The IT skills organisations require today are changing rapidly and the public sector, more than anyone, is feeling the effect. Digital Transformation projects have subjected IT departments to new requirements and tasks they have little experience of.

The Public Sector IT skills gap

Research commissioned by Trustmarque: ‘The CIO in 2017’ engaging the views of 200 UK CIOs and senior decision makers found that almost half of CIOs in the public sector are anticipating future disruption and restructuring as a result of cloud.  It’s no surprise then that public sector organisations are further feeling the pinch of the impending IR35 income tax changes set out by HMRC.

IR35 whose responsibility?

IR35 affects all contractors who do not meet HMRCs definition of ‘self employed’ and shifts the responsibility for compliance from the contractor to a public body or recruitment agency. The changes will come in to effect from April 6th 2017.

Uncertainty however over what these changes mean for individuals is driving contractors away in their droves according to sourced information from The Register.  The future of many digital transformation projects is therefore questionable as an impact of contractors moving toward markets not currently affected by legislative changes.

Trustmarque’s Head of Central and Secure Government; David Woods said “Government does not have the skills in house to tackle digital transformation projects, but that said, accepting an increase in rates from incumbent contractors is just not an option for many with cash strapped, streamlined programmes”.

He added; “As cloud adoption continues to rise, more and more Public Sector organisations are feeling the need for different skills, skills that are currently provided by contractors.  They will see their IT departments take on a different role – that of a broker of services, not just a builder of systems.  IR35 is forcing their hand – accept the legislative changes, upskill staff or look to a specialist partner to fill the skills gap”.

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As a specialist IT partner with over 30 years’ experience of delivering outcomes for the public sector, and as Microsoft’s number one public sector partner, organisations are increasingly working with us to take advantage of a flexible supply of people with the required skills.

For more information on how we can support you through the challenges of IR35 contact us direct on 0845 2101 500 or email

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