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UK rethinks offshoring ban for £8M online procurement system

(2025/10/20)


The UK government has signaled its intention to allow a supplier providing maintenance to its online procurement platform to subcontract offshore, having previously said that this was off-limits due to security concerns.

A notice said the variation to an £8 million contract would be negotiated without a prior call for competition because of the "extreme urgency brought about by events unforeseeable for the contracting authority."

If the Cabinet Office, which ran the competition to support the Central Digital Platform (CDP), an online procurement notice and tendering system, allowed the offshoring of subcontractor work, it would contradict several stipulations in the original contract, which was a call-off from a framework agreement.

[1]

In April, the Cabinet Office published a [2]notification saying that Goaco Group Ltd had been awarded the deal to support and maintain the CDP, a service where all UK contracting authorities publish information relating to procurement.

[3]

[4]

In [5]a notice published earlier this month, the Cabinet Office declared its "intention to vary [the contract] to allow for the offshoring of subcontractor resources to provide advisory support for ongoing continuous improvement activities under contract." It added that "all other actual and deliverables remain with Goaco Group Limited."

In the initial contract award, the "call-off" document specified that "all work must be completed within the UK, offshoring of any work will not be permitted."

[6]

In the document, the Cabinet Office said it had assessed the contract "as a higher-risk agreement." It stipulated that the supplier must complete the "Secure by Design Questionnaire," which says that the supplier and subcontractors "may store, access or handle government data in... the United Kingdom only." Support and development were also specified for "the United Kingdom only."

[7]'Money-saving' UK procurement platform racks up monster tab

[8]UK Cabinet Office hands stalled Microsoft migration to another department

[9]UK.gov decides tech projects worth billions are major but not 'mega'

[10]Get paid like a prime minister to tame Home Office IT chaos

A Cabinet Office spokesperson said: "No offshoring has occurred. As part of our commitment to transparency, we have published a notice to the market of the proposed change.

"Suppliers have a right to respond to the notice and provide us their views, no final decisions have been made and we would not comment further ahead of the notice deadline."

The Cabinet Office confirmed that the notice regarding offshoring was published following a request from Goaco. The company declined to comment.

Procurement professionals involved in senior government roles told The Register that failed bidders for the contract might feel aggrieved that offshoring rules had changed since they competed for the work, but would be unlikely to challenge the decision for fear of missing out on later work.

[11]

Under the previous Conservative government, projections in 2022 said ongoing running costs for the CDP would be £1.5 million a year from 2024/25 to 2030/31. The plan was to "develop new platform capability which will provide suppliers with a single portal to provide information and integrate existing systems."

Goaco's £8 million deal runs from April 2025 until April 2027, while a separate £17 million contract was awarded to consultancy EY to be a "Digital Delivery Partner for the CDP" from February 2025 to the same month in 2027, making annual costs around £4 million.

The Cabinet Office said scope of the CDP had changed under the current government: "The CDP is a wider program transforming the delivery of multiple government commercial services, including [procurement websites] Find a Tender Service and Contracts Finder." ®

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[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aPZclQ2mWQCjByKcF8ccaAAAAMM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[2] https://www.contractsfinder.service.gov.uk/notice/c08da63e-c374-4431-93a3-570671c8fbac

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aPZclQ2mWQCjByKcF8ccaAAAAMM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

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[5] https://www.find-tender.service.gov.uk/Notice/063254-2025

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aPZclQ2mWQCjByKcF8ccaAAAAMM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[7] https://www.theregister.com/2025/09/30/uk_procurement_platform_bill/

[8] https://www.theregister.com/2025/09/17/cabinet_office_microsoft_migration/

[9] https://www.theregister.com/2025/09/15/ukgov_decides_tech_projects_are/

[10] https://www.theregister.com/2025/09/10/home_office_cdio/

[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aPZclQ2mWQCjByKcF8ccaAAAAMM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[12] https://whitepapers.theregister.com/



Corrupt

elsergiovolador

Classic.

This is a logical next step. After removing domestic competition and expertise using IR35 and handing market over to multinational consultancies (exempt from the legislation) on a silver platter. Next step is to further maximise their profit by allowing them to use foreign cheaper workers, without having to engage in skilled worker visa programme hokey cokey.

NCA, SFO as usual see nothing, but collect tax payer money anyways.

Re: Corrupt

Doctor Syntax

If a bid winner declares itself unable to meet the contract conditions in this way the contract should be cancelled and awarded to the next best bidder. Otherwise we'll have an unforeseeable event next week - in fact we already have if the Cabinet Office didn't foresee this.

Surely those jobs could be done in the UK ?

JimmyPage

Who else thinks this

Re: Surely those jobs could be done in the UK ?

Doctor Syntax

Not HMG, it seems.

Re: Surely those jobs could be done in the UK ?

elsergiovolador

Yes, those jobs could be done in the UK - they used to be. But the market has been gutted. The people who actually built things have been replaced by layers of intermediaries who contribute nothing except invoices. Big consultancies now act as labour brokers, renting out human beings at vast markups to departments too “risk-averse” (wink) to hire directly.

These so-called “strategic partners” own no intellectual property, build nothing original, and shoulder no real risk. Their entire business model depends on selling other people’s expertise while pretending it’s their own. Their only real skills are networking with ministers, mastering procurement paperwork, and spinning recycled buzzwords into seven+ figure contracts.

They win tenders through proximity, not competence. Once inside, they fill the seats with the same engineers who could have been hired directly for a fraction of the cost. The result is a system where taxpayers fund inefficiency, mediocrity, and layers of management whose sole achievement is making themselves indispensable.

When even that façade begins to crack, they reach for the final excuse - “offshore delivery” - as if exporting the problem will somehow fix it. In truth, it’s the last gasp of a broken model that values margin over capability and connections over competence.

Big consultancies are not technology companies. They are empty shells with glossy branding and a minister’s phone number. Without the engineers they exploit, they are nothing.

Re: Surely those jobs could be done in the UK ?

Anonymous Coward

Of course they could...just not at the bargain bin human rights abusing rates you can get in the third world.

You've also got to think about the middle man...you can't stuff a brown envelope with cash if there is no cash to steal, our pesky workers demanding fair pay mean less profit for backhanders.

An MP won't look at you twice if you can't grease the old wheels as it were.

no offshoring

cookiecutter

no government contract should allow any sort offshoring. regardless of security issues.

I don't pay my taxes so that acenshite or inforshit et al can pay that money to someone in poland, india or south africa...

No one hates british workers more than the british government. doesn't matter whose in charge, they'll just allow the civil service to carry on with their 10 minute thinking & send all this stuff over.

if you can't find staff here... train them!

i read somewhere that 300,000 jobs/year are being offshored. At the very least on minimum wage that's over £1 billion in lost taxes & NI . if these jobs pay £50k+ here then you can double or even triple that!

then all you hear is...

"oh why is productivity so low?"

"oh no one is having kids"

"oh no one is loyal to the firm anymore"

"Gen Z are so lazy... they don't do any free overtime & wont do weekends!"

and if your CEO is a REAL fucking moron...." oh no one is buying our products anymore "

well DUH! i wonder fucking why as you send all these jobs offshore

Re: no offshoring

elsergiovolador

if these jobs pay £50k+ here then you can double or even triple that!

People don't realise that job at big consultancy that pays £50k actually costs tax payer £300k or more. There is absolutely no need for these parasites to exist. Public sector could easily pay proper salaries to workers and then have left overs if these corporations were removed from the equation.

Re: no offshoring

Anonymous Coward

Gen Z is lazy now?

I thought it was us Millennials were the lazy ones.

Re: no offshoring

Chris Leeson

Be fair - The Boomers and Gen X have all had their turn at being the scapegoat.

Modus Operandi of government at all levels

Anonymous Coward

In my village a development of 23 affordable houses was allowed (outside of the village boundary and contrary to the local plan) by the Unitry Planners because of the "extreme" need for new housing in our village. (They let slip the names of the 26 people who "needed" to move to affordable homes in the village (I did report them for GDPR), and so we asked around the village and not one of them was known to a resident. (Yes, I know we were as bad.) Do the Planners really think that the residents of a village will not talk to each other? Perhaps because no-one will talk to them in their mansions?)

2 years later the same planners have allowed a variance to now build 4 Executive Homes instead, and not helping the "extreme" need they identified for affordable housing - the reason for the initial consent.

Our PC Chair has left their position after saying in the Planning meeting that "the brown envelopes were obviously stuffed full enough."

Anon as pressure was obviously put on the PC Chair after the meeting - we believe legal threats! They have even put their house up for sale :-(

What does keeping this data in the UK mean

ColinPa

Does this mean

- all servers, are in the UK

- all backup systems are in the UK

- all data backups are in the UK

- all people who look at data - so any support people - are in the UK... so the data cannot be seen from India or Europe of America?

I worked in an international company, and we had 24* 7 support from people around the world.... I guess this will not be allowed.

The networking experts were in the US... they are not allowed to see the data.

Obviously I was either onto something, or on something.
-- Larry Wall on the creation of Perl