Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Accepted
Government's technology market approach lags, requiring tailored sourcing strategies.
Recommendation
We therefore asked how government was keeping up with the pace of change in technology markets, and when we could expect a coherent strategy in response. DSIT recognised that there was currently a gap between the market in which it was operating and its approach and committed to publishing a sourcing strategy. DSIT similarly recognised that the technology market had shifted, and that sourcing in digital was “probably more complicated than it used to be”. It told us that it would need strategies for approaching different parts of the market. It explained that the big platform providers—those that provide, for example, cloud and office software—have different business models and incentives compared to the large system integrators and consultants that run projects and are different again from those who ship hardware. It noted that its approach to each of these would have to be tailored to their business models.9
Government Response Summary
The government agrees with the recommendation and will update the Digital, Data and Technology (DDaT) Playbook, launching a publication in December 2025 to align with current practices for procurement across public sector projects. The committee will receive an update on progress in December 2025.
Government Response
Accepted
HM Government
Accepted
3.5 The government agrees with the committee’s recommendation. Target implementation date: December 2025 3.6 The government is taking forward the actions outlined below on which we will update the Committee on progress in December 2025: 3.7 The Digital, Data and Technology (DDaT) Playbook provides a comprehensive framework for managing digital and technology projects within the public sector. The Market Sourcing and Suppliers Team is responsible for the playbook and is working with GDS to launch a publication in December 2025, bringing it up to date with current practices and for adoption across all relevant procurement activities. 3.8 Key points from the Playbook include: • Best Practices: The Playbook consolidates best practice guidelines and policies that help procurement professionals set up projects for success from the outset, minimising the risk of costly mistakes. • Outcome-Based Approach: It emphasises an outcome-based procurement strategy, focusing on delivering value rather than merely reducing costs. This aligns procurement activities with user needs and government priorities. • Market Engagement: The Playbook encourages early engagement with the market, facilitating innovation and collaboration, particularly with SMEs, to harness diverse solutions that meet public sector requirements. • Risk Management: It promotes a balanced approach to risk, ensuring that risks are allocated to those best able to manage them, thereby enhancing project resilience and sustainability. • Continuous Improvement: The DDaT framework supports iterative testing and learning, allowing procurement professionals to adapt strategies and improve service delivery over time. • Compliance and Governance: The Playbook sets out clear governance structures and compliance requirements for central government departments and arm's-length bodies, ensuring transparency and accountability in procurement activities. • Cyber Security and Legacy IT: It includes specific guidelines on cyber security and addressing legacy IT issues, which are critical for safeguarding public data and enhancing operational resilience.