The great legacy escape: How outdated systems and processes still hold government back
Having worked in the space for over 15 years, we know that legacy systems and manual processes often hamper the critical work government organisations do.
We’ve seen how they’re costly, inefficient, unreliable, difficult to change, fail to meet user expectations, and stifle innovation. In the national security space — where we have most of our experience — the significant security risks these systems and processes create are unacceptable.
The “State of Digital Government Review” emphasised the pain. It said we face “deep systemic challenges” around legacy and under-digitisation in government organisations.
Many government organisations still depend on unsupported, unpatched legacy systems. And the problem is growing.
The review said the number of high-risk, critical systems in central government increased by 26% from 2023 to 2024.
Meanwhile, under-digitisation also persists. According to the review:
- only half of public services are digitised
- very few services avoid manual processing altogether
- many have a “digital veneer” but rely on inefficient and costly manual backend operations
It gives examples of how His Majesty’s Revenue and Customs (HMRC) handles 100,000 calls daily, Driver and Vehicle Licensing Agency (DVLA) processes 45,000 letters daily, and Department for Environment, Food and Rural Affairs (Defra) manages over 500 paper form-based services.
Legacy processes — a barrier to a modern, joined-up digital government
Here’s what under-digitisation and legacy systems mean in practice:
- High costs and inefficiency: If staff rely on physical forms, enter data by hand, or have cumbersome approval processes, it costs more, slows service delivery and increases error rates.
- Unreliable and difficult to operate: They are challenging to maintain, rely on a shrinking pool of knowledgeable staff to operate, while the lack of software support leads to frequent failures.
- Security and compliance risks: Outdated tech lacks basic security features, while paper-based processes are hard to track, secure, or audit— exposing agencies to data loss, theft, and security breaches.
- Siloed, fragmented data and systems: Manual systems cause data duplication, inconsistencies, delays and ultimately cause poor data quality. The information also isn’t easily shareable between systems and teams.
- Limited reporting and lack of data-driven insights: Low quality or locked-away data hinders effective reporting and prevents organisations from making data-driven decisions.
- Frustrating user experience: Cumbersome and convoluted systems with poor usability and accessibility create a challenging experience for the end user.
- Barriers to innovation: Legacy systems and manual processes prevent opportunities to use new and innovative technologies, like AI.
Find out: How we helped government organisations digitise, automate and integrate AI
The opportunity: £45 billion in potential savings
The good news is the potential is huge. The review estimates that just digitising public services could unlock over £45 billion in annual savings.
It says: “Missed opportunities for digitised services have a cost for people, businesses, and the UK economy. Efficient, connected digital services can help transform the UK economy and support the government’s goal of driving economic growth. Analysis indicates that over £45 billion per year, representing 4-7% of public sector spend, in unrealised savings and productivity benefits could be achieved through full potential digitisation of public sector services.”
The review adds that the opportunities mainly stem from:
- process simplification
- AI-driven automation of manual tasks
- adoption of low-cost digital channels
- and reduced fraud through compliance automation
The message is clear. Clinging on to legacy systems and making do with manual processes isn’t optional anymore. The costs, dangers and missed opportunities are too high.
Modernisation isn’t just about technology — it’s about delivering better outcomes.
It provides the foundation for efficient, reliable, secure services — and paves the way for wider innovation like AI.
What’s next?
- Our next blog in the series explores why spreadsheets and paper are key blockers to digital transformation — and what you should do to get rid of them. Subscribe for updates on the blog series and to find out more details about our upcoming event.
- Find out more about our approach to legacy modernisation and process automation.
- If you’d like to know how we’ve helped government organisations modernise and automate their legacy processes — or explore how we could help you — feel free to get in touch with me.
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