The UK Government’s new State of Digital Government Review (SDGR) identifies both successes and challenges in delivering digital transformation. These five root causes were identified in the review as the key barriers that inhibit digital transformation in the public sector.
Leadership – Leaders have few incentives to digitise and are not sufficiently represented on executive committees. Hence, digital transformation is not a focus, nor does it drive the organisational agenda.
Structure – Most public sector institutions are siloed, building their separate technology infrastructures. This lack of coordination leads to integration, standardisation and interoperability gaps, where citizens are served by disjointed systems.
Measurement – The effectiveness of digital initiatives is not gauged uniformly. Service quality, customer experience, and risk management are not regularly tracked as their measurement is resource intensive.
Talent – The public sector is unable to hire and retain sufficient skilled digital professionals due to noncompetitive compensation and poor career path progression versus the private sector. Consequently, there is a dependence on contractor and consultancy services, which results in the dwindling of internal competencies over time.
Funding – Funding is skewed towards new initiatives, which compromises maintenance on existing systems. Sometimes, changes in legislation make budgets move and this adds pressure on already stretched digital and data projects which require constant maintenance.
As organisations move to a world where technology is the foundation of nearly every element of the public service, the review captures the spirit of a digitally enabled future government that is citizen-orientated, secure, and environmentally sustainable. With the growth in digital services, the review also notes the need for strong cybersecurity measures to secure sensitive data and build trust.
It has been emphasised how in a digital-first world, many public services are becoming more efficient, accessible and secure. At this transformations heart is a commitment to putting citizens first through simplification of processes. Part of the plan to do this includes introducing the “once only” approach to cut down on repetitive admin for both individuals and organisations.
Improving how data is used and shared across departments is another focus – breaking silos to support their teams with better decision making and deliver services in a more efficient and coordinated manner. But technology alone is not enough, investing in people, upskilling teams to navigate and sustain these changes, as well as fostering collaboration with the private sector to spur innovation is also needed.
This review also discusses modernising systems – creating services that work for all, making the government more open, effective, and helpful. It is a call to change, to ensure that public services can manage the challenges of the present while being ready for the opportunities of the future.
Digital Transformation and the need to do better is applicable to both public and private sectors. At Goaco, we view transformation as something more than a shift in tools, it’s an important change in mindset and approach.
From the review several critical areas are highlighted
Citizen-Centric services – The government has a goal of simplifying the way people can access public services, to make them more inclusive and user friendly with a move towards a ‘once only’ approach which could save citizens and organisations countless hours of time.
Data utilisation – A key priority is the effective use of data. The report stresses the importance of tearing down silos and moving towards a more integrated approach to data sharing to build better decision making and service delivery.
Strengthening Cyber Security – With an ever-increasing number of digital services and a growing cyber threat, there has never been a greater need for robust cybersecurity. A fundamental part of this strategy is protecting sensitive data and maintaining public trust.
Upskilling the workforce – Digital success isn’t just about technology, it’s about the people behind it. The focus on equipping sustainable teams with the skills to navigate and implement digital transformation is essential.
A recent study showed that 87% of organisations consider digital transformation as a priority, and 67% of them point to customer expectations as a driving factor. However, legacy systems, skills shortages, and siloed data pose common challenges to progress.
Other analysis of the public sector shows that fully digitising government operations could provide 20–30 percent efficiency gains, which could provide huge value both to citizens and taxpayers. Analysis shows that over £45 billion per year of unrealised savings and productivity benefits of 4-7% of public sector spend, could be achieved through full potential digitisation of public sector services.
The SDGR stresses how all organisations need to think beyond the status quo. It’s a reminder that digital transformation isn’t just about adopting new technologies but about creating meaningful change that benefits everyone.
At Goaco, we understand the complexities of digital transformation because our tailored approach is designed to help organisations align with the vision of the UK Government while addressing unique operational challenges.
Our team of experts can help your organisation
Digital Transformation services – We assist organisations with replacing or modernising legacy systems and improving overall processes leading to improvement in operations and user experience.
Data and AI services – We enable organisations to make smarter and more informed decisions by unlocking the power of data. Whether it’s through predictive analytics or AI driven insights, our team helps you turn data into actionable insights.
Cyber Security solutions – Trust is key in the digital age. Our expert team protects public and private sector organisations from both known and unknown security threats. As the digital world continues to grow, we can help you to improve your security, protecting you from cyber-attacks . With over 25 years of experience, our experts specialise in delivering a broad range of cyber capabilities across every step in the cybersecurity chain.
Cloud Services – Our cloud solutions are flexible, scalable and secure to help organisations optimise their operations and reduce costs.
Upskilling and Managed Services – We don’t just implement solutions; we help build your internal capability and support your services. Through training and ISO20000 accredited managed services, we ensure you have the tools and expertise to succeed in a digital first world.
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Review Key facts
- £26 billion: Spent annually on digital and data in 2023 across the UK public sector, including both third party and employee spend
- 47%: Services offered by central government which still rely on non-digital methods like phone calls and paper forms
- 97,000: Digital and data permanent employees and contractors across the public sector
- 9%: Major tech programmes in Government Major Projects Portfolio (GMPP) assessed as ‘Green’ (successful delivery highly likely); tech programmes are 60% more likely to be assessed as ‘Red’ (successful delivery highly at risk) than non-tech projects
- 3 million+: Accounts created through GOV.UK One Login, to access an initial set of 50 central government services, as of October 2024
- 50%: Digital and data recruitment campaigns which failed in 2024; a decline in performance from 22% in 2019
- 35%: Pay gap (%) between public and private sector for technical architects; equivalent to £30,000 per year
- 3x: Average cost of a digital or data contractor relative to a permanent employee
