Transformation

Talent, Not Technology: the Real Constraint on Government Transformation

Written by James | Feb 27, 2026 9:27:06 AM

Government Transformation convened its first Government Leaders’ Meet-Up of 2026 at the Cinnamon Club in Westminster last night, bringing together around 70 senior officials and industry partners for an evening of discussion on the future of public-sector reform.

 

The event, supported by Counter, forms part of Government Transformation’s regular series of meet-ups held throughout the year to enable candid, cross-sector dialogue on digital, data, and service transformation.

The evening opened with a keynote from Eoin Mulgrew, Head of Digital Transformation at 10 Downing Street, titled “Move fast, fix things: The role of the No.10 Innovation Fellowship.”

Mulgrew outlined how the fellowship is supporting the major transformation programme for Whitehall, as set out in Darren Jones’ recent speech, by embedding elite technical talent into priority government challenges and accelerating delivery through agile, end-to-end problem solving.

Across the keynote, presentations, and panel discussion, a consistent message emerged: the primary constraint on government transformation is no longer technology, but talent.

Much of the discussion focused on the modernisation of core administrative machinery. Leaders described how redesigning long-standing processes such as spending controls and budgeting workflows is improving transparency, shortening feedback loops, and accelerating decision-making. While largely invisible to citizens, these reforms are unlocking system-wide productivity gains by addressing processes that have remained structurally unchanged for decades.

Alongside process reform, attendees explored new models for building digital capability within the state. A central theme was the shift from large-scale outsourcing towards strengthening in-house expertise. Participants noted that transformation efforts increasingly hinge on whether departments can sustain and evolve solutions once initial delivery teams step away.

This point was reinforced by Amul Batra, Managing Director at Counter, who argued that workforce composition is now the defining factor in public-sector digital progress. He noted that only a small proportion of civil servants are digital and data professionals, with a significant share of technology spend directed towards external contractors rather than building internal capability.

“By increasing the proportion of digital and data professionals even modestly, government can reduce contractor reliance and deliver substantial savings,” Batra said, citing estimates that strengthening in-house capability could replace thousands of contractor roles and save hundreds of millions annually.

Batra outlined an alternative model in which technologists embed within organisations with the explicit aim of becoming permanent employees. This approach, he argued, ensures continuity and institutional memory while enabling teams to maintain and evolve the systems they create. In one example, embedded teams delivered major efficiency gains in platform operations and subsequently transitioned into permanent public-sector roles to sustain and extend the improvements.

The panel discussion, “From AI Ambition to Real Impact: One Big Thing’s Next Chapter for the Civil Service,” brought together Simon Price, Director of Insight, AI & Innovation at HMRC; Matthew Clarke, Director of the Civil Service Strategy Unit in the Cabinet Office; and Julia Howes, Deputy Director for AI Adoption at the Ministry of Justice.

Panellists explored how the civil service can move beyond pilot projects to achieve measurable impact from AI, emphasising the need for clearer scaling pathways, improved data sharing, and operating models that support cross-government collaboration.

Participants also highlighted the importance of expanding the talent pipeline beyond traditional recruitment routes. Training programmes, returner initiatives, and alternative entry pathways were cited as mechanisms to address workforce shortages and widen access to technical careers in government.

Despite these advances, leaders acknowledged that many transformation barriers remain structural rather than technical. Complex governance, entrenched processes, and competing incentives often present greater challenges than system design. Successful initiatives increasingly combine policy reform, stakeholder engagement, and technical delivery from the outset.

The meet-up closed on a pragmatic consensus: government’s future effectiveness will depend on becoming a more technically fluent, capability-rich organisation. Technology will remain a critical enabler, but without sustained investment in people, even the most advanced systems will struggle to deliver lasting public value.