The British government is launching a digital platform to revolutionize technology purchasing in the public sector, enhance efficiency, and increase participation from small businesses.
The United Kingdom has announced the creation of the National Digital Exchange (NDX), an innovative digital platform aimed at transforming how the public sector acquires technological tools. According to the Department for Science, Innovation and Technology, the new system could yield annual savings of up to £1.2 billion for taxpayers and modernize public investment, which amounts to £26 billion a year in technology.
The platform, currently under development, will function as a centralized “marketplace” where hospitals, schools, and government departments can compare, rate, and review technological products before purchasing them. One of the key objectives is to eliminate prolonged bureaucratic processes and inefficient purchasing decisions that have historically led to cost overruns and failed acquisitions.
An AI and Transparency-Based Model
The NDX will integrate an artificial intelligence engine capable of suggesting the best solutions and providers for each need, thereby reducing decision-making times from months to hours. Additionally, the platform will offer nationally negotiated prices and access to pre-approved agreements, streamlining the process for both buyers and suppliers.
One of the most innovative aspects of the system is the capability for public users to rate and review purchased products and services, in a format similar to an app store, thereby promoting transparency and collective learning within the British public sector.
Support for Tech SMEs
The British government also aims to open the market to more local tech companies, setting a goal of increasing the participation of small businesses in public contracts to 40% over the next three years. The State of Digital Government report had warned about the lack of coordination in negotiating technology contracts: over 200 health organizations and 320 local councils negotiate independently, thereby losing bargaining power and savings opportunities.
A Regulatory and Cultural Shift
The platform will be developed within the framework of the UK’s new public procurement regulations, which promote more efficient, open digital purchasing aligned with best practices. At the same time, a “digital playbook” is being created to guide public officials in technology decision-making, with criteria for social value and long-term sustainability.
The Minister for AI and Digital Government, Feryal Clark, emphasized that the goal is “to eliminate months of bureaucracy, failed technology purchases, and wasted money,” making the NDX an example of the Government’s Change Plan: “Reducing waste, fostering innovation, and betting on British technology to provide better public services.”
Pilot Tests and Sector Collaboration
The announcement comes just days before London Tech Week, where the digitalization of public services will be one of the central themes. The government has also initiated pilot tests to fund AI and technology projects with an experimental approach, encouraging innovation with reduced budgets and rapid scaling in case of success. The development of the NDX is being conducted in close collaboration with sector associations like techUK, to ensure that the platform meets the needs of both public buyers and suppliers.
Source: gov.uk