The UK public sector stands at a critical juncture. With £26 billion spent annually on digital technology across the public sector, yet 47% of central government and 45% of NHS services still lacking a digital pathway, the need for strategic transformation has never been more urgent. At Stoneseed, we believe Project Management as a Service (PMaaS) delivered through established frameworks offers the strategic solution public sector organisations need to navigate these challenges successfully.
The Scale of the Challenge
The recently published State of Digital Government Review paints a stark picture of the current landscape. Only 9% of major tech programmes are assessed as ‘Green’ (successful delivery highly likely), while tech programmes are 60% more likely to be assessed as ‘Red’ (successful delivery highly at risk) than non-tech projects. This underperformance comes at a significant cost – over £45 billion per year of unrealised savings and productivity benefits could be achieved through full potential digitisation of public sector services.
The challenges are multifaceted:
- Skills Shortage Crisis: Almost three-quarters (73%) of public sector employers say they do not have access to the skills required to meet their organisation’s goals
- Recruitment Failures: 50% of digital and data recruitment campaigns failed in 2024, a decline in performance from 22% in 2019
- Legacy System Burden: Around 28% of central government organisations’ technology estates are classified as legacy, with around 10-70% across police forces and around 10-50% across NHS trusts
- Fragmented Delivery: Most organisations implement their own solutions, even for common needs
Why Traditional Approaches Are Failing
The public sector finds itself caught between two failing approaches. Permanent recruitment campaigns are struggling, with 50% failing in 2024, yet organisations are forced to rely heavily on costly contractors who cost 3x their public servant counterparts (£182,000 vs £61,000 per year), accounting for around 40% of the overall cost yet only around 18% of the total headcount.
Moreover, there is an inefficient mix of ‘role types’ in the Civil Service. The digital and data workforce has an oversupply of project managers and other non-technical digital and data functions relative to the supply of technical roles. This creates a perfect storm where organisations struggle to attract the right talent while paying premium rates for contractors who may not deliver optimal value.
Despite the Procurement Act 2023 being designed to facilitate more agile procurement and delivery approaches, behavioural change across the public sector has been slow to materialise. Organisations continue to default to traditional procurement methods rather than embracing the flexibility the new legislation provides.
The PMaaS Framework Advantage
Project Management as a Service through established government frameworks addresses these challenges through a strategic, outcome-focused approach:
1. Immediate Access to Expertise
Rather than struggling with failed recruitment campaigns, organisations can access battle-tested project management professionals who understand the unique complexities of public sector delivery. These experts bring proven methodologies specifically tailored to government requirements.
2. Cost-Effective Delivery
Framework-based PMaaS eliminates the overhead costs associated with traditional procurement while providing transparent, competitive pricing structures. This approach delivers the expertise organisations need without the three-fold premium of ad-hoc contracting.
3. Scalable Solutions
PMaaS allows organisations to scale project management resources up or down based on actual demand, avoiding the fixed costs and long-term commitments that often lead to budget reallocation pressures.
4. Risk Mitigation
Professional project managers with deep public sector experience bring essential risk management capabilities, helping to move digital programmes from ‘Red’ to ‘Green’ status through proven delivery methodologies.
5. Knowledge Transfer
A structured PMaaS approach includes knowledge transfer components, building internal capability while delivering immediate results.
Framework Benefits: Speed, Compliance, and Value
Utilising established government frameworks for PMaaS procurement delivers multiple advantages:
- Accelerated Procurement: Pre-negotiated terms and conditions eliminate lengthy tender processes
- Compliance Assurance: Framework suppliers have already met rigorous government procurement standards
- Proven Track Record: Access to suppliers with demonstrated public sector delivery experience
- Value for Money: Competitive framework pricing with transparent rate cards
- IR35 Compliance: Framework structures provide clarity on employment status and tax obligations
The Strategic Imperative
The State of Digital Government Review identifies five root causes holding back digital transformation: leadership, structure, measurement, talent, and funding. PMaaS through frameworks directly addresses three of these:
Talent: By providing immediate access to senior project management expertise without the challenges of permanent recruitment
Structure: Through proven delivery methodologies that bridge organisational silos and drive standardisation
Funding: Via flexible, outcome-based engagement models that align with modern digital service delivery requirements
The Path Forward
For public sector leaders grappling with digital transformation challenges, PMaaS through frameworks offers a pragmatic, strategic solution. Rather than continuing to struggle with recruitment failures and contractor cost premiums, organisations can access the expertise they need through a model designed for government delivery requirements.
At Stoneseed, we’ve seen firsthand how strategic project management transforms digital initiatives from costly failures into citizen-focused successes. Our framework-based PMaaS approach combines deep public sector expertise with flexible delivery models.
Time for Strategic Action
The data is clear: traditional approaches to digital project delivery in the public sector are not working. With user satisfaction falling and billions in unrealised benefits at stake, the time for strategic action is now.
PMaaS through established frameworks isn’t just another procurement option – it’s a strategic imperative for organisations serious about digital transformation success.
Ready to transform your digital delivery approach?
Contact us to discover how our PMaaS solutions through government frameworks can help your organisation join the 9% of digital programmes achieving ‘Green’ delivery status.
More about Project Management as a Service from Stoneseed via Frameworks
Sources:
https://governmentbusiness.co.uk/features/best-practices-recruitment-public-sector-2025
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