Debra Maxwell, CEO at ArvatoConnect, explores how the government’s procurement process is stifling digital transformation and how more agile partnerships can deliver real benefits at pace.
The UK government has set itself a bold challenge: modernise public departments and services and cut Civil Service costs by 15% by the end of the decade – unlocking more than £2.2 billion in annual savings.
This isn’t just a cost-cutting exercise. It’s about unlocking productivity with smarter, faster and more connected services that meet evolving citizen needs, ensuring tight budgets are directed to deliver crucial, front-line services.
Central to this transformation is the government’s appetite for digital innovation and AI-led efficiency. The £3.25 billion Transformation Fund, announced following the Spring Statement is front and centre in the drive to deliver this. But if government departments are going to move at the pace required, they must embrace the art of the possible.
The silent handbrake
Central to this is the procurement process. It should be a springboard for digital revolution, not evolution, but right now its geared towards the status quo.
Departments are stuck with comfortable incumbents and clunky processes, because the system rewards caution, not capability. Only half of UK public services currently have a digital channel. That’s a glaring gap between ambition and delivery.
The belief that “no one ever got sacked for hiring the incumbent” still lingers. And it shows. When bids rarely lead to new suppliers, innovation stalls. Agility is lost. And departments miss out on the real gains new partners can offer.
Instead of opening the door to real innovation, procurement processes keep defaulting to the same solutions – conglomerates that have absorbed many legacy outsourcers – while smaller, more ambitious firms are left waiting on the sidelines.
Smaller partners, bigger impact
Smaller, specialist suppliers bring what government needs most: speed, adaptability and impact. They move quickly, pilot new ideas and scale on performance.
But too often, they’re boxed out by procurement systems that value the safe option.
We need bidding processes that are simpler. We need more transparency around SME opportunities. And we need to assess suppliers on whether they can solve the problem, not whether they’ve worked with that exact department before.
We’ve seen it. We’ve solved it.
At ArvatoConnect, we know this solution works.
We’ve supported Crown Commercial Services to make smarter procurement decisions. We’ve helped Dudley Council apply new technology on top of legacy systems and automate routine work with robotic process automation – freeing up employees for higher-value tasks.
Our innovative AI-led transformation plan on Financial Viability Risk Assessments processes have delivered tangible savings while improving assessment quality. These aren’t pilots. They’re real projects, delivering real results, right now.
We’ve done it for central government. For local authorities. For private sector leaders. We know what works and more importantly, how to make it work fast.
Proper process, more progress
The 15% efficiency target is ambitious but it’s achievable. And with the right partners, the government can move faster, reduce costs and transform how services are delivered across the UK.
Procurement shouldn’t be a barrier to change. It should be the engine room for progress.
It’s time for government departments to shed their risk aversion and the perceived safety net of traditional incumbents. Now is the moment to embrace the opportunities for genuine transformation with agile, innovative partners that are geared up to deliver real, tangible results.
