How the UK public sector could benefit from strategic channel partnerships

The UK public sector has an expensive technology problem, costing roughly £45 billion a year, by its own estimates. That’s taxpayer money poured into patching up outdated systems, renewing old contracts, and keeping legacy software on life support.

Years of piecemeal procurement, long-term vendor lock-ins, and underinvestment in digital skills have left the government with a tangle of systems that are costly to run and near-impossible to adapt or modernise. As a result, many departments are stuck in models that block innovation and drain productivity.

Fixing the problem isn’t about buying better software; it’s about building smarter partnerships that actually make technology work.

Across the government, there’s growing recognition that the old “one big supplier does everything” model simply doesn’t work. More departments are now teaming up with a mix of partners – prime contractors, small specialists, and integration experts – to deliver specific outcomes together.

When managed properly, these partnerships bring in broader expertise, speed up delivery, and help departments meet government targets on SME spending and transparency.

A smarter route to transformation

For years, the government has treated huge IT contracts as the safest route to digital transformation. In reality, they’ve often done quite the opposite, because when one supplier controls everything, there’s little motivation for change, costs rise, and flexibility disappears.

Channel partnerships make this easier because they build on existing structures that the government already has. They mean that departments don’t need to start from scratch: they can bring together approved suppliers listed on Crown Commercial Service frameworks such as Cloud Compute 2 – used for cloud infrastructure and services – or DALAS, which focuses on modernising and replacing legacy applications.

These frameworks act as pre-cleared supplier lists, meaning projects can get moving quickly without the red tape of a full procurement. A typical cloud modernization, for example, might combine a lead systems integrator with a cybersecurity partner, a FinOps consultancy, and a small data firm, all collaborating under one coordinated plan.

This way of working cuts the risk of vendor lock-in and gives smaller, more innovative companies a seat at the table. It also helps departments meet new rules under the Procurement Act and the National Procurement Policy Statement, which require them to set and report SME-spend targets by 2028.

In plain terms, it means that the government can move faster, spend more shrewdly, and still meet its goals on compliance and social value, while opening the door to a more competitive and capable supplier market.

Delivering better outcomes through collaboration

Partnerships only work when they’re built around clear outcomes. A strong channel arrangement starts with one accountable lead, a transparent supply chain, and a shared goal, whether that’s to move away from legacy systems, improve citizen services, or cut cloud costs.

Each partner brings its own strength: the cloud team handles infrastructure, the data specialists turn information into insight, cybersecurity experts safeguard systems and ensure compliance, and the experienced designers make services easier to use.

You can already see this model in action. The NHS Federated Data Platform, introduced in April 2024 to safely connect information across the service, making it easier for staff and clinicians to do their job, has brought together cloud, analytics, and assurance partners under one framework to create a shared data backbone while keeping departments in control of their own systems. The result wasn’t just better technology, but a governance model that could adapt as needs changed.

The local government is following a similar route. Contact-centre upgrades, for example, now often involve cloud telephony providers working alongside CRM firms, content designers and behaviour-change specialists, improving response times and citizen experience without stepping outside existing procurement rules.

Strategic channel partnerships move the government away from one-off digital projects and towards genuine service transformation. They let technology do what it should: free up people’s time, support better decisions, and deliver measurable public value.

Making partnerships work for the public good

Collaboration on this level and scale brings its own risks. Without transparency, supply chains can become tangled; without good governance, a single supplier can end up calling the shots; and without real SME participation, inclusion risks becoming a box-ticking exercise.

To make this work, partnerships need a clear structure and accountability. The best ones set out who’s responsible for what, agree on shared goals, and report openly on any progress. They also build in wider commitments, like supporting small businesses, creating local jobs, or reducing environmental impact, so that public money is seen to deliver more than just a technical outcome.

When this happens, channel partnerships don’t just make government more efficient; they make it more innovative and trustworthy. They help departments adopt new technologies, including AI, in a way that’s transparent and safe. And they reposition procurement from buying bits of tech to building joined-up systems that actually work for people.

The public sector’s digital problems are never going to be solved by one supplier or one piece of software. They’ll be solved by smarter collaboration, where the government sets the vision and relies on a network of trusted partners to bring it to life.

Strategic channel partnerships may not solve every problem, but they give the government a way to make technology work as it should – for people to use, not bureaucracy.