Why Capacity is the Missing Link in Government Digital Transformation

Government currently spends around £26 billion each year on digital and data, highlighting the scale of its commitment to modernising public services for UK citizens. Yet despite that investment, half of recruitment campaigns for digital and data roles fail, and 47 percent of central government services still lack a digital pathway.

These figures tell the story of a system where demand for digital services is outpacing capability. Departments know what they need to deliver, but too often, they lack the skills within their teams to get there.

Embedding Skills and Confidence in Every Partnership

Hippo’s delivery model centres on the idea that government projects should leave a lasting legacy – not just in the form of services, but in the skills and confidence of the teams who build them. The consultancy places as much emphasis on capability as on delivery, aiming to ensure that civil servants can manage and evolve services independently once external support concludes.

 “Supplier partnerships should create embedded teams which give civil servants the confidence to do their jobs well. Digital confidence in all its forms is a part of this, whether introducing someone to the latest software or engaging people on AI chat models,” said Rheanna O’Donoghue, Education Delivery Director at Hippo. 

“At Hippo, we engage directly within multi-disciplinary teams at all levels, giving civil servants the tools to effectively make change in their policy areas and the understanding of who their digital partners are and how they’re going to do the necessary work. Civil servants don’t need to be doing the work themselves, but they need to have enough confidence around the digital part of their portfolio so that they can make effective decisions and understand what the consultancy is being brought in to do.”

Each engagement is built around three pillars: training, knowledge transfer and embedding skills into delivery. The approach is grounded in user-centred design and evidence-based decision making, methods that align closely with how departments are now exploring the use of AI and emerging technologies.

By working directly alongside departmental teams, Hippo’s consultants combine technical expertise with a collaborative style that helps make complex concepts accessible. The goal is to strengthen internal capability so that government organisations retain ownership of their solutions and can sustain progress over the long term.

Case Study: Upskilling with AI at the Department for Education

As part of a broader digital partnership, Hippo is delivering an AI upskilling programme aimed at creating a baseline and technical understanding of AI at no cost Department for Education (DfE). The programme is following a three-phase structure:

1.            Understanding the current state of AI knowledge across DfE

2.            Delivering targeted training in key AI areas where skills gaps existed

3.            Spotting opportunities to apply AI within live digital services

Because Hippo already understood the department’s tools, culture, and delivery methods, the learning felt relevant and actionable.

“The goal wasn’t just to talk about AI – it was to help people see how they could use it responsibly and effectively in their own work,” said O’Donoghue. “We worked alongside teams, not above them, so that capability grew as the work progressed.”

The outcome? DfE teams gained practical, AI-relevant skills while continuing to deliver on their day-to-day priorities.

“The very specific time commitment was a key part of the delivery in concert with the DfE team,” said O’Donoghue.” The AI Week was strongly endorsed by senior leaders, creating that space in people’s week to be a part of this learning and development, and the encouragement from leaders led them to understand the value and relevance to them.”         

The Benefits of Investing in Capability

Building capability delivers value at every level:

●             For Departments: Greater return on investment and lasting impact from supplier partnerships

●             For Civil Servants: Increased confidence and professional growth

●             For Services: More user-friendly, efficient and accessible citizen experiences

●             For Delivery: Faster progress and reduced dependency on external contractors

●             For Suppliers: Stronger partnerships, deeper trust and shared momentum for change

A Shared Responsibility and Opportunity

Capability building is a shared responsibility – one that unites suppliers and the civil service.

According to Hippo, procurement shouldn’t be measured purely by outputs. It should also value knowledge transfer, transparency and the embedding of skills into delivery, so that expertise doesn’t walk out the door when a contract ends.

“We don’t replace capability – we help it grow. Our role is to work alongside public sector teams, adding skills and capacity where they’re needed most,” said O’Donoghue.

For civil servants, the call to action is clear: demand capability-building from your suppliers. For suppliers, the challenge is equally important: treat capability investment not as a cost, but as an opportunity for stronger outcomes and a more confident public sector.