Legacy systems hampering UK public sector digital progress

New research from SolarWinds indicates that most public sector organisations in the UK have not yet fully achieved digital transformation.

Based on a survey of 100 IT decision makers within the UK's public sector, the report found that only 6% of respondents believe their organisation has fully integrated digital transformation initiatives throughout their operations.

Approximately 42% of those surveyed said their digital transformation efforts are well underway, while another 40% indicated that progress has been limited since beginning their transformation journey.

While 60% of IT professionals in the public sector say that advancing digital transformation remains a leading priority, the research highlights ongoing challenges faced by organisations under increasing government pressure to modernise systems and services.

A continuing reliance on legacy systems was underscored as a significant barrier to progress. A substantial 59% of public sector IT leaders surveyed said they still depend on traditional, on-premises data centre environments. Furthermore, 42% expect this will continue over the next three years.

The report also draws attention to a persistent shortage of digital skills among staff. Over half of respondents (58%) named workforce skill and talent gaps as the main obstacle to successful digital transformation. The shortfall is particularly pronounced within the Ministry of Defence and security sectors, where 73% of those surveyed identified skills gaps as the greatest challenge facing digital initiatives.

Security and financial constraints were also singled out as major difficulties. 51% of public sector IT leaders cited data privacy and security concerns, while nearly half (49%) mentioned limited budgets as impediments to effective modernisation.

The integration of artificial intelligence remains a relatively low priority for most organisations. Although the UK government views AI as central to enhancing public services, only 30% of respondents said that integrating AI was a leading concern for their organisation.

In contrast, over half (51%) of those surveyed saw observability—the ability to monitor and understand the performance of digital systems—as extremely or very important for accelerating digital transformation efforts.

"These findings show that while digital transformation is high on the agenda, many public sector organisations are still only at the starting line. The research also echoes broader concerns across the sector that transformation efforts are being held back by legacy mindsets and severe underinvestment," Richard Giblin, Head of Public Sector and Defence at SolarWinds, commented.

"Skills gaps, legacy infrastructure, and limited budgets are creating a plethora of challenges—and without focused investment and strategic support, the gap between ambition and execution will only grow. The opportunity is there, but we need to act now to equip public sector teams with the tools, training and visibility they need to move forward with confidence."

"The public sector plays such an important role in the daily lives of millions––from healthcare and education to social services and public safety. Ensuring the modernisation of these essential services isn't just about efficiency, it's about delivering better, faster and more accessible experiences for all."

The survey, conducted in partnership with Market Connections in late 2024, included public sector IT decision makers and influencers from across Federal, State, Local, and Education sectors in both the UK and the US. It evaluated confidence levels, concerns, and barriers associated with IT management and digital transformation, as well as the uptake and use of artificial intelligence.