U.K. Public Sector Advances Digital Transformation

Digitalization reshapes delivery of government services through cloud adoption, cybersecurity, AI integration, ISG Provider Lens^® report says

LONDON--(BUSINESS WIRE)-- Organizations in the U.K.’s public sector are partnering with leading service and solution providers to accelerate innovation and service delivery as part of wide-ranging modernization strategies, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider Lens^® Public Sector Services and Solutions report for the U.K. finds that both central and local government bodies are pursuing agile digital development while upgrading legacy systems and strengthening compliance and security. Despite ongoing advancements, digital maturity remains low due to factors such as persistent skills shortages, outdated infrastructure and limited budgets. Public dissatisfaction with services remains high, with productivity still below pre-pandemic levels and most citizens believing services are underfunded.

“Facing demands for greater responsiveness, public sector organizations plan to increase their budgets for transformation enabled by third-party services,” said Matthew Hannon, U.K. Public Sector lead, ISG. “The U.K. government’s digital road map is leading to deeper engagement with IT, consulting and cloud service leaders.”

Government organizations in the U.K. are expanding user-centric online platforms and improving interoperability across departments for better transparency and service delivery, ISG says. Simultaneously, they are integrating AI and advanced analytics to streamline operations, enhance decision-making and improve citizen experience. Agencies seek providers with expertise in deploying GenAI, automation and data integration solutions that can guide them through structured transformations and help them enhance productivity.

Moving from legacy software to cloud services is central to the public sector’s efforts to increase resilience and scalability, the report says. Agencies are partnering with service providers to orchestrate cloud migrations, manage hybrid environments and ensure compliance with strict security and governance standards. These efforts often require replacing outdated software to cut costs, improve interoperability and deploy citizen-facing applications faster.

With cyberattacks growing threefold in the U.K., public sector organizations are prioritizing risk management, ISG says. They are also implementing continuous threat monitoring and improving incident response capabilities. However, limited funds, persistent pay gaps and the difficulty of employing highly talented professionals continue to constrain security efforts. In response, agencies are seeking assistance in adopting secure digital platforms and structuring transformation for measurable outcomes.

“Cybersecurity has become a focal point for public sector enterprises as digital adoption expands attack surfaces and affects essential services,” said Harish B, manager and principal analyst at ISG, and lead author of the report. “Due to the sensitive nature of public data and critical national infrastructure, enterprises rely on providers’ expertise to embed security frameworks and educate them on cyber risks.”

The report also explores other technology trends affecting the public in the U.K., including ongoing struggles with fragmented governance and pressure to demonstrate cost-effectiveness.

For more insights on digital transformation-related challenges faced by public sector organizations in the U.K., plus ISG’s advice for overcoming them, see the ISG Provider Lens^® Focal Points briefing here.

The 2025 ISG Provider Lens^® Public Sector Services and Solutions report for the U.K. evaluates the capabilities of 36 providers across five quadrants: Strategy and Consulting Services, Managed IT Services, Business Process and Other Outsourcing Services, Services to Local and Devolved Governments, and Digital Transformation and Innovation Services.

The report names Capgemini and IBM as Leaders in five quadrants each. It names NTT DATA and PwC as Leaders in four quadrants each. Accenture, Computacenter, Infosys and Mastek are named as Leaders in three quadrants each. Atos, CGI, Fujitsu and Version 1 are named as Leaders in two quadrants each, while Cognizant, Deloitte, Serco, Sopra Steria and Unisys are named as Leaders in one quadrant each.

In addition, NTT DATA is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.

In the area of customer experience, Capgemini is named the global ISG CX Star Performer for 2025 among providers of solutions and services for the public sector. Capgemini earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2025 ISG Provider Lens^® Public Sector Services and Solutions report for the U.K. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens^® Research

The ISG Provider Lens^® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

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Press Contacts:



Sarah Ye, ISG

+44 7833 567868

sarah.ye@isg-one.com



Laura Hupprich, ISG

+1-203-517-3100

laura.hupprich@isg-one.com

Source: Information Services Group, Inc.