Dr Jon Rimmer, Chief Experience Officer at Mercator Digital, on why working with smaller, agile partners could unlock faster, more effective public sector transformation
When the government needs innovation quickly, procurement gravitates towards familiar suppliers. However, nimbler alternatives might deliver better outcomes at a lower cost.
Dr Jon Rimmer, Chief Experience Officer at Mercator Digital
NHS Test and Trace demonstrates the problem. Complex approval hierarchies and reliance on major contractors slowed progress, with multimillion-pound contracts awarded to established suppliers with minimal competition. Despite a £37bn budget over two years, the programme failed to demonstrate a measurable impact on the pandemic’s progress. As the Public Accounts Committee noted, it broke its central promise of averting another lockdown.
Where smaller partners excel
Evidence from local government shows what becomes possible when procurement focuses on capability rather than contractor scale. Local authorities are already demonstrating what’s achievable when teams work with agile partners on focused innovation:
- Hertfordshire County Council developed a robot that repairs road damage before potholes form, working directly with the University of Liverpool and robotics specialist Robotiz3d
- Westminster City Council’s Report IT service uses AI and Google Maps API to identify street issues such as fly-tipping from photographs. The average reporting time has fallen from five minutes to 88 seconds
- North Yorkshire Council deploys AI tools to help social care workers manage case notes and assessments more efficiently
These projects share common traits: defined problems, rapid iteration and capability-based partnerships. Teams moved quickly without governance layers that slow larger organisations.
Smaller firms bring distinct advantages: they compete on demonstrated expertise rather than relationships. Many use open-source technologies, aligning with Government Digital Services (GDS) interoperability principles. Leaner operations mean better value for well-scoped projects. Direct access to senior specialists means issues surface early and decisions happen fast.
The Governing in the age of AI report notes that councils, operating at smaller scale than central government, are well positioned to test innovative tools and services, effectively becoming the nation’s innovation lab for public services. But realising this potential requires proper support structures.
Making it work in practice
Smaller suppliers face barriers, including complex procurement, large-scale expectations, and stringent security standards, but delivery teams can address all of these through thoughtful programme design.
Frameworks like G-Cloud and Digital Outcomes and Specialists provide commercial foundation. Success depends on structure. Discovery phases, quick-turnaround services, and specialist components suit smaller partners well. Design workstreams that let them lead, then scale what works – a practical route to organisational buy-in.
When direct partnerships aren’t feasible, adopt principles that make smaller firms effective. Give internal teams autonomy, ownership, and defined purpose.
Evidence of momentum
Recent government initiatives suggest this shift is underway. Last year, the UK Government UK Government adopted a ‘test and learn’ initiative for public sector challenges, including specialist secondments from technology companies lasting six to 12 months. Earlier this year, that approach expanded with a ‘start-up mindset’ to test AI applications and scale successful experiments.
More concretely, GDS Local launched in November as a specialist unit focused on digital collaboration between central and local government. The initiative addresses three critical areas: developing a strategic vision for local government technology, including shared products and components; breaking down barriers to data sharing across services; and making GDS products like GOV.UK app and GOV.UK One Login actively available to local authorities.
GDS Local has already begun pilots, including AI tools and identity services, with work to identify priority use cases for the GOV.UK app with councils. It is also working with councils to identify top use cases for the GOV.UK app, creating simpler citizen access to local services.
The unit exemplifies the collaborative model needed: connecting local innovation with national platforms, ensuring regional needs inform digital strategy, and providing councils with support to focus on understanding local requirements and designing services that work for their communities.
What this means for delivery teams
For practitioners managing digital programmes, rethink how work gets packaged and partners get selected. Design delivery models that support learning rather than demanding perfection upfront. Question whether established suppliers genuinely offer the best fit.
Look at frameworks you’re authorised to use – G-Cloud, DOS – and structure upcoming work to bring in specialist capability. Where councils achieved results with agile partners, examine how they scoped those relationships.
The State of Digital Government Review identified £45bn in unrealised annual productivity benefits, with significant portions in local government. Closing that gap requires commitment to working differently.
Government digital transformation succeeds when delivery models match problems. Sometimes that means large integrators handling complex legacy systems. Often, it means focused teams solving discrete challenges quickly. Organisations succeeding with this approach aren’t waiting for permission – they’re making it happen.
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