4.6 Under the previous Defence Information Strategy, Defence Digital intended to take more responsibility for system architecture, design and integration, and reduce its dependence on large prime contractors. However, evidence from the three digital programmes we examined indicated that the Department has failed to recruit enough people with the skills and experience required to manage the various suppliers in this way.29 Only 26% of funded delivery team posts were occupied by public sector staff in March 2021. Contractors filled 48% of funded posts, while 27% were vacant. For example, the Skynet 6 satellite programme is finding it difficult to rebuild capacity for space-based capability after the Department let its predecessor under a private finance initiative contract, thereby losing in-house capability. Delivery teams have also raised concerns that Defence Digital is not currently set up to provide programmes with the commercial support that is available to the Department's strategic suppliers.
4.7 Defence Digital programme staff told us that they suffered in comparison with other delivery agents by not having the same pay freedoms, and their main site finds it difficult to attract staff, especially as it is close to DE&S's Bristol headquarters. However, they also told us the recent experience of remote working has shown this is a viable business model which could aid recruitment. DE&S has developed its own digital strategy and it has a plan to collaborate with Defence Digital on the development of digital skills.
4.8 As part of a wider digital transformation programme, the chief information officer has developed a Strategic Workforce Plan. The objectives are to reskill and redeploy the existing workforce; recruit staff with missing critical skills; and rationalise the use of bought-in contractors, with contracts linked to outcomes. The estimated cost is £34 million over three years, with anticipated benefits of hundreds of millions of pounds. In mid-2020, Defence Digital also began a programme of programme delivery professionalisation.
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29 Skynet 6, New Style of IT (Deployed) and Morpheus (part of Land Environment Tactical Communications and Information Systems programme).