The UK’s Metropolitan mayors are all on the same page: they believe digital transformation decisions should happen locally. But there’s a big gap in understanding the time and money needed to make these ideas work.
These regions struggle to replace outdated systems, much like banks did over the past decade, but they lack the necessary skills and funding. A study by CGI looked into twelve mayoral manifestos, revealing that these leaders, representing around half the UK’s population, see local control as essential for digital change.
Tara McGeehan, the UK and Australia president at CGI, emphasized that these areas are far from Whitehall. It’s smarter to have mayors with a local focus than to leave decisions in London. CGI analyzed plans from mayors across various regions, including Greater Manchester and Liverpool City Region.
These mayors show potential to listen closely to local voices and make a difference if they leverage technology effectively. Yet, McGeehan raised concerns about whether there’s a true grasp of the skills required, the level of investment needed, and how long it really takes to implement change.
The situation is complicated by what she calls the “elephant in the room.” Much of the IT in local government is very outdated. “Current legacy systems aren’t built for digitization,” McGeehan noted. Some local governments have rolled out digital services, but often these are just digital layers on top of old systems. “It takes time to implement new IT, leading to a dependency on dated technology. Many councils think they’re innovating by just putting a digital facade on legacy systems, but it’s not genuine transformation.”
Banks faced similar challenges when dealing with their legacy systems, but fintech companies brought in huge investments to help them move forward. Local governments, however, don’t have the same resources or expertise.
Because of these outdated systems, regions struggle to apply modern technologies like artificial intelligence. They’re stuck using outdated methods to manage data across various systems.
Furthermore, CGI’s research pointed out a lack of awareness around data protection, as only half of the metropolitan manifestos addressed data sovereignty. McGeehan highlighted that understanding where data lives is crucial since data could be misused if it gets sent offshore. This issue ties into broader concerns about cyber security and protecting local systems.
Local governments also face the challenge of digital poverty, especially as they try to transition citizens to digital services. McGeehan mentioned that many people, particularly the elderly, are left out when services require apps for basic tasks. For instance, her local railway station’s parking can only be accessed through an app, which excludes many older individuals who aren’t tech-savvy.
Similarly, banks had to navigate the needs of older customers when moving to online banking. The wider adoption among older generations only really picked up during the pandemic when they were forced to go online.