09 Apr 2024
by Hari Candadai

U.K. public sector IT: Is legacy software the real problem?

Legacy software has become synonymous with IT overspending and underperformance in the UK public sector. Reflecting on the numbers the press and internal advisories report, it’s easy to understand why. Agencies spend a combined £2.3B each year supporting their legacy solutions to simply keep the lights on, a figure representing almost half the government’s overall IT spend.

But there’s a fine point here that is easy to miss. Legacy software itself isn’t really the problem; transitioning away from these systems — the time, cost, and prioritisation of such projects — often leave organisations in legacy limbo. Several agencies have a requirement to keep these business-critical systems operational and have bought into the myth that their only choice is between vendor maintenance or decommissioning.

And yet reducing the large legacy software budget and freeing up resources, time, and money can allow the public sector to invest more strategically on digital transformation projects that will deliver significant benefits to both internal and external customers, as well as stakeholders.

The factors behind legacy software costs

Public sector IT systems are vast, interconnected, and dictated by bureaucratic processes that touch every part of the software’s lifecycle. Supported technologies like mainframes and the software and middleware that run on them manage and store data on a massive scale, making it difficult to find cost-effective alternatives that operate at the same capacity.

This inertia slows innovation, yet it also adds to the cost of keeping the current software in place. Maintenance and security become more costly to provide as necessary skills that support it vanish from the market, all while vendor support contract expenses rise. When migration isn’t technically or financially feasible, public institutions often think there is no other option but to shoulder the costs.

What role do vendors play in legacy software costs?

Many of the problems and costs of legacy software come from the tactics and prices large vendors impose as the vendor-buyer relationship matures. Support contract price increases, which tend to increase by exorbitant amounts the further the product is from implementation, are one such example. In the public sector and regulated industries like utilities, aggressive product bundling and license audit tactics can further create overspending.

Large vendors themselves have been accused of using their singular status as technology and support providers to create overcharges institutions feel they can’t avoid – for example, The Guardian reports one large company supporting UK emergency services charged over £1B in “excess profits […] above what would be expected” to continue access to a deprecated network.

What choices does the public sector have around its legacy software?

Many public sector agencies are comfortable maintaining and operating their legacy software day-to-day; outside support is more of an insurance policy or regulatory requirement. For these institutions, being able to counteract stiff support renewal cost increases might be all it takes to justify keeping legacy products.

In other cases, institutions might be more willing to keep their legacy software if the products supported ongoing modernisation efforts. Thanks to the skills gap, they might not be aware that the same products can often be modified for greater interoperability and performance. Third-party software maintenance providers can introduce changes primary vendors won’t be keen to suggest, extending the life of the software in question without hampering modernisation.

The public sector’s legacy software challenges are complex, but not unsolvable. Private industry’s role in helping resolve them is clear — provide options that go beyond the standard, increasingly pricey, primary vendor’s options.


Heather Cover-Kus

Heather Cover-Kus

Head of Central Government Programme, techUK

Heather is Head of Central Government Programme at techUK, working to represent the supplier community of tech products and services to Central Government.

Prior to joining techUK in April 2022, Heather worked in the Economic Policy and Small States Section at the Commonwealth Secretariat.  She led the organisation’s FinTech programme and worked to create an enabling environment for developing countries to take advantage of the socio-economic benefits of FinTech.

Before moving to the UK, Heather worked at the Office of the Prime Minister of The Bahamas and the Central Bank of The Bahamas.

Heather holds a Graduate Diploma in Law from BPP, a Masters in Public Administration (MPA) from LSE, and a BA in Economics and Sociology from Macalester College.

Email:
[email protected]
LinkedIn:
https://www.linkedin.com/in/heather-cover-kus-ba636538

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Ellie Huckle

Ellie Huckle

Programme Manager, Central Government, techUK

Ellie joined techUK in March 2018 as a Programme Assistant to the Public Sector team and now works as a Programme Manager for the Central Government Programme.

The programme represents the supplier community of technology products and services in Central Government – in summary working to make Government a more informed buyer, increasing supplier visibility in order to improve their chances of supplying to Government Departments, and fostering better engagement between the public sector and industry. To find out more about what we do, how we do this and how you can get involved – make sure to get in touch!

Prior to joining techUK, Ellie completed Sixth Form in June 2015 and went on to work in Waitrose, moved on swiftly to walking dogs and finally, got an office job working for a small local business in North London, where she lives with her family and their two Bengal cats Kai and Nova.

When she isn’t working Ellie likes to spend time with her family and friends, her cats, and enjoys volunteering for diabetes charities. She has a keen interest in writing, escaping with a good book and expanding her knowledge watching far too many quiz shows!

Email:
[email protected]
Phone:
020 7331 2015
Twitter:
@techUK,@techUK
Website:
www.techuk.org,www.techuk.org
LinkedIn:
https://bit.ly/3mtQ7Jx,https://bit.ly/3mtQ7Jx

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Annie Collings

Annie Collings

Programme Manager, Cyber Security and Central Government, techUK

Annie joined techUK as the Programme Manager for Cyber Security and Central Government in September 2023. In this role, she supports the Cyber Security SME Forum, engaging regularly with key government and industry stakeholders to advance the growth and development of SMEs in the cyber sector.

Before joining techUK, Annie was an Account Manager at a specialist healthcare agency, where she provided public affairs support to a wide range of medical technology clients. She also gained experience as an intern in both an MP’s constituency office and with the Association of Independent Professionals and the Self-Employed. Annie holds a degree in International Relations from Nottingham Trent University.

Email:
[email protected]
Twitter:
anniecollings24
LinkedIn:
https://www.linkedin.com/in/annie-collings-270150158/

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Austin Earl

Austin Earl

Programme Manager, Central Government, techUK

Austin joined techUK’s Central Government team in March 2024 to launch a workstream within Education and EdTech.

With a career spanning technology, policy, media, events and comms, Austin has worked with technology communities, as well as policy leaders and practitioners in Education, Central and Local Government and the NHS.

Cutting his teeth working for Skills Matter, London’s developer community hub, Austin then moved to GovNet Communications where he launched Blockchain Live and the Cyber Security and Data Protection Summit. For the last 3 years he has worked with leaders in Education across the state and independent schools sectors, from primary up to higher education, with a strong research interest in technology and education management.

Email:
[email protected]
Phone:
07891 743 932
Website:
www.techuk.org,www.techuk.org
LinkedIn:
https://www.linkedin.com/in/austin-spencer-earl/,https://www.linkedin.com/in/austin-spencer-earl/

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Ella Gago-Brookes

Ella Gago-Brookes

Team Assistant, Markets, techUK

Ella joined techUK in November 2023 as a Markets Team Assistant, supporting the Justice and Emergency Services, Central Government and Financial Services Programmes.  

Before joining the team, she was working at the Magistrates' Courts in legal administration and graduated from the University of Liverpool in 2022.  Ella attained an undergraduate degree in History and Politics, and a master's degree in International Relations and Security Studies, with a particular interest in studying asylum rights and gendered violence.  

In her spare time she enjoys going to the gym, watching true crime documentaries, travelling, and making her best attempts to become a better cook.  

Email:
[email protected]

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Authors

Hari Candadai

Hari Candadai

SVP, Global Marketing and Thought Leadership, Origina