Transformation

Google Cloud deal signals shift in legacy strategy and skills uplift for government DDaT teams

Written by James | Jul 9, 2025 10:25:16 AM

The Government has signed a strategic partnership with Google Cloud aimed at tackling long-standing legacy technology challenges across public services and building digital and AI capability across the civil service.

 

Announced today by Technology Secretary Peter Kyle at Google’s Cloud Summit in London, the agreement marks a significant shift in how departments will be supported in modernising core infrastructure, with Google Cloud offering technical expertise to help public sector teams migrate away from ageing systems and restrictive contracts that many DDaT leaders have long flagged as blockers to transformation.

The deal also includes a training commitment to upskill up to 100,000 civil servants in digital and AI by 2030. This would help deliver on the Prime Minister’s ambition for 1 in 10 officials to be in tech roles by the end of the decade, but more immediately, it could offer DDaT leaders access to a large-scale capability uplift programme at a time when demand for digital skills outstrips supply across the public sector.

The announcement comes amid growing political emphasis on using technology to deliver frontline improvements while driving efficiency, and a broader ambition to reform how government engages with major tech suppliers. Kyle used the platform to signal a more coordinated commercial posture from the centre, arguing that fragmented procurement has undermined the public sector’s ability to secure best value.

“Without deals like this, we had hundreds of public sector organisations going it alone in negotiations with big tech companies,” Kyle told the audience. “When I negotiate, I do so on behalf of the British taxpayer.”

For departmental DDaT teams, the implications are wide-ranging. Over one in four public sector systems still rely on legacy infrastructure, according to recent estimates, rising to 70% in some NHS trusts and police forces. These systems are often locked into expensive, inflexible contracts, with limited interoperability and increasing vulnerability to cyber threats.

Under the partnership, Google Cloud engineers will work with government teams to support the shift to cloud-based, secure-by-design systems. While details of how departments can access this support are still to be confirmed, officials suggest this will be aligned with wider Cabinet Office efforts to coordinate cloud migration across departments and agencies.

The agreement also opens the door to experimentation with frontier technologies. Google DeepMind will work with technical teams in government to identify opportunities to apply AI and other emerging tools, including quantum computing, to public sector challenges, from research and modelling to operational efficiency.

The accompanying skills commitment is likely to be of particular interest to DDaT directors and heads of profession grappling with recruitment gaps and delivery pressure. While many digital teams are already deploying AI in targeted areas, civil service-wide capability remains uneven, with recent research showing significant disparities in confidence, understanding, and application of new technologies.

The proposed Google Cloud training programme will run in parallel to the technical partnership, offering learning pathways for civil servants at different levels. 

A more strategic approach to supplier relationships?

Beyond the technical benefits, the deal represents a shift in tone around the Government’s relationship with major tech providers. Kyle’s call for suppliers to “bring their best ideas, best tech, and best price” suggests a broader ambition to act as a smarter, more unified buyer across the system.

For DDaT leaders, the value of this approach will likely hinge on how centrally brokered partnerships are operationalised at departmental level and whether new commercial models help or hinder their ability to deliver. But the political direction is clear: government wants more leverage in the market, and a clearer return on its technology spend.

The deal supports the delivery of the government’s digital strategy and its broader Plan for Change, which identifies £45 billion in potential public sector efficiency gains through technology adoption.