The Expert View: Modernising Legacy IT in the Public Sector

“According to a report published by the Digital Economy Council in 2020, £2.3bn of the £4.7bn UK government spent on technology in 2019 was dedicated to keeping the lights on activity on outdated legacy systems,” said Scott Hamilton, Head of Central Government at Amazon Web Services (AWS), opening a Business Reporter dinner briefing on legacy IT in the public sector. Senior executives and technology leaders from across the public sector attended the briefing, at the House of Lords, to discuss how government institutions can modernise while maintaining stability.

Amid growing demands for agility and efficiency in public sector IT, AWS has made modernisation a strategic priority, said Mr Hamilton. As the discussion unfolded, attendees explored the cultural, financial, and technological barriers to change.

Legacy or heirloom?

The most significant problem with legacy IT systems is that they limit innovation and responsiveness. Despite their outdated nature, these systems are often indispensable and deeply embedded in core operations, making them difficult – and sometimes risky – to replace. One executive suggested calling them “heirlooms” rather than legacy, emphasising their value while acknowledging their age.

Another recurring theme was the challenge of aligning operations with systems, rather than adapting systems to support operational goals. Too often, government bodies force operations to conform to outdated systems, leading to inefficiency and frustration.

Finally, cultural resistance within organisations adds complexity. Attendees highlighted how fear of change – especially when job security is at stake – can lead to resistance from staff. This is exacerbated by poor communication, where discussions about system upgrades often create uncertainty before any concrete plans are in place. As one delegate noted, “If you communicate too early, your best people will leave.”

The challenge is not just technological but also deeply rooted in organisational behaviour and leadership turnover, making modernisation more complex.

Leadership challenges

The public sector faces unique hurdles when it comes to legacy IT, many of which are tied to the structure and pace of government operations. One attendee raised the misalignment between the long timelines required for technological upgrades and the short-term nature of government planning. Treasury budgeting often operates on two-year cycles, but large-scale IT projects can take a decade.

Career-focused senior leadership also poses a challenge. Many decision-makers are thinking of the short-term and are not incentivised to take on the difficult, long-term work of system modernisation. Instead, the priority is often to leave behind a “success story,” even if that means pushing through projects that don’t address systemic issues.

Lastly, the public sector lacks the commercial pressures that drive innovation in private enterprise. This can lead to complacency, where outdated systems are allowed to persist until a critical failure forces a reactive, rather than proactive, response.

Identifying solutions

While the challenges are significant, attendees shared several potential solutions, such as moving towards cloud-based, modular development. As one attendee explained, “One program that issues a license is essentially the same as another, regardless of what it licenses. By developing that as a module, it can be deployed across various departments.” This approach not only reduces the cost and complexity of modernisation but also allows for incremental improvements over time.

Another suggestion was improving communication and leadership buy-in. Many attendees argued that technology teams need to communicate more effectively with senior leadership by using clear, business-oriented language. Focusing on explaining the business impact of IT modernisation in natural language will help non-technical leaders understand the pros and cons of proposed changes.

Artifical intelligence (AI) tools were mentioned as having potential to bridge the communication gap by simplifying complex technical concepts and even helping technical staff to write briefing documents that non-technical colleagues will understand.

Finally, changing the funding structure to allow for ongoing development and iterative improvements would prevent legacy debt from accumulating and keep systems up to date. By securing long-term investment for technology projects, public sector organisations can ensure that modernisation efforts are sustained, reducing the risk of creating new legacy.

Changing mindsets

Closing the briefing, Mr Hamilton reiterated the importance of cultural change alongside technological transformation. He emphasised that while legacy IT presents significant challenges, they are not insurmountable. “This isn’t just a tech problem—it’s a mindset problem,” he remarked, highlighting the need for leadership to align more closely with the demands of modernisation.

Hamilton pointed out that the risks associated with innovation have diminished in recent years, thanks to advancements in technology and better frameworks for managing failure. “The blast radius of failure is smaller now,” he said. “There is more room to experiment and take calculated risks.”

By fostering a culture that supports innovation and continuous development, the public sector can overcome the inertia of legacy IT and build a future-ready infrastructure.

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