The public sector is undergoing a period of significant transformation, driven by new legislation, technological advancements, and evolving priorities.
At our 2024 GX Summit, Sam Winterbottom, Public Service Director at Gamma, and Hollie Rose Hodgson, Head of Account Management at Tussell, explored these changes, offering deep insights into the implications of the new Procurement Act, the importance of data-driven decision-making, and the critical role of innovation and collaboration in the tech and telecom sectors.
The new Procurement Act: driving flexibility and social outcomes
One of the major topics of discussion was the new Procurement Act, which promises to reshape how public sector organisations approach procurement. Hollie Rose Hodgson highlighted the potential of this legislation to introduce more flexibility and promote social outcomes, with “really exciting things like new notice types, a supplier registry, and a department list”.
For Hollie, this will introduce a lot more flexibility around the types of procedures that can be sued. She also encourages contracting authorities to explore the guidance the government is putting out, especially as “there are some really good people pushing out the messaging, a lot of training, and procurement policy notes.”
Hollie cited a recent one that effectively enshrined in the Procurement Act a previous policy, before going on to say that “now it’s all about taking into consideration the social outcomes in your procurement activities.” Once the data come in, Hollie will be interested to see how it will transpose into action.
Hollie further discussed the challenges of turning data into actionable insights, and while the UK is a global leader in transparency, the data available often fails to serve contracting authorities effectively. She reflects on the PCR, which was the previous Act’s Public Contracts Regulation, and how it was a good piece of legislation in terms of transparency.
Even though there’s already a lot of data out there, and the UK is “miles ahead of many other countries around the world when it comes to what is published”, that data isn’t transposing into usefulness for a lot of the contracting parties involved. For Hollie, “it can feel a little bit like data for data’s sake… if you can’t answer really basic questions such as how many contracts Microsoft holds, it can get a bit frustrating.”
Data-driven decision-making: transforming procurement
Sam Winterbottom echoed Hollie’s concerns about the practical application of data, stressing the importance of making data actionable for better decision-making. He summed it up perfectly by asking “what’s the point of having loads of data if you can’t make use of it and you don’t understand what the data is telling you?”. This is why, for Sam, the services that Tussell provide to the public sector are important.
Sam also touched on the shift from MEAT (Most Economically Advantageous Tender) to MAT (Most Advantageous Tender), emphasising the increased focus on social value. He clarified this by focusing on stakeholders and their interest in companies being “more socially valuable”, noting Gamma’s increased efforts around sustainability, “our people, and what we’re doing to promote careers in tech jobs.” Those same areas are shared by the government in being of high importance.
Emerging tech trends: IoT, AI, and the ISDN switch-off
The discussion also explored key trends in the tech and telecom sectors, particularly the growing influence of IoT and AI. Hollie highlighted the significant role IoT is playing in public sector projects, noting how, in just telco, “it’s been around £2 billion for the last couple of years… wider, it’s between the £17-18 billion mark.” COVID caused a huge spike in these areas, as more technology was needed for ventures including contact centres or Track and Trace.
Hollie mentions how different parts of each market have seen different changes. After COVID, “contact centres did decline, but they’ve been rising year on year.” She also mentions the “interesting stuff with IoT, [specifically] for the telco portion, [where] IoT is now consistently around a third of the market.”
Sam then added his own perspective on the rise of IoT, particularly in the context of smart cities. There’s been a “big spike in interest in machine SIMs and what’s happening in that space… it’s all down to the push around smart cities, isn’t it?” He notes the integral role data can play in planning out how a city works, while mentioning Gamma’s own IoT organisation Fusion IoT and how Gamma is “really starting to look to expand that in the UK over the next few months and years.”
AI was another area of interest, with Hollie pointing out its growing application in local authorities. The interesting developments around AI has already prompted Hollie to start scouting around for data, particularly around operational improvements. Microsoft’s Copilot has already been making waves, but it’s also about “driving citizen services and doing things a lot more proactively.”
Another pressing issue is the upcoming ISDN switch-off, which Sam highlighted as a significant challenge and opportunity for public sector organisations. He describes the switch-off as more than just a “big trend… it’s unfortunately a cliff face”. With Openreach and Virgin Networks closing their copper networks, it’s alarming to see many customers in this space still looking to procure something and replace their copper telephone lines. For Sam, “there’s still a really big knowledge push that’s needed out there, and we’re trying our hardest.”
Cybersecurity: a growing priority
Cybersecurity has become a top priority in the public sector, and Gamma is positioning itself to meet this need through its recent acquisition of Satisnet, a managed security services company. Sam discussed the importance of cybersecurity and Gamma’s strategic focus in this area, as well as expanding these cybersecurity services into the public sector. This encouraged Sam to ask Hollie about her thoughts around the opportunity in cybersecurity, the size of the market, and how best to service it.
Hollie acknowledged the growing demand for cybersecurity services, particularly when considering recent high-profile breaches. As a growing market, “it’s becoming more and more important, whether you’re in central government—where I think it’s historically always been very large—or particularly for local authorities as well.” Hollie pinpointed Hackney and their recent cyber breach, concluding that “it’s really important that citizens’ data is being best protected 100%.”
Innovation and collaboration: essential for success
The conversation ended with a discussion on the importance of innovation and collaboration between suppliers and public sector entities. Hollie emphasised the need for proactive, outcome-focused approaches, and why staying ahead is of extreme importance. Whether it’s “driving better procurement outcomes or wanting to grow in the public sector as a supplier or partner up with other suppliers… don’t sit on your hands.”
Public sector leaders need to “really look at what other people are doing, [ask what] data [we can] utilise to make those better outcomes”. Hollie summed it up perfectly by saying that “just constantly reacting to tenders is not an efficient way of doing it.”
Sam wholeheartedly agreed, stressing the value of creativity and a focus on outcomes and what organisations wan to achieve. He urges public sector bodies to “[not] tell us the technology that you think you need to get there – just what you want to achieve… let the suppliers be really creative and innovative about how you get the things that meet the outcome.”
So, where does that leave us?
The public sector is at a crossroads, with new legislation, technological advances, and evolving needs shaping the future. As Sam and Hollie’s discussion revealed, success in this environment will require data-driven decision-making, a proactive approach to innovation, and close collaboration between suppliers and public sector entities.
Gamma’s commitment to customer experience, combined with its focus on emerging trends like IoT, AI, and cybersecurity, positions it to help public sector organisations navigate these challenges and achieve better outcomes in the years ahead.