New Digital Hub for Technology Procurement
17-06-2025
The UK government has announced a new digital marketplace that will change the way the public sector buys technology.
Plans are for the digital hub, which is still in early development, to help public sector organisations be able to benefit from collective buying power. The hub will also use AI to match organisations with suppliers based on their needs.
A recent State of Digital Government report showed that although many public sector organisations use similar tools, they source and negotiate contracts on an individual basis. The new digital marketplace will give users the ability to rate and review the technology they use, allowing other users to benefit from shared collective experiences.
What Could This Mean for Tech Suppliers?
- More opportunities: The platform is being designed to open the market to more UK tech firms. The target is for government contracts to increase the use of small businesses by 40% within 3 years, so more public sector opportunities could begin to appear for smaller tech businesses.
- Prioritising customer experience: In view of the increased exposure a rating and review system brings to customer experience, this is likely to need to become a higher priority in delivering services.
- An expectation of lower businesses: Part of the objectives of the digital marketplace is to give public sector organisations more bargaining power when negotiating tech contracts. This may mean needing to reduce costs to keep or win contracts.
The new digital platform is being created under the revised Procurement Regulations. A “digital playbook” detailing best practice in purchasing decisions is also being developed to help with public sector procurement.
Tech businesses who are, or would like to be, involved in public sector contracts will want to keep an eye on developments.