The first of its kind ‘one-stop-shop’ could save taxpayers £1.2billion a year.
The National Digital Exchange is part of Labour’s Plan for Change, and will allow teams in all departments of the civil service to access pre-approved technology deals. Prices have been negotiated nationally, at lower prices than would be possible with individual organisations and groups attempting to finalise their own contracts.
Marking a major shift in how the public sector does business, AI will help match requirements with specific suppliers and products, expediting the procurement process and bridging any potential knowledge gaps. As a result, it is hoped there could be 40% more government contracts with small UK-based companies within the next three years, making the market less skewed in favour of major global corporations.
‘We’ve all heard the stories – months of red tape, tech that doesn’t deliver, and money wasted. That’s not good enough for the people we serve,’ said Minister for AI and Digital Government, Feryal Clark. ‘The National Digital Exchange aims to change that. It will make it faster, fairer, and focused on what works – with real reviews, upfront pricing and smart AI to match buyers with the right suppliers in hours.’
Downing Street’s State of Digital Government Review was published earlier this year, and raised serious concerns about procurement in the public sector. Under the existing framework, all 320 local authorities are responsible for negotiating contracts, putting them in a significantly weaker position compared with central government economies of scale. Greater collaboration between organisations, departments and teams was recommended.
Image: Bruno Kelzer / Unsplash
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