The UK government’s decision to allocate £366 million to modernize its core systems is a major step forward in addressing inefficiencies that have long plagued outdated infrastructures. Legacy systems, while functional decades ago, are no longer suited for the demands of a connected and agile economy.
Here’s the play: SAP is stepping up to the plate with a £246 million contract to deliver a decade-long SaaS solution. At the same time, Deloitte is leading the charge on technical transformation and systems integration under a £120 million, five-year contract. Together, they’re the architects behind this next-generation shift, replacing aging on-premises systems like SAP ECC 6.0, which is set to lose mainstream support by 2027.
“Going cloud-based, the government avoids throwing money into temporary fixes and builds a foundation for efficiency and scalability.”
This move aims to future-proof critical systems. Departments like HMRC are turning software into a service, making sure they remain adaptive to changing requirements.
The Unity Program: Centralized cloud-based framework
Let’s talk Unity. This program is all about bringing order to chaos by consolidating finance, HR, procurement, and payroll systems across HMRC, the Department for Transport, and MHCLG. Instead of each department running its own disconnected processes, they’ll now operate on a shared, cloud-based service powered by SAP S/4HANA.
What makes this move compelling is its focus on standardization, bringing more capacity, streamlined operations, and a system that can handle future growth. The Unity Program aims to achieve consistency across departments, which simplifies operations and reduces the risk of errors and inefficiencies.
Pooling resources for this centralized model isn’t only concerned with convenience, it also has a strategic focus. Individual upgrades would have cost an extra £90 million. Unity leverages collective power to save costs while setting the stage for an infrastructure that’s adaptable and robust. This is a complete reimagining of how government departments interact with technology.
Cost savings and long-term ROI
Here’s where the numbers speak louder than words. The UK government projects £585 million in benefits over 15 years from this transformation, a return of over £700 million in today’s terms. That’s an outcome any CFO would applaud.
The logic is simple: legacy systems are expensive to maintain, and the end-of-life deadline for SAP ECC 6.0 was a ticking time bomb. Migrating to SaaS eliminates the need for costly interim fixes, cutting down redundancy and maintenance costs. The core driver here isn’t only to save money, but rather to make money. A streamlined, centralized system means better resource allocation, faster decision-making, and more efficient processes across the board.
Going cloud-based, the system is future-ready, able to scale with demand rather than crumble under pressure. The long-term benefits are undeniable—£90 million saved immediately, and operational gains that will continue to pay dividends for over a decade.
Challenges and oversight risks
No ambitious project is without its challenges, and Unity is no exception. The Infrastructure and Project Authority (IPA) flagged it as a “red” risk, and for good reason. The concerns range from securing the right expertise to addressing gaps in critical resources. There are major potential bottlenecks that could slow down progress if not tackled head-on.
Complicating matters, the IPA itself is undergoing restructuring as it merges with the National Infrastructure Commission to form NISTA. While this shift aims to streamline oversight in the long run, it introduces short-term uncertainty. Without clarity on the IPA’s 2023-24 report, stakeholders are left guessing about how risks will be managed.
“The good news is that awareness is half the battle. These challenges are solvable with the right focus on recruitment, training, and proactive governance. Success will depend on how well the leadership takes on and manages these complexities to keep Unity on track.”
Digital transformation for the public sector
Through adopting a unified SaaS framework, the UK government is setting a standard for what effective digital transformation looks like—building a new model entirely.
What’s striking here is the vision: creating a system that’s adaptable, scalable, and ready for the future. Aligning multiple departments under a shared service eliminates redundancy and improves collaboration across the public sector.
The Unity Program is a template for other governments looking to leapfrog into the digital age. It shows that with the right investments, leadership, and technology partners, large-scale transformation is not only possible—it’s profitable. This is the future of governance: smarter, faster, and infinitely more connected.
