The recent review by the Department for Science, Innovation and Technology highlights a big issue in public sector digital services: they’re all over the place. Each public sector organization operates independently, which leads to a lack of coordination. Most of them end up creating and maintaining their own tech systems. This approach makes it hard to standardize processes or share resources, ultimately resulting in a patchwork of digital services.
Take a look at how far behind central government and NHS services are compared to something like remote banking, used by 86% of adults. The review says about half of government and NHS services still lack digital pathways. It’s a glaring gap.
Finances play a role too. For 2023/24, the government set aside £26 billion for tech, which is about 5.9% of its operating budget. But that number is 2.9% lower than what similar-sized organizations spend on technology. The review warns that this underfunding leads to long-term costs spiraling out of control. Maintaining old systems can cost three to four times more than using modern options. For example, HMRC spends a fortune keeping its Cobol systems running.
The government often launches new programs but doesn’t give enough attention to maintaining existing ones. They pass laws without enough funding to back them, forcing budget shifts that undermine previously planned projects. As digital projects move away from one-time capital expenses to ongoing subscriptions, the pressure for steady funding increases.
The review also notes that the government is stuck in old procurement models. It’s shifting from outsourcing to creating internal teams and using cloud services, but procurement processes haven’t caught up yet. Major platforms are consolidating their roles, and many service providers are acting as resellers for these platforms. The review suggests that the government needs to adjust its sourcing decisions based on these market changes and the needs of the organizations involved.
Then there’s the issue of shared services. The review points out that a handful of resellers cater to various departments, but they might miss out on volume discounts. There’s also a lack of overarching contracts when it comes to software, like with VMware, which has raised its prices recently. Each of the NHS’s 209 secondary care entities negotiates its tech deals separately, as do the 320 councils, often missing opportunities for better deals.
Data integration is another tough nut to crack. Different regulations, risk-averse cultures, and old systems all contribute to a fragmented data landscape. For instance, HMRC’s Cobol systems make real-time data sharing complicated, requiring extra software just for basic API communications. Councils struggle with systems’ interoperability, facing barriers that legacy IT providers put in place, or they have to deal with the high costs of APIs necessary for integration.
The review paints a concerning picture: underinvestment in new tech and over-reliance on legacy systems mean public sector bodies aren’t making the most of tools like AI. The cautious approach to funding emerging technologies means lost opportunities in automation and improved service delivery.
Peter Kyle, the Secretary of State for Science, Technology and Innovation, summed it up well. He pointed out the existing gap between public and private sectors. His thoughts on the review reflect a struggle: “Successes are too often achieved despite the system,” he said, adding that experts do their best under tough conditions and outdated processes that weren’t designed for today’s digital world.