Can Partnerships End the UK’s £45B Tech Crisis?

Can Partnerships End the UK’s £45B Tech Crisis?

With years of experience evaluating cloud providers and their applications across industries, Maryanne Baines is an authority on the technological challenges facing organizations today. She joins us to discuss one of the most pressing issues in the UK: the public sector’s struggle with outdated IT. The government itself estimates that maintaining legacy systems costs a staggering £45 billion annually, a figure that highlights a deep-rooted problem of vendor lock-in and piecemeal procurement. This conversation explores how strategic partnerships and modern frameworks can offer a path forward, moving from simply patching old software to building innovative, citizen-focused services. We’ll delve into the practicalities of collaboration, the importance of good governance, and how to ensure smaller, innovative firms get a genuine seat at the table.

The UK public sector faces a £45 billion annual tech problem, largely from outdated systems. Beyond the cost, could you share an anecdote of how this reliance on legacy software concretely hinders innovation and productivity within a government department on a day-to-day basis?

Absolutely. You can feel the frustration in these departments. Imagine a team responsible for citizen services, working with a system that was built two decades ago. Every morning, they log into a clunky, slow interface that feels like a time capsule. When a citizen calls with a slightly unusual request, the employee has to navigate a maze of disconnected databases, often resorting to paper forms or creating a separate spreadsheet just to track the issue. This isn’t just inefficient; it’s demoralizing. Innovation is completely stifled because any new idea—like creating a simple mobile app for citizens—would require a massive, high-risk project to untangle the spaghetti of old code. The day-to-day reality is a constant battle against the technology that is supposed to be helping, draining productivity and preventing dedicated public servants from delivering the quality of service they want to.

The piece mentions procurement frameworks like Cloud Compute 2 and DALAS. Can you walk us through the step-by-step process of how a department uses these frameworks to assemble a team of specialists, such as a cybersecurity partner and a data firm, for a modernization project?

These frameworks are game-changers because they essentially act as a pre-vetted marketplace of trusted suppliers. Instead of a department spending months or even years on a full, red-tape-laden procurement process, they can start with a list of approved partners. The first step is to define the outcome they want to achieve, for example, moving a critical service to the cloud. Then, using a framework like Cloud Compute 2, they can select a lead systems integrator to coordinate the project. That lead partner then works with the department to pull in the necessary specialists from the same approved list. They might bring in a niche cybersecurity firm to secure the new environment, a FinOps consultancy to manage cloud costs effectively, and a small, agile data analytics company to ensure the migrated data delivers new insights. It all happens under one coordinated plan, transforming a bureaucratic hurdle into a streamlined, collaborative effort that gets projects moving much faster.

Using the NHS Federated Data Platform as an example, could you detail the governance model required to make a partnership successful? How does a lead partner coordinate multiple vendors to ensure accountability and achieve a shared goal, rather than just delivering separate pieces of tech?

The NHS Federated Data Platform is a fantastic example of getting this right. A successful governance model hinges on having one accountable lead and a crystal-clear, shared goal that everyone is working toward. In this case, the goal wasn’t just to buy cloud storage or an analytics tool; it was to safely connect information to make life easier for clinicians. The lead partner’s role was to orchestrate the collaboration between cloud, analytics, and assurance partners, ensuring they weren’t just delivering their individual components in a silo. They established a transparent supply chain where every partner understood their role in the bigger picture. This model is also designed to be adaptable, which is key. It creates a shared data backbone but still allows individual departments to control their own systems, preventing a top-down, one-size-fits-all approach. That way, you’re not just buying technology; you’re building a living system that can evolve with the NHS’s needs.

Partnerships risk SME participation becoming a box-ticking exercise. What specific metrics or accountability structures should be built into contracts to ensure small, innovative businesses are genuinely integrated and contributing value, helping to meet the 2028 SME-spend targets?

This is a critical risk, and the only way to avoid it is through intentional, transparent design from the very beginning. It’s not enough to just name a few SMEs in a bid. Contracts must have accountability baked in. This means clearly defining who is responsible for what, setting shared goals that directly involve the SME’s unique expertise, and establishing open reporting on progress. For instance, a contract could specify that a small data firm is solely responsible for a key analytics module and will report its progress directly to the government client, not just through the prime contractor. Furthermore, to make it truly meaningful, the partnership should tie SME involvement to wider commitments beyond the technical delivery. This could include creating local jobs, contributing to skills development, or helping reduce the project’s environmental impact. When public money is seen to deliver this kind of social value, SME participation becomes an integral part of the project’s success, not just a contractual obligation to hit a 2028 target.

What is your forecast for the future of UK public sector procurement?

I believe we’re at a turning point. My forecast is a decisive shift away from procurement being about buying bits of technology—a server here, a software license there—and toward it being about building joined-up systems that deliver genuine public value. The focus will move from one-off digital projects to long-term service transformation. The government’s role will be to set a clear, ambitious vision for what it wants to achieve for its citizens. It will then rely on a flexible and competitive network of trusted partners, both large and small, to bring that vision to life collaboratively. It’s a future where technology is no longer a bureaucratic burden but a powerful enabler that frees up people’s time, supports better decisions, and truly works for the people it’s meant to serve.

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