- Microsoft and Crown Commercial Service agree on a five-year deal to enhance digital transformation in the UK public sector.
- Discounted access to Microsoft 365, Azure, and AI-driven tools like 365 Copilot will improve public service delivery and boost innovation.
What happened
Microsoft and the UK Government have officially signed a five-year agreement to boost digital transformation efforts within the public sector. The deal, set to begin on November 1, provides public sector organisations with discounted access to Microsoft’s wide array of cloud-based services, including Microsoft 365, the Azure platform, and for the first time, the company’s generative AI offering, 365 Copilot. This collaboration aims to drive innovation, enhance collaboration across departments, and improve public services for UK citizens. As part of the agreement, Microsoft will also invest in skilling programs to upskill the government workforce, addressing the growing demand for AI capabilities.
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Microsoft UK CEO, Clare Barclay, emphasized the significance of AI in driving both public sector transformation and economic growth, stating, “AI technologies present a unique opportunity to transform public services and fuel the UK’s economic growth.” She added that the partnership with the UK Government would help create a “world-class, digital-first public sector infrastructure,” leading to better services and greater opportunities for the entire nation.
The deal is expected to streamline operations, improve service delivery, and accelerate the adoption of cutting-edge digital technologies across the UK public sector.
Why this is important
The Microsoft-UK Government deal marks a critical step in modernizing the country’s public sector infrastructure. The incorporation of cloud services and generative AI tools like 365 Copilot offers the potential to significantly increase efficiency, improve interdepartmental coordination, and elevate the quality of public services provided to citizens. More importantly, this collaboration highlights how AI technologies can serve as a powerful catalyst for long-term economic growth.
Research conducted by Public First, in partnership with Microsoft, emphasises this potential, revealing that faster adoption of digital tools could add an impressive £550 billion to the UK’s GDP by 2035. This massive opportunity hinges on the seamless integration of cloud technologies, AI-driven tools, and a skilled workforce capable of harnessing these innovations. In response, Microsoft is launching extensive skilling initiatives and certifications aimed at ensuring public sector employees are equipped to thrive in this increasingly digital landscape.
Roger Gonourie, Chief Commercial Officer at Crown Commercial Service (CCS), explained the broader impact of the agreement, stating, “This agreement will support eligible public sector organisations to pursue their digital transformation and innovation ambitions, by enabling them to benefit from leveraging the size and scale of the UK public sector.” Gonourie highlighted the importance of removing barriers to growth and ensuring that digital transformation drives tangible benefits for the public.
The partnership also signals the UK Government’s commitment to closing the skills gap in AI and other digital competencies, paving the way for a future where public sector services are more efficient, adaptable, and responsive to citizen needs. By facilitating a transition to AI-enhanced tools, this collaboration not only improves day-to-day government functions but also positions the UK as a leader in the global digital economy.
