A smarter approach to modernisation in the Public Sector
What works, what doesn’t and how to turn tech modernisation into public service transformation
Bovis
Modernisation isn't about replacing old systems with new ones. It's about rethinking how we operate, how we serve our customers, and how we prepare for the future. The journey can be challenging. But it offers incredible opportunities for growth, innovation, and transformation.
In this guide, we explore the strategies that help organisations modernise smarter, faster, and more cost-effectively. Drawing from Version 1’s experience of real-world customer projects, we look at what works, what doesn’t and how to learn from the hard-won lessons of others.
By considering our ‘nine steps to smarter modernisation’, you can de-risk change and deliver tangible business outcomes today—positioning your organisation for sustained success in tomorrow’s evolving digital landscape.
Let’s get started.
Why modernisation matters
As applications get older, they often become misaligned with business need.
IT leaders are perfectly aware of the limitations of their legacy technology. So why aren’t more doing something about it?
Skills shortages, budget and resource constraints, keeping the business operational, and the very real risks of disruption are all reasons for inertia. Anecdotally, however, the biggest barrier we see is one of prioritisation. New projects are more likely to be prioritised over modernising old because the former is assumed to deliver more business value than the latter. And that’s not always true.
As applications get older, they often become misaligned with business need. It may be a gradual process, but it’s happening…all the time. It’s silent and invisible—this lack of alignment only becoming apparent well after the app is past breaking point. Then the costs really start ramping up.
20–30% _ typically increase in performance efficiency with modern technology and infrastructure.
The “why?” of modernisation
IT is seen as a strategic enabler—but it remains subject to defined (and often constrained) budgets. Growing technical debt from legacy applications means that more of that budget is being consumed just to ‘keep the lights on’. And that prevents organisations from investing in more of those new projects that will drive the business forward. In short, there’s a huge opportunity cost associated with continuing to spend money and allocating team resources on activities that don’t create value.
The benefits of modernisation are substantial. Gartner says that leaders who actively manage and reduce technical debt will achieve at least 50% faster service delivery times to the business1
McKinsey estimates that companies investing in modern technology and infrastructure typically see a 20–30% increase in performance efficiency 2 . This isn’t just an upgrade, rather a fundamental shift in approach—realigning applications to business need to remove friction and drive efficiency.
In public sector organisations, for example, the objective is making citizen services more straight forward and accessible, accelerating the pace of change and surfacing insights from data to do it. Businesses of all sectors strive to increase operational efficiency, mitigate risk and leverage the potential of artificial intelligence.
_ AI can cut operational costs by up to 30%.
Modernisation is essential to achieving these goals.
Of course, modernisation is a daunting task. It requires a careful balancing act between maintaining existing operations and transforming them. It’s not as simple as flipping a switch and becoming digital overnight—it’s about thoughtfully rethinking how the organisation operates at every level. And it’s not just about the tech. In fact, with culture and process in the mix too, the technology is often the easy bit.
Change brings challenges, but maintaining the status quo has hidden costs. As above, existing systems and applications become less aligned to business needs. Supportability issues, maintenance costs and technical debt grow. The older the system, the bigger the risk from cyberattack. The existing environment may not be broken, but it’s not always fit for purpose and may not deliver the agility and innovation needed today and tomorrow.
If standing still isn’t an option, how do we move forward? Let’s find out.
1 How to Assess Infrastructure Technical Debt to Prioritize Legacy Modernization Investments, Gartner
2 Unlocking Success in Digital Transformations. McKinsey & Co
Challenges in modernisation
Modernisation can seem straightforward—out with the old, in with the new. Of course, it’s not that simple, and it’s not a guaranteed ticket to success. Across industries, from the public sector to financial services, modernisation efforts are riddled with pitfalls and challenges that often leave organisations wondering where it all went wrong.
Lack of business alignment
Too often, modernisation is considered a technical exercise rather than an initiative aligned to solving business needs. As such, many projects deliver limited value and the lack of ‘transformational change’ frustrates business users. If this has been the organisation’s experience, it’s hardly surprising budget holders will be resistant to assigning more budget to future projects.
The culture clash
McKinsey’s research shows that organisations failing to address cultural resistance to change experience up to a 50% failure rate in their modernisation initiatives. Modernisation is about more than swapping out old tech for new—it’s a shift in mindset and operations. Consider the evolution in methodologies: waterfall is out and agile is in. However, agile can be a hard sell— especially where there’s reluctance to fully embrace ‘new’ practices. Even in more progressive organisations, the speed of change can create friction between departments. Product teams may champion agility, while their technical counterparts may cringe at the term— assuming it means rushed implementations that compromise security and compliance.
Up to 50% _ failure rate in their modernisation initiatives.
The inertia of legacy systems
Many organisations, especially long-established like traditional banks or government departments, are hindered by legacy systems. These aren’t just outdated technologies—they represent outdated ways of thinking and operating. Transitioning to modern, agile, and digital-first approaches requires a complete overhaul of how work processes. This transformation is challenging, particularly when fear of change and a lack of clarity on the path forward can create substantial resistance.
Hidden costs of lost knowledge
Current systems are often quite poorly understood, there’s a lack of documentation and, in many cases, (particularly in core banking systems) the software engineers who developed and maintained these systems have left the industry. All of which leads to additional complexity and cost, and missed or misinterpreted functionality that has to be remediated.
The capacity to modernise
Don’t underestimate the need for new skills. Modernisation requires more than just new tools and technologies—it demands new skills and ways of thinking. You need people who understand modern development practices, like DevOps, microservices, and containerisation. The catch, however, is that finding and retaining this talent can be a major challenge. Companies have learned that investing in continuous training and development is crucial for keeping their teams up to date with the latest trends and technologies . But it’s not just about the right people, the right processes—be they business or change management—are needed, too. Without investing time here, even the best-laid technology modernisation plans can fall apart.
Learning from the mistakes of others
Learning from your mistakes is invaluable. Learning from others, before you make your own, is even better. We’ve brought our experts together who’ve navigated the complexities of modernisation. They’ve seen what works, what doesn’t and they’re here to share their insights to help inform your own modernisation strategies and implementations.
Deliver the mission, not the technology
By Ali Bovis Digital Advisor - Public Sector
Done right, modernisation has the potential to revolutionise how government departments operate, streamline services, and deliver better outcomes for citizens. However, as we’ve seen time and time again, things rarely go off without a hitch. Learning from these missteps is crucial if we’re to truly harness the potential of modernisation.
Having worked across the UK public sector for over ten years, one of my biggest learnings is that modernisation relies on three things: people, process and culture. Public sector modernisation efforts often run aground because they focus too much on the technology and not enough on the people and process that surround it. You can have the latest apps and systems in place, but if the teams using them aren’t on board, then your project is dead in the water. The move to agile methodologies is a prime example. It’s a great idea in theory: who wouldn’t want to be nimbler and more responsive? In practice, however, it can be a tough sell. People and process are hard to change, especially when it threatens to upend long-standing established ways of working.
The key lesson here is to involve everyone from the get-go, invest in training, and be prepared to take people on a journey. Change isn’t a one-time thing—it’s an ongoing process that requires patience and persistence. More importantly, it’s about communication. Leaders must clearly articulate why changes are being made, how they will benefit citizens and employees, and what support will be available to help them through the transition. Too often, modernisation is rolled out with little planning for these factors, leading to confusion, frustration, and a lack of buy-in. When modernisation feels imposed rather than collaborative, it’s likely to fail.
Public sector modernisation efforts often run aground because they focus too much on the technology and not enough on the people and process.
It’s also crucial to recognise how political changes can significantly influence public sector modernisation efforts. The new Labour government’s focus on comprehensive reforms across key sectors such as healthcare, education, and justice presents both challenges and opportunities. Political changes can often lead to uncertainty, with modernisation programs being paused, redirected, or even stopped altogether. For tech leads, this means having to think creatively and find innovative ways to continue modernising within shifting constraints. However, while some may face the challenge of doing more with less, others may find unexpected opportunities, such as newly available funding aligned with fresh political priorities. By staying adaptable and aligning their strategies with the current policy landscape, IT leaders can either navigate through the lean times or seize new opportunities to advance their modernisation efforts.
Another hard-won lesson is about balancing ambition with realism. There’s always a temptation to go big—to promise sweeping changes and rapid transformations. But that kind of ambition can be a double-edged sword. In the rush to modernise, many projects bite off more than they can chew. The result? Missed deadlines, blown budgets, and a lot of frustrated people. A more measured approach is often the best approach. Start small, learn fast, and scale up gradually—and deliver those in-flight projects on time.
Of course, maintaining project timescales requires careful consideration of people, processes, and technology. It’s essential to have the right team with the necessary skills, to follow effective processes (such as agile methodologies), all while ensuring proper security and governance measures are in place.
Flexibility is key in any modernisation effort. If a strategy isn’t working, don’t be afraid to change course.
Adequate testing throughout the project is also crucial to avoid delays. From a technology standpoint, using the right tools and platforms, like managed cloud services or AI-driven development tools, can help accelerate development and reduce operational overhead. By focusing on these key areas, projects are more likely to stay on track and meet their deadlines.
Remember, it’s okay to pivot. Flexibility is key in any modernisation effort. If a strategy isn’t working, don’t be afraid to change course. This kind of adaptive thinking can save time, money, and resources in the long run. But being flexible doesn’t mean being unfocused; it’s essential to keep the end goals in sight and ensure that all changes are aligned with the broader mission.
Finally, don’t let technology lead the conversation. Too often, we get caught up in the excitement of new tech and lose sight of the real goal — improving outcomes. Technology should be an enabler, not the endgame. Focus on the problem you’re trying to solve and let that drive your decisions. And always, always keep the user in mind. Whether it’s a citizen accessing public services or a civil servant using a new tool, their experience should be at the heart of everything you do.
Modernisation for modernisation’s sake is a recipe for disaster. The tech should always serve the mission—not the other way around.
Transforming for the future
By John Bolger
Global Lead for Application Modernisation and Integration
Modernisation often carries different interpretations. While moving systems to the cloud is a significant step, it doesn’t alone deliver true transformation. Real modernisation involves aligning technology initiatives with business goals, whether by updating or replacing applications to meet evolving needs. This alignment ensures that each technological shift adds tangible business value.
Involving the business from the outset is crucial for success. Collaboration helps align IT decisions with strategic goals, making technology a driver for broader outcomes. A simple lift-and-shift approach, while a practical start, won’t make applications more efficient or scalable long-term.
True modernisation is all about realigning applications to business needs. So, take the time to analyse your applications, understand their dependencies, and figure out how to best optimise them for the cloud. It’s not just about where your applications run…but how they run and what the business can do with them.
We’re also seeing a move away from managing multiple isolated applications, with companies now focusing on creating reusable, composable capabilities that act like building blocks for IT solutions. This approach emphasises adaptable, modular architectures and a more productfocused mindset. It’s about being agile, reducing duplication of effort and enabling reusable capabilities to be consumed quickly and easily. This way, you’ll keep initiatives aligned with evolving business needs—moving away from one-time projects towards continuous transformation.
Modernisation can’t just be a lift-and-shift exercise. It’s a great starting point but stop here and you’ll only achieve limited business value.
Modernisation is often seen to align applications with today’s needs or technology. However, with the rise of Generative AI, customer expectations are evolving at an extraordinary pace and this shift requires a focus not only on current
Modernisation made real
It may not always be straightforward, but when modernisation initiatives are tied to business goals, the impacts can be significant.
Tackling
border checks for
the Department of Agriculture, Environment, and Rural Affairs (DAERA)
DAERA needed a robust solution to manage the increased volume of goods requiring checks at Northern Ireland ports due to new trading arrangements. Facing potential supply chain disruptions and food shortages, the solution also needed to comply with EU regulations and manage the surge in consignment controls. Version 1’s agile delivery team developed the Common Health Entry Document Inspection Platform (CHIP) in just four months. The system integrates with the EU's Trade Control and Expert System (TRACES) and handles all consignment controls, ensures compliance and reduces processing times.
Outcomes:
Ensured compliance with EU control regulations, reducing the risk of food shortages and supply chain disruptions
Achieved annual savings of £5.8 million in processing time alone
Enhanced scalability and reliability
Portfolio modernisation through app modernisation for National Highways
National Highways aimed to modernise their application portfolio to support critical business services and ensure the safe management of England’s highways. Version 1 partnered with them to migrate the legacy systems to a secure, scalable, and cloud-based environment. After a successful migration, the focus shifted to enabling digital transformation for key systems using cloud-native solutions, including bespoke .NET development and low-code Power Platform approaches.
Outcomes:
82% _ faster incident updates and closures
50% _ faster incident creation
150% _ faster reporting
What’s in the toolkit?
Modernisation is all about delivering more business value. It requires a multi-stage approach and takes advantage of:
AI and automation
AI and automation can be transformative; eliminating manual, repetitive tasks that drain resources and slow progress. By integrating AI and automation, you can streamline operations, reduce errors, and free up your team to focus on driving the business forward. AI can enhance efficiency and customer interactions through intelligent chatbots , virtual assistants and now agents, providing instant, personalised responses. Applying AI and automation to software developments and testing can significantly reduce deployment time. Indeed, McKinsey found that leveraging automation and AI can cut operational costs by up to 30%.
Cloud computing
We’ve been talking about the cloud for years, but now migrating isn’t enough. If organisations treat cloud like an extension of their old data centre (and many do), they’re likely to miss out. Modern cloud strategies are about tapping into true flexibility and scalability. With cloud-native applications and managed services, you can focus on what really matters—innovating and growing your business—while cloud does the heavy lifting. Infrastructure costs are reduced, scalability is enhanced and, by truly optimising cloud, you’ll enjoy lower operational costs (because everything’s easier to manage).
McKinsey reports that companies using cloudnative applications enjoy a 50% reduction in time to market for new products, and a 20% reduction in IT costs 4 .
Low code frameworks
With the rise of low-code and no-code development platforms, creating new apps and tools has never been easier. Gartner estimates that by the end of 2024, low-code application platforms will account for over 65% of all application development activity3. Your team, whether seasoned developers or business users, can quickly build and deploy applications without complex coding. This doesn’t just speed up development—it unleashes creativity, solves problems and helps you respond to market changes fast. Suddenly, that IT backlog becomes a thing of the past.
Data modernisation
A major trend and an undoubted catalyst for change. By modernising your data infrastructure with cloud-based platforms you’re not just efficiently storing information— you’re able to transform it into actionable insights by taking advantage of AI and machine learning, These platforms provide a single source of truth, upon which to deliver real-time analytics that help you make smarter decisions, spot trends before they become trends, and personalise customer and citizen experiences like never before. They also offer better data governance, security, and accessibility, all essential for meeting the rigorous compliance requirements now facing both public and private sector organisations.
Nine steps to smarter projects
To ensure modernisation efforts are successful and deliver meaningful value, consider these key recommendations:
01
Align to business needs. Obvious but not always acted on, and not just the most pressing today. As much as possible, aim to anticipate the future direction of the organisation, the industry and the evolution of technology to futureproof your initiatives.
02
Start with clear objectives. Define your goals from the outset. Whether it’s improving efficiency, reducing costs, or enhancing user experience, having clear goals will guide your decisions and keep the project focused.
03
Prioritise people and culture. Modernisation is as much about people as it is about technology. Invest in training and change management to ensure everyone understands the benefits and is equipped to use new systems effectively. Foster a culture that embraces change and encourages collaboration across all levels of the organisation.
04
Embrace incremental changes. Avoid the temptation to overhaul everything at once. Start with smaller, manageable projects that allow you to test, learn, and adapt. This approach reduces risk and helps build confidence and support for larger initiatives.
05
Focus on user-centric design. Keep the end user in mind at every stage of the modernisation process. Whether it’s an employee using a new tool or a customer interacting with a new service, their experience should drive design and implementation decisions.
06
Balance ambition with realism. Set realistic timelines and budgets based on a thorough understanding of the existing systems and the challenges involved. Be honest about what can be achieved and don’t overpromise. Ensure there is room for flexibility to adapt to unexpected changes or challenges.
07
Ensure strong governance and oversight. Establish clear governance structures to oversee the modernisation process. Regularly review progress against objectives, budgets, and timelines to ensure the project stays on track. Effective governance also helps in making timely decisions to resolve any issues that arise.
Leverage best practices and lessons learned. Don’t reinvent the wheel. Learn from both your own experiences and those of others. Review case studies, engage with industry experts, and adapt proven strategies to fit your organisation’s unique context.
Speed up with modernisation accelerators. Tools like Version 1’s cloud modernisation accelerators can significantly reduce the time and effort required for modernisation projects. These accelerators provide standardised blueprints and best practices that speed up development, lower the risk of errors and cut costs.
Accelerating change with Version 1
Version 1 is a trusted leader in application modernisation and integration, helping organisations navigate the complexities of digital transformation. With over 28 years of experience, we prioritise understanding our clients' unique challenges and aligning technology investments with their strategic goals. And we continually assess and develop our approaches and technologies to learn from, and accelerate, customer success through:
Business-led modernisation
Our approach starts with a deep understanding of your business needs, ensuring every modernisation effort aligns with strategic objectives and delivers tangible outcomes.
Proven methodology
Our structured process supports organisations end-to-end—from business assessment to delivery to continuous improvement.
Cutting-edge technology
We leverage advanced technologies— including AI, cloud-native solutions, and automation—to drive efficiency and innovation, enabling organisations to stay ahead in a competitive landscape.
Unique modernisation accelerators
Our cloud modernisation accelerators significantly reduce time to value, offer a robust foundation for digital transformation, and de-risk the process.
Trusted partnerships
As Microsoft’s Global Partner of the Year for Modernising Applications in 2023, we have a proven track record of delivering high-impact modernisation projects across multiple industries.
Extensive expertise
With a team of over 1,500 skilled developers and over 1,000 certifications, we offer a breadth and depth of capabilities across multiple technology stacks, ensuring we can meet any modernisation challenge.
We know that modernisation’s not just a technical endeavour. It’s a strategic business initiative. That's why we focus on building strong partnerships with our clients, working closely with them to foster a culture of continuous improvement and innovation. We’re not just a service provider, we’re here to help you transform your business—in whatever way we can.