Shift 1: Going Direct
Government departments are increasingly buying technology directly from product vendors and hyperscalers, bypassing traditional SIs. Vendors argue this “saves money and removes the disintermediary layer” created by integrators, while enabling departments to build internal capability and foster long‑term relationships. This approach mirrors private‑sector practice, where large enterprises often manage SaaS platforms themselves..
However, the model is not without challenges. Hyperscalers see themselves more as utility providers, not integrators, and buyers need clarity on where their capabilities must compensate.
Shift 2: AI Is Coming
AI is rapidly disrupting technology provision. Government procurement processes need to be more agile to keep pace with innovation, particularly as AI introduces new demands around data governance, integration, and accountability. Traditional procurement cycles - slow, specification‑heavy, and rigid - risk holding departments back from benefitting fully from emerging technologies, and hold suppliers, both large and small, from engaging effectively.
To adopt AI effectively, government must rethink not only the tools they buy but also how they buy them.
Shift 3: The Right Tools
Outdated procurement frameworks and contracts increasingly hinder progress. Our current tools were designed around old delivery models and do not reflect modern cloud adoption, cost‑management needs, or cross‑platform interoperability.
Modernising procurement tools is essential. Without updated frameworks, departments struggle to manage cloud services effectively, control spend, or ensure that new technologies integrate properly across government.
Shift 4: Navigating Vendor Dominance
A shrinking pool of major suppliers means greater exposure to vendor lock‑in. As departments become more dependent on a handful of hyperscalers and large SaaS providers, retaining flexibility becomes harder.
Strategic planning, clear exit pathways, and a strong focus on interoperability are key to maintaining balance. Supporting smaller providers also plays an important role in protecting the market from over‑concentration and preserving innovation, whilst also potentially developing sovereign capability.
Shift 5: Commodities vs Products
A critical distinction must be made between commodity services and complex platforms. Treating everything the same leads to confusion, inefficiency, and poor outcomes.
Commodity services - especially those resembling utilities - can be simplified, standardised, and procured in a streamlined fashion.
Complex platforms, however, require a lifecycle approach that recognises their long‑term evolution, integration needs, and ongoing capability demands. Buyers that differentiate effectively will procure more intelligently and avoid costly missteps both pre- and post deal
A Sector at a Turning Point
These five shifts show a public‑sector procurement environment that is moving at pace. Departments are striving to build capability, modernise their approach, and adapt to a world dominated by platforms, cloud services, and rapidly advancing AI.
The opportunity is significant: to reduce friction, deliver better value, and secure technologies that are fit for the future. But the risk is equally clear. Without modern frameworks, stronger capability, and strategies that reduce dependency on dominant suppliers, departments may struggle to keep up with the scale of change.
This moment represents a chance for government to reset - to adopt approaches that are more agile, more strategic, and more aligned with how technology evolves today. The direction is set; the challenge now is execution.
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Talk to our expert, John Thompson