Unlocking the UK Central
Government’s Digital Future

Identifying opportunities in the 2022-2025 roadmap for digital suppliers

Introduction

In June 2022, the Central Digital and Data Office (CDDO) released a whitepaper, titled 'Transforming for a Digital Future: 2022 to 2025 Roadmap for Digital and Data,' outlining a unified vision for digital transformation across central government by 2025. The roadmap outlines specific actions central government ministries need to take to enhance efficiency, improve digital skills at scale and modernise the way public services are delivered.

In this Stotles report, we have analysed over £8.9b in digital contracts published across central government procurement pipelines. Our goal is to uncover how central government ministries plan to leverage private sector procurement to achieve these ambitious goals. This exclusive analysis offers a unique window into the UK government's digital procurement strategy, so that you can:

Identify top procurement sectors: Understand which digital services are in demand and strategically position your company.
Navigate the procurement calendar: Anticipate when relevant contracts will hit the market and when they will be awarded.
Target popular routes to market: Uncover the breakdown between frameworks, tenders & DPSs and discover the most important commercial agreements.
Explore buyer roadmaps: Gain in-depth insights into ministries' digital priorities and strategic investments, enabling you to identify and target key accounts.

With the help of these insights, you will be well-equipped to position your company to capitalise on major upcoming contracts and shape your central government strategy for 2024 and 2025.

Identify top procurement sectors

Understand the role of suppliers in the UK’s digital future

The 'Transforming for a Digital Future' roadmap envisions a digitally transformed, efficient UK government by 2025. Six cross government missions have been identified as critical to achieving this goal.

Understanding how these critical missions translate into procurement practice can be an uphill battle. To help suppliers understand where tangible opportunities exist, we've analysed over £8.9 billion in digital contracts to identify key sectors that are leading in procurement activity and spend, visualised below.

This insight is crucial for suppliers to anticipate opportunities emerging from the 2022-2025 roadmap.

Analysis of top digital procurement sectors

Below, we provide further insights into the highest spending categories, highlighting the top buyers, suppliers, and opportunities involved.

Telecommunications

Sector analysis: We have identified 47 contracts in telecommunications, cumulatively worth £2.4b, placing it at the forefront of digital demand.
Top buyers: Key buyers include the Ministry of Defence Digital (£783m), Ministry of Justice (£665m), and Home Office (£585m).
Future outlook: Approximately 38% of these contracts are expected to be re-procurements of existing awards, indicating significant opportunities for established companies like BT Group, Exponential-E, Capita & Virgin Media Business.

Cloud infrastructure, networks & storage

Market demand: We have identified 50 opportunities valued at £1.8 billion, reflecting the sector's significant investment and the continued need for externally sourced cloud solutions.
Top contracts: Notable spending includes the Home Office’s £671m contract for "Public Cloud Hosting Services" and HMRC’s £90m contract for "VME Mainframe Services."
Future outlook: Hyperscalers like Amazon, Microsoft, Google and Oracle are major beneficiaries in this category and are expected to dominate the £1.8b opportunity.

Digital transformation

Market demand: As the central government ramps up modernisation of public services, we've identified 35 contracts worth £1.8b aimed at migrations, integrations and transitions from legacy systems.
Top buyers: Key buyers include Ministry of Defence Digital (£853m), Home Office (£419m) and HMRC (£242m).
Future outlook: With 11 contracts valued at £412m expected to commence in 2024, there are competitive opportunities for a range of suppliers able to demonstrate their expertise and innovation in digital transformation.

Having identified these key sectors, we now turn our attention to the procurement calendar to understand the timing of these digital opportunities.

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Navigate the procurement calendar

Each April, central government ministries must publish procurement pipelines. These pipelines reveal anticipated contracts expected for over the next eighteen months and, in best practice, up to five years in the future. Each contract is published with an estimated procurement start date and an estimated contract start date. Understanding these deadlines are crucial for planning your sales strategy.

Using data from April 2023 pipelines, we've analysed 370 digital contracts to create a procurement calendar and help you effectively time your approach in 2024.

When do digital contracts go to market?

Our analysis reveals that Q2 and Q3 of 2023 were the most popular dates for digital contracts to begin procurement processes, with 106 contracts valued at £1.96b published in this period.

How long is the procurement process?

The typical procurement cycle for these major contracts range from 3 to 18 months. In the early stages, buyers focus on defining their requirements, which may include issuing Prior Information Notices (PINs) and collaborating with suppliers to refine the process.

With the majority of the pipeline already in the procurement phase, it's vital for suppliers to focus on contracts beginning their procurement process in Q4 2023 or beyond. Moreover, with pipeline updates in April 2024 expected to unveil new opportunities for that year, staying informed of these developments is crucial for suppliers.

When are digital contracts awarded to suppliers?

The previous graph visualised pipeline contracts by procurement start date, helpful for suppliers’ planning their sales pipeline. We now turn to contract start date to understand how many of these major contracts are expected to be awarded in 2024.

Across central pipelines, 121 contracts worth a combined £2.5b are expected to start in 2024. For suppliers looking to win major contracts next year, we recommend focusing on these contracts which are early in the procurement cycle and have not yet selected a supplier. These contracts represent the most competitive opportunities for new suppliers.

Stotles strategic recommendations

Based on our analysis above, we believe there are three key approaches successful suppliers must adopt to have a chance at winning major central government contracts. These include:

1. Early engagement:

The data suggests a strategic advantage in targeting contracts that are in the early stages of procurement, particularly those initiating in late 2023 but starting well into 2024.
These represent opportunities where suppliers still retain a competitive chance against incumbents.

2. Forward planning‍

For long-term success, spend 2024 focusing on 2025.
Within our dataset, we've already identified 24 digital contracts worth a combined £1.1b are expected to start in H1 2025
Identify which of those contracts are going to market in 2024 and engage with buyers well ahead of contract start date.

3. Staying informed:

Regular updates from Stotles, especially around the upcoming April 2024 pipeline update, are vital.
The updated central government pipeline will highlight new opportunities for the latter part of 2024 and early 2025.

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Target popular routes to market

Now we have outlined what the government is procuring and when they are going to market, this section highlights the planned routes to market across digital pipeline contracts worth a combined £8.9b.

Utilise the insights below to strategically target the key commercial agreements for 2024 and beyond, setting a strong foundation for the next section, where we'll delve into individual buyer roadmaps to help you identify potential target accounts.

Frameworks

Frameworks are the overwhelming popular choice for government buyers planning to go to market for digital contracts, accounting for 63% of the total opportunity. This trend highlights a deliberate shift by the central government towards Crown Commercial Service’s (CCS) technology frameworks, such as TePAS, DALAS, and G-Cloud, which are especially popular among central authorities.

To help your bid team prepare for this opportunity, here are key dates for major upcoming CCS frameworks in 2024:

G-Cloud 14: Applications for G-Cloud 14 are expected to open in Spring 2024, with the aim to go live on November 8th.
Digital Resource Capability (Digital Outcomes 7): Applications are expected to open in September 2024, with an aim to go live by March 2025.
Technology Services 4: Applications are expected to open in September 2024, with an aim to go live in March 2025.

Dynamic Purchasing Systems

Despite accounting for only 2.5% of the opportunities in this dataset, Dynamic Purchasing Systems (DPSs) are a viable choice for buyers, particularly for smaller-valued contracts not included in our dataset.

Suppliers specialising in niche markets and offering unique services should monitor the following DPSs, which are expected to be renewed in 2024:

For more information on important DPSs or Frameworks, read our partner Advice Cloud's “Unlock the Door to 2024” white paper here.

Tenders

While tenders represent a smaller portion of contracts compared to frameworks, the 53 contracts published are collectively worth £2.7 billion, offering a lucrative opportunity for suppliers who can effectively monitor and capitalize on these openings.

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Stotles provides the essential tools and insights needed to excel in this competitive arena. Discover how Stotles can help you track, analyse, and respond to tender opportunities, ensuring you don't miss out on these valuable contracts.

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Explore buyer roadmaps

The UK government's Digital Future Roadmap presents a comprehensive list of the top 75 public services earmarked for digital transformation. Each service is assigned to a specific ministry, which is tasked with elevating these services to a "great standard" by 2025.

This roadmap is not just a plan; it's a vital tool for understanding the government's digital priorities and identifying the ministries at the forefront of these transformative initiatives. To help you pinpoint opportunities within central government target accounts, we've used procurement pipelines to identify how each ministry has been investing into the digital transformation of their priority services.

In this section, we spotlight five key ministries, showcasing relevant procurement into their priority services and highlight emerging contracts for 2024. For a comprehensive view of the top 75 services, view the table below.

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Top 75 Public Services	Ministry Responsible
1. Apply for a Civil Service job	Cabinet Office
2. Civil Service Learning	Cabinet Office
3. Manage my Civil Service pension	Cabinet Office
4. UK security vetting service	Cabinet Office
5. Apply for a standard individual export licence	Department for Business and Trade
6. Ask the export support team a question	Department for Business and Trade
7. Learn to export	Department for Business and Trade
8. Register and apply for The King’s Awards for Enterprise	Department for Business and Trade
9. Find an apprenticeship	Department for Education
10. Find school and college performance	Department for Education
11. Get information about schools	Department for Education
12. Get into teaching	Department for Education
13. Use the National Careers Service	Department for Education
14. Register and apply to list energy efficient products	Department for Energy Security and Net Zero
15. Register as a biomass supplier, submit reports and payment	Department for Energy Security and Net Zero
16. Register for an exemption from minimum energy efficiency standards for landlords	Department for Energy Security and Net Zero
17. Register for combined heat and power quality assurance and submit installation data	Department for Energy Security and Net Zero
18. Register to use the Emission Trading Registry and report greenhouse gas emissions	Department for Energy Security and Net Zero
19. Apply for rural grants and payments	Department for Environment Food and Rural Affairs
20. Buy a rod fishing licence for England and Wales	Department for Environment Food and Rural Affairs
21. Create a UK catch certificate for fish and shellfish	Department for Environment Food and Rural Affairs
22. Get an export health certificate	Department for Environment Food and Rural Affairs
23. Notify authorities of imports of products, animals, food and feed	Department for Environment Food and Rural Affairs
24. Provide livestock information	Department for Environment Food and Rural Affairs
25. Register or renew a business as a waste carrier, broker or dealer	Department for Environment Food and Rural Affairs
26. Register or renew waste exemptions	Department for Environment Food and Rural Affairs
27. Sign up for flood warnings	Department for Environment Food and Rural Affairs
28. Apply for a voter card	Department for Levelling Up, Housing and Communities
29. Register to vote	Department for Levelling Up, Housing and Communities
30. Apply for a driver digital tachograph card	Department for Transport
31. Apply for your first provisional driving licence	Department for Transport
32. Book a theory or practical driving test	Department for Transport
33. Drive in a clean air zone	Department for Transport
34. Manage your vehicle operator licence	Department for Transport
35. Record MOT test results	Department for Transport
36. Renew your driving licence	Department for Transport
37. Tax your vehicle	Department for Transport
38. Apply for and manage Pension Credit	Department for Work and Pensions
39. Apply for Bereavement Support Payment	Department for Work and Pensions
40. Apply for Personal Independence Payment	Department for Work and Pensions
41. Claim Access To Work	Department for Work and Pensions
42. Claim Attendance Allowance	Department for Work and Pensions
43. Claim Carer’s Allowance	Department for Work and Pensions
44. Claim Employment and Support Allowance	Department for Work and Pensions
45. Claim Funeral Expenses	Department for Work and Pensions
46. Claim Jobseeker’s Allowance	Department for Work and Pensions
47. Claim Maternity Allowance	Department for Work and Pensions
48. Get your State Pension	Department for Work and Pensions
49. Manage your Child Maintenance case online	Department for Work and Pensions
50. Send your fit note	Department for Work and Pensions
51. Apply for and manage Universal Credit Full Service	Department for Work and Pensions
52. Use the travel advice service	Foreign, Commonwealth and Development Office
53. Apply for Child Benefit	HM Revenue and Customs (HMRC)
54. Check income tax	HM Revenue and Customs (HMRC)
55. Claim a PAYE repayment from HMRC	HM Revenue and Customs (HMRC)
56. Pay your Self-Assessment	HM Revenue and Customs (HMRC)
57. File your Self-Assessment	HM Revenue and Customs (HMRC)
58. Add & update your contact details with HMRC	HM Revenue and Customs (HMRC)
59. Apply for a UK passport	Home Office
60. Renew, update or replace an adult passport	Home Office
61. Apply for a Standard Visitor visa	Home Office
62. Apply for Skilled and Student visas	Home Office
63. Apply to the EU Settlement Scheme	Home Office
64. Find out if you can apply to settle in the UK	Home Office
65. Request a basic DBS check	Home Office
66. Register a birth or death	Home Office
67. View and prove your immigration status	Home Office
68. Apply for a deceased person’s military record	Ministry of Defence
69. Apply for legal aid	Ministry of Justice
70. Claim compensation if you were the victim of a violent crime	Ministry of Justice
71. Create and use a lasting power of attorney	Ministry of Justice
72. Calculate release dates for a prisoner	Ministry of Justice
73. Assess a person’s risk and need in custody and community	Ministry of Justice
74. Apply for student finance	Student Loans Company
75. Manage my student loan balance	Student Loans Company

The Home Office

Priority public services

In the "Digital Future Roadmap", the CDDO has pinpointed nine priority public services that the Home Office must ensure reach a "great" standard by 2025.

Digital procurement for priority public services

Suppliers can use procurement pipelines to identify contracts aimed at accelerating the digital transformation of these services by 2025. To help you identify potential opportunities, we have showcased examples of three major contracts below.

1. Digital product family for the "Register a birth or death" service:

2. A person Centric Data Platform for the "View and prove your immigration status" service:

3. Technical Architecture for "Migration and Borders" services:

Opportunities for 2024

Looking ahead, the Home Office is procuring for 16 digital contracts (£1b) with expected contract start dates in January 2024 or later. We recommend focusing your efforts here to identify potential opportunities.

For a full view of Home Office's pipeline, click here.

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