s Corporation which began in 2017. The next phase of the collaboration will see the IT services heavyweight continuing to support the fast food giant in several enterprise areas, including global finance systems and human capital management. The latter encompasses payroll processing, franchisee management, master data management, and legal applications.
The new agreement will also see Cognizant focus on the deployment of AI and cloud solutions to enhance McDonald's staff enablement, customer experience, and operational efficiency. This will include the leverage of Cognizant Neuro® IT Operations and Skygrade™ (see here).
The recent fortunes of other major IT suppliers to the Golden Arches have been mixed. Just over a year ago, Accenture announced an expansion of their strategic partnership to help execute McDonald’s strategy to leverage the latest edge technology and apply generative AI solutions across its outlets worldwide. Conversely, IBM saw its contract for the development and deployment of its Automated Order Taking (AOT) technology at the restaurant chain’s drive thrus in the US come to an abrupt end last summer (see here).
Posted by: Duncan Aitchison at 09:08
Tags: contract cloud retail AI IT+services
Sopra Steria has acquired a stake in French AI startup XXII through its venture arm, underscoring the growing importance of computer vision in enterprise digital transformation. The investment announced yesterday should allow Sopra Steria to take advantage of its digital twin capabilities across key sectors including transportation, energy, defence, and retail.
The investment comes at a key moment in the computer vision space, as the convergence of video large language models (VLM) and traditional computer vision technology reshapes the market. XXII's offer focuses on its real-time video analysis platform, particularly its CORE software, that enables clients to extract insight from existing camera infrastructure, supporting a range of use cases from critical infrastructure monitoring to industrial supply chain optimisation.
The Sopra Steria deal follows XXII's Series A round in March 2023, which attracted investors including the Defence Innovation Fund and SNCF Group, and a subsequent investment from CMA-CGM Group in late 2024. For XXII, Sopra Steria's large scale client base and SI capabilities offer growth opportunities, particularly in regulated and Government sectors.
The investment aligns with Sopra Steria's stated ambition to enhance its offering with a shift from “service-based” to high “value-added solutions” (see Sopra Steria’s Capital Markets Day sets out stall for the next three years) via asignificant push into AI and cloud services. By incorporating XXII's computer vision capabilities into its digital twin offerings, Sopra Steria strengthens its position in the growing market for AI-powered operational intelligence solutions. The deal, run through Sopra Steria Ventures (which typically invests between €250k and €1.5m), reflects the increasing strategic value of computer vision in enterprise digital transformation, particularly as organisations look to extract more value from visual data sources.
Posted by: Marc Hardwick at 08:28
Tags: investment computer+vision
The targeted application of AI in sustainability is a relatively new development. One of the most useful ways to understand the market is to know who the most the innovative and disruptive players are, what they’re doing, and how this activity is influencing emerging ‘hotspots’ at the nexus of well-understood problem and well-honed AI solution.
There is a paradox surrounding the use of AI in sustainability, however, because – while AI supports practices to reduce greenhouse gas emissions and mitigate the environmental impact of twenty-first century life – its use also contributes to the problem. Weighing the positives and negatives of AI in sustainability is therefore highly nuanced, often requiring an assessment of energy efficiency vs. outcome effectiveness.
In this report, we look at ten disruptive and innovative suppliers in the field, whose offerings leverage AI across a number of sustainability use cases. Some bring sector-specific applicability – in manufacturing, energy, agriculture, etc.; others have more general appeal. We highlight key trends in the deployment of AI in sustainability, and also provide recommendations for both technology suppliers and end-user organisations.
SustainabilityViews subscribers can download Disruptors & Innovators: AI in sustainability now. If you are not yet a subscriber, or are unsure if your company has a subscription, please contact Belinda Tewson to find out how you can access the research.
Posted by: Craig Wentworth at 07:00
Tags: partnerships energy regulation optimisation digital twins
Australian headquartered fintech, PEXA, (Property Exchange Australia) is celebrating a new milestone in its UK push, having recently processed £100m worth of UK remortgage transactions via its platform. PEXA has developed what it describes as “the world’s first digital property exchange process”. The milestone demonstrates the vendor’s efforts to modernise the technology and back-end infrastructure that support UK property transactions.
Founded in 2013 by a coalition of Australian local governments, PEXA’s technology streamlines the onerous buy-to-let remortgage process. The vendor claims that it can facilitate completion at least ten days faster than via traditional methods. PEXA cites one case which was completed via its platform in just 36 working hours. This is a significant improvement on the typical four to eight weeks borrowers usually have to wait. Having focussed its efforts on the remortgages during 2024, PEXA is currently developing a sale and purchase proposition which is planned for roll out later this year.
PEXA recently launched the Future Property Transactions Group, a pilot initiative to bring together industry stakeholders in order to drive progress towards more streamlined transactions. The Group has so far engaged with mortgage lenders, conveyancers, mortgage brokers and estate agents as well as regulators, regional government and industry bodies.
Mortgage finance is at the heart of the house purchase process and currently relies heavily on brokers and building societies. As a result, the inertia inhibiting the processing of property transactions can often be traced back to these stakeholders. Although things are gradually changing for the better, in many cases the current approach is typically unwieldy, document laden, and ripe for modernisation.
Posted by: Jon C Davies at 10:27
UK-based fintech, Fundment, has successfully raised £45m to support its wealth management proposition. The Series C funding was led by Highland Europe, which invests primarily in growth-stage technology companies.
Founded in 2018, by former BlackRock and abrdn asset manager Ola Abdul, Fundment has developed proprietary technology to help streamline the wealth management process. Targeted at the financial adviser space, the platform combines core services, back-office tools, and investment management functionality, providing access to a wide range of investments. Fundment currently claims a customer base of more than 500 wealth management firms. With the UK government set to overhaul public sector pension provision, the company is also working with local authorities to provide modern technology architecture.
Competition and wafer-thin margins are continuing to fuel technology adoption within the UK wealth management sector. Whilst a great deal of this activity has centred around providing self-service tools for the mass-market segment, by comparison, the adviser space has been less well served. The challenge for providers such as Fundment is to help adviser firms to significantly reduce costs and improve service consistency, as they compete with a growing variety of threats.
Posted by: Jon C Davies at 09:29
As first covered before Christmas (see Eckoh declines 10% as it looks to go private), UK-based call centre payments and security specialist Eckoh has been acquired by private asset growth investor Bridgepoint at 54p a share, marking the first investment from its small-to-mid-cap fund. The deal, which concluded yesterday, will see Eckoh delist from London's AIM market, ending its tenure as a public company.
This acquisition should allow Bridgepoint to capitalise on the growing demand for secure customer engagement solutions, particularly in the contact centre. Eckoh, which holds a range of patents for its security solutions, has established itself as a key player in protecting sensitive payment and personal data across various customer engagement channels.
The timing of the acquisition makes sense, given increasing regulatory complexity, the rise of hybrid working in contact centres, and escalating concerns over data breaches. Eckoh's approach of removing sensitive data from contact centres rather than merely securing it has proven attractive to over 200 clients across government, telecomms, retail, and financial services.
Under Bridgepoint, Eckoh is expected to pursue more aggressive growth, with particular focus on North American expansion, product innovation, and acquisitions. The private equity firm's experience in technology and financial services investments, combined with its €67bn assets under management, suggests it has the necessary firepower. For the broader CX security market, the acquisition signals continued PE interest in specialised security solutions providers, particularly those addressing the evolving challenges of remote work and digital transformation in the customer services space.
Posted by: Marc Hardwick at 09:26
Tags: acquisition software delist security payments contact centre
TechMarketView’s updated outlook for the UK Software and IT Services market is available to download here. In this forecast cycle we revise the estimates published last summer to reflect market activity in the second half of 2024 and current economic conditions.
The latest data shows that vendor hopes of a significant uptick in UK SITS demand during the latter part of the year did not materialise. In parallel, the prospects for the domestic economy have taken a turn for the worse. While our June estimates for SITS expansion in 2024 appear to be holding true, we have downgraded our growth forecast for the next three years.
The impact of the changed prospects for UK SITS demand will not be evenly spread across the either the buy-side or sell-side communities. In our latest Market Outlook Update we take a deeper dive into the 2024 numbers, look at what’s been happening in the market since the summer, and more importantly assess how the projections for the coming years are now shaping up.
TechMarketView subscribers can read the analysis now. If you aren't a subscriber – or aren't sure if your organisation has a corporate subscription – please contact Deb Seth to find out more.
Posted by: Duncan Aitchison at 08:38
Tags: newresearch market forecasts
Last week the National Audit Office (NAO) published its report on the ‘Government’s approach to technology suppliers’, concluding that the government’s slow progress in improving its use of technology suppliers has wasted taxpayers’ money and contributed to poor outcomes in its attempts to modernise.
The NAO says the Government Commercial Function (GCF), of which the Crown Commercial Service (CCS) is a key constituent, does not have the requisite digital skills to reflect the procurement challenges of digital programmes. Too often the focus of staff is on procurement processes, with limited resource given to managing suppliers post-contract award. Despite these shortcomings, the NAO says it has not seen evidence of government undertaking a formal assessment of its digital procurement skills needs.
The report highlights how the government has struggled with the shift from traditional outsourcing models and the creation of government-owned assets towards cloud-based subscription solutions. This has created tensions between commercial guidelines and the requirements of digital transformation. It also raises concerns about the lack of a shared strategic approach towards the hyperscalers. Despite the memoranda of understanding it has secured with these cloud service providers (and other strategic suppliers), there remains insufficient information about the pipeline of demand or supplier performance to inform future decisions.
Despite the challenges in the centre of government, it is at departmental level where problems are most likely to manifest themselves. The report says that commercial teams within departments often make decisions on digital procurements without the benefit of digital expertise. The NAO also found that several departmental chief digital and information officers (CDIOs) are excluded from the conversation until after a business case has been agreed or contracts have been signed. These poorly defined requirements, coupled with an over-emphasis on acquiring the minimum requirement or cheapest resource, has contributed to poor outcomes, delays, cost overruns, and the deterioration of legacy systems.
The NAO calls on the GCF and CCS to decide who should take ownership for addressing the problems identified in its report. It recommends a new sourcing strategy to drive improvements to how government manages its strategic digital suppliers and the creation of a new digital skills plan. It also says that departments should strengthen their ability to act as an intelligent client and manage suppliers and contracts effectively.
The report highlights many of the challenges facing the government as it attempts to modernise its digital services, reap the benefits of AI, enhance productivity and value for money, and improve public services. There remains a disconnect between those responsible for digital and data policy (Department for Science, Innovation and Technology), those responsible for digital procurement (GCF), and individual departments. Decisions on major change programmes continue to be made without the requisite digital skills (even if that expertise is available) and government is still struggling to address digital recruitment shortfalls.
Later this week, the government will publish its report on the public sector’s reliance on outdated technology and paper-based solutions. This will be accompanied by plans for reform, but until the fundamental issues raised by the NAO are addressed, meaningful transformation will remain inefficient and ineffective.
Posted by: Dale Peters at 10:04
Tags: strategy government suppliers productivity public+sector digital+transformation value+for+money
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