Organizations across the U.K.’s public sector are designing a government agenda for common platforms, data sharing and AI-ready services as the sector’s digital transformation focuses on reuse, resilience and AI readiness, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2026 ISG Provider Lens® Public Sector Services and Solutions report for the U.K. finds that the national government has developed a consolidated blueprint and roadmap that reframes digital work across departments. Public sector organizations in the U.K. are viewing digital infrastructure as a foundation for service delivery. They are favoring reuse-first and platform-based procurement approaches while facing immense pressure to demonstrate measurable improvements in service delivery, efficiency and resilience.
“Technology funding is becoming more closely tied to whether a service can show value and continue beyond an initial project,” said Mathew Hannon, director at ISG. “That is encouraging more focused investment in shared capabilities instead of repeated custom builds.”
Government departments are modernizing legacy systems, consolidating hosting environments and standardizing identity and security tools to reduce operational risks and improve cyber resilience. Procurement requirements are also placing greater emphasis on reusable components and strong security postures, with organizations expected to demonstrate security assurance through schemes such as GovAssure.
At the data and interface layer, public bodies are integrating services through the U.K. government’s One Login initiative (a shared identity platform) and an interoperable data infrastructure. These efforts aim to reduce transactional friction for citizens and support more connected service delivery.
AI adoption is proceeding cautiously, guided by procurement requirements and internal governance. Contracts increasingly require explainability, auditability and alignment with government AI guidance, while unrestricted deployments are giving way to more controlled implementations. Public bodies are seeking productivity gains without weakening public trust, ISG says.
“Public sector organizations are increasingly favoring providers that can operate within long-term product funding models rather than short-term project contracts,” said Harish B, principal analyst and lead author of the report. “Providers are expected to work in blended teams that combine departmental knowledge with product and service design capability and supplier engineering.”
The report also explores other trends in the U.K. public sector, including varied implementation speeds in different regions and between national and local organizations in the National Health Service.
For more insights into the challenges faced by public sector enterprises in the U.K., along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.
The report evaluates the capabilities of 62 providers across six quadrants: Strategy and Enablement Services (Consulting), Managed IT Services, Business Process and Other Outsourcing Services, Service to Local and Devolved Governments, Digital Transformation and Modernization Services and AI and Innovation Services.
The report names Capgemini, IBM and NTT DATA as Leaders in all six quadrants. It names Accenture, CGI, PwC and Version 1 as Leaders in five quadrants each and Infosys and Mastek in four quadrants each. Computacenter and HCLTech are named as Leaders in three quadrants each, while Atos, Deloitte and Fujitsu are named as Leaders in two quadrants each. Baringa, Capita, Cognizant, DXC, Serco, Sopra Steria and Unisys are named as Leaders in one quadrant each.
In addition, HCLTech, Infosys and Unisys are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
In the area of customer experience, NRI is named the global ISG CX Star Performer for 2026 among public sector service and solution providers. NRI earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
A customized version of the report is available from Mastek.
The 2026 ISG Provider Lens Public Sector Services and Solutions report for the U.K. is available to subscribers or for one-time purchase on this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260918857513/en/
Press Contacts:
Sarah Ye, ISG
+44 7833 567868
sarah.ye@isg-one.com
Laura Hupprich, ISG
+1 203-517-3132
laura.hupprich@isg-one.com