Delivering successful government IT projects

James McGoldrick at Systal asks whether support from the tech vendor channel can help to deliver successful government IT projects

 

The UK’s National Audit Office (NAO) released a report in January 2025 examining the effectiveness of government partnerships with technology suppliers. This report highlights the mixed success of digital transformation initiatives, detailing common pitfalls in procurement, project management, and execution. 

 

I believe that structured engagement with experienced vendors and delivery partners in the IT sector can help address these pitfalls, leading to increased success in government IT project delivery. 

 

Tech vendors in government IT projects

Technology vendors can support government IT initiatives to provide expertise in digital transformation, ensuring regulatory compliance, clarifying project scope, and offering flexibility in delivery. 

 

However, for these benefits to be realised, government agencies must engage vendors early in the process, incorporate their expertise into planning, and foster collaborative relationships. If the planning and tender stages of a project are led by a team that lack sufficient practical experience in technological change or the key technologies concerned by the IT project, there is a risk that planning and scoping work may be inaccurate, leaving the potential for many of the problems outlined in the NAO report to surface. 

 

1. Digital transformation change management

A key challenge highlighted in the NAO report is the lack of internal expertise within government departments to manage large-scale digital transformation projects. Many public sector organisations do not have staff with the necessary experience to oversee complex technical changes. This gap often results in incomplete or inadequate planning, leading to delays, cost overruns, and, in some cases, project failure.

 

Tech vendors, particularly those with experience in enterprise IT transformation, can provide specialised change management expertise. The introduction of experienced technical consultants before a project’s Request For Proposal (RFP) or tender process ensures that the critical steps required for successful project delivery are identified early. This proactive approach mitigates the risk of unexpected complications during execution.

 

The NAO report supports this notion, emphasising that procurement processes must be more aligned with the realities of digital transformation. The report notes that existing government procurement mechanisms are better suited to commodity services rather than complex IT projects, leading to inefficiencies when attempting to modernise legacy systems. Given the current procurement frameworks and tender processes, this may not be easy to address.

 

2. Understanding the complexity of IT projects

The government’s digital transformation efforts have often underestimated the complexity of modern IT projects. The NAO report highlights multiple instances where insufficient planning and unrealistic budgeting led to significant cost overruns. One notable example is the Universal Credit system, which saw a 45% cost increase and a six-year delay. Could better initial planning and scoping have avoided this?

 

Tech vendors bring valuable expertise in navigating the regulatory, security, and technical complexities associated with government IT projects. Data security and compliance with national and international regulations must be integrated into the project scope from inception. Unfortunately, as the NAO report suggests, budgeting often occurs before these complexities are fully understood, leading to subsequent delays and funding gaps.

 

By involving technology vendors earlier in the planning process, government agencies can develop more realistic budgets and timelines. Vendors can assess infrastructure requirements, security needs, and interoperability challenges before contracts are signed, reducing the likelihood of costly mid-project adjustments.

 

3. Scoping projects effectively

One of the most significant contributors to IT project failures is the inadequate specification of requirements. The NAO report highlights that many government IT contracts are initiated without a thorough understanding of the technical and operational requirements. This leads to frequent contract modifications, cost escalations, and extended delivery timelines.

 

Tech vendors can help address this issue by embedding experienced solutions architects and consultants at the initial stages of project planning. These professionals can work with government stakeholders to define clear objectives, map out system integrations, and identify potential technical hurdles before procurement begins. This upfront investment in scoping ensures that vendors can deliver solutions that are fit for purpose, reducing project risks.

 

The NAO report also points out that government departments often fail to act as “intelligent clients” when managing technology suppliers. Rather than dictating requirements based on outdated procurement models, departments should adopt a more collaborative approach, leveraging vendor expertise to refine and validate project scopes.

 

4. Fostering vendor-government collaboration

Experienced technology vendors have learned from past mistakes in government IT projects. Competent vendors now approach these initiatives with greater flexibility, anticipating potential roadblocks and proactively working to resolve them. However, for this approach to be successful, government departments must also adjust their engagement strategies.

 

The NAO report highlights that supplier relationships in government projects often become adversarial due to rigid contract structures and a focus on cost minimisation over long-term value. Instead of treating vendors as simple service providers, government agencies should foster strategic partnerships. This means engaging vendors as trusted collaborators who can provide innovative solutions rather than merely fulfilling pre-determined contractual obligations.

 

For example, many government IT projects have suffered due to the misapplication of Agile methodologies. While Agile can be effective for iterative development, it requires continuous stakeholder engagement and adaptability—something that traditional procurement models struggle to accommodate. By working more closely with vendors and embracing flexible contract structures, government agencies can better navigate the uncertainties inherent in digital transformation projects.

 

Changes to government interactions

For government IT initiatives to succeed, several key changes are required in how government agencies interact with the tech vendor channel: 

1. Early engagement with vendors. Government departments should involve technology vendors during the initial planning stages to gain insights into the feasibility, risk assessment, and optimal solution design.
2. Improved procurement processes. The government must move away from outdated procurement models that prioritise cost over value. Contracts should be structured to encourage collaboration and adaptability.
3. Investment in internal digital expertise. Departments must develop better internal capabilities to act as informed clients. This includes hiring professionals with experience in digital procurement and IT project management.
4. Data-driven decision making. The NAO report emphasises the need for better data collection on supplier performance and project outcomes. Government agencies should use this data to refine procurement strategies and supplier relationships.
5. Strategic partnerships over transactional contracts. Rather than issuing rigid RFPs with little room for adaptation, government agencies should work closely with tech vendors to ensure that projects remain aligned with evolving needs and technological advancements. 

The UK Government’s digital transformation efforts have faced significant challenges, many of which stem from ineffective procurement strategies, unrealistic planning, and a lack of internal expertise. However, the technology vendor channel offers a viable solution—provided that the government is willing to adapt its approach.

 

By leveraging vendor expertise in change management, security, project scoping, and delivery flexibility, government IT projects can achieve greater success. The key is early engagement, better-defined requirements, and a shift from rigid contract structures to strategic partnerships. If these changes are implemented, government IT initiatives will be better positioned to deliver effective, secure, and cost-efficient digital services for the public sector. 

 

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James McGoldrick is Head of Security Services at Systal

 

Main image courtesy of iStockPhoto.com and Alex Sholom