Public sector technology sourcing

Developments in technology, business practice and implementation require the technology sourcing practitioner to understand characteristics of the technology deployed, how data is used and transferred and the nature of the IT solution in the context of the sector in which it will operate. To explore the scope of further aspects of technology sourcing transactions, see:

•
Technology sourcing—IT outsourcing—overview
•
Technology sourcing—Cloud and technology sourcing—overview
•
Technology sourcing—Data protection & technology sourcing—overview
•
Technology sourcing—Technology and service integration—overview
•
Technology sourcing—Financial Services and technology sourcing—overview

The public sector and technology sourcing arrangements

Historically, the meaning and nature of arrangements referred to as ‘outsourcing’ have been characterised by the transfer of an existing undertaking operated in-house to a specialist third party supplier. Typical outsourced IT services were characterised as those considered the remit of the ‘IT department’ reflecting, for example, the provision of support services in relation to desktop IT, servers, tech support, application development, network and communications, data centre management, cybersecurity and disaster recovery.

However, reflecting the significance of IT to business generally, Gartner defines IT outsourcing as ‘the use of external service providers to effectively

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest TMT News

Data (Use and Access) Bill to receive Royal Assent on 19 June 2025

The Data (Use and Access) Bill (DUA) is set to receive Royal Assent and become an Act of Parliament on Thursday 19 June 2025. This follows its parliamentary review being finalised on 11 June 2025 and marks the culmination of nearly eight months of parliamentary procedure. Under section 139 of the DUA, most provisions will come into force as and when the Secretary of State appoints regulations. However, a limited number of provisions will come into force upon Royal Assent. This includes section 78, which relates to reasonable and proportionate searches for data subject access requests. It also includes sections 126–128 on the retention of biometric data, and schedule 16 on the grant of energy smart meter communication licences.

Commission makes AliExpress’ safety commitments binding and issues preliminary DSA breach findings

The European Commission has made legally binding a series of commitments by AliExpress to address concerns under the EU Digital Services Act (EU DSA), including measures to improve the detection of illegal products, platform transparency, trader traceability, and access to data. It has also issued preliminary findings that AliExpress breached its duty to assess and mitigate systemic risks linked to the dissemination of illegal goods. AliExpress may now respond to the findings before a final decision is taken. If confirmed, the Commission may issue a non-compliance decision, impose a fine, and require a remedial action plan.

ICO publishes draft guidance to enhance data protection in smart products sector

The Information Commissioner’s Office (ICO) has published draft guidance aimed at helping manufacturers and developers of smart products comply with data protection law. The guidance, released on 16 June 2025, outlines expectations for the Internet of Things (IoT) sector, where products such as smart speakers, fitness trackers and Wi-Fi-enabled appliances collect substantial amounts of personal data, including sensitive information.

European Commission publishes 2025 State of the Digital Decade report

The European Commission has published its 2025 State of the Digital Decade report, urging renewed action on digital transformation and technological sovereignty. The report evaluates the EU's progress toward its 2030 digital transformation targets by examining four areas: digital infrastructure, business digitalisation, digital skills, and public service digitalisation. It reveals that while some progress has been made, the rollout of connectivity infrastructure such as fibre and 5G stand-alone networks remains slow. There is an increasing uptake of AI, cloud, and big data by companies, yet more rapid progress is essential. Furthermore, only just over half of Europeans have basic digital skills, and there is a shortage of advanced ICT specialists, a situation worsened by a significant gender imbalance which restricts progress in key sectors like cybersecurity and AI. Although the digitalisation of public services has made headway, a considerable portion of governmental digital infrastructure continues to rely on providers from outside the EU. Persistent challenges such as fragmented markets, complex regulations and strategic dependence call for greater public and private investment, reforms to better integrate the single market, and eased administrative burdens. These measures could potentially boost the EU's gross domestic product by an estimated 1.8% by 2030. Member States are set to review the recommendations and discuss the future course of action, with further assessments scheduled for 2026 to ensure that targets remain in line with the evolving digital landscape and the EU's broader ambitions.