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How to bridge the digital capability gap

Government

How can we help build digital capability in government and address the digital skills gap? June’s senior-level panel discussion, hosted at Opencast HQ as part of the 2025 TechNExt festival, explored barriers and challenges – as well as ideas and solutions for building future capability. 

Our panel

Sarah McMann - Chief Digital Product Officer, HM Revenue and Customs (HMRC) 

Robert Craig - Chief Operations Officer, Skills Builder Partnership 

Kara Kane - Head of Design, Public Sector Reform, Test and Learn, Cabinet Office 

Cate Kalson - Chief People and Operations Officer, Opencast (moderator

Three people seated on a sofa during a panel discussion, with a large screen behind showing event details and a coffee table in front with signs, glasses, and a bottle.
A woman in a black jacket sits on a chair holding a piece of paper

Building capability is a journey

Building digital capability is a key priority for government departments looking to deliver the modern, efficient public services that citizens need. Opencast’s TechNExt discussion focused on positive solutions with examples of what works, as well as looking at the key challenges facing government. 

Opencast’s Chief People and Operations Officer Cate Kalson, moderating the discussion, offered a definition of ‘capability’ as “the ability to deliver well in a task or in a role through a blend of skills and operational knowledge”. 

Building digital capability is a journey for any organisation in and beyond government – and to illustrate the scale of the challenge and the resources involved, Sarah McMann, Chief Digital Product Officer at HMRC, set out the experiences of the department over the past 15 years.  

Sarah, who has experience in both private and public sectors, oversees more than 600 digital services and products that support HMRC. She said the solution for HMRC was to focus not on the technology but to drive organisational change and “move from a programmatic funding model to building sustainable teams and capability to drive continual improvement.” 

She said that “in terms of capability, we understand what capability we need today – but we're always looking out for tomorrow, particularly with generative AI.” 

HMRC works hard to build the capabilities its existing workforce, she said. “With 80,000 employees we need to understand, harness and nurture them,” she said. They’ve introduced a technology fast track, apprenticeships and capability boot camps. “We've heavily focused on things like cyber security, enterprise and solution, architecture, and business analysts. Where we see a shortage, we'll start to deploy these boot camps in earnest,” she said. 

Asked what worked in fostering a culture of learning and innovation, Kara Kane, Head of Design, Test, Learn and Grow at the Cabinet Office, and Robert Craig Chief Operations Officer at Skills Builder Partnership, took different perspectives. 

Kara said it was vital that teams understood exactly what was expected of them, operationally and strategically, and to have agile teams that were autonomous and able to make their own decisions. 

“Communities of practice are core to this, as is bringing people together around a shared purpose,” she said. “Often there are a lot of similarities in our work, and there's so much we can share and reuse, collaborate and critique each other's work.” 

Taxonomy perspective

Robert approached the culture of capability question from a taxonomy perspective. “We’ve heard about the importance of behaviours, knowledge and experience and we’ve also got the skills component,” he said. “What often gets overlooked are those highly transferrable essential skills that you need to successfully apply those skills and acquire new ones.” 

He said that research had shown people with higher levels of skills – such as adapting, problem solving and creativity – were the first to adopt latest technologies such as AI. 

Kara agreed, saying if companies or organisations didn’t focus on essential skills the consequences would be huge, particularly for the wellbeing of the workforce. She said it was vital that organisations made space for the development of essential skills. 

The conversation turned to the implications for other parts of an organisation outside of digital delivery, when digital strategy became fundamental to organisational strategy, looking at the impact on policy and investment, Sarah cited the government’s recent spending review, which she said was the first one to perceive technology as an enabler across the whole enterprise. 

“We’re still working in a very programmatic way, but there is a recognition that we need to shift the way we work,” she said. “There’s a huge desire to move to a more agile way of working. We need the whole ecosystem to fundamentally change.” 

“We’re looking at things from an enterprise perspective and we’re working in multi-functional teams with representatives from across the organisation to look at things such as enterprise customer relationship management, new contact centre infrastructure and a new corporate financing system… That's our starting premise, but it starts to move HMRC away from very functional working being much more multifunctional in nature.” 

Building essential skills

Turning to the practical skills and other factors people needed to stay at the forefront of their chosen sectors, Cate asked what factors underpinned successful digital-first workforces. 

Robert said it wasn’t just about money, though he noted that big tech companies like Meta were attracting engineers with huge sign-on deals. “There are plenty of other factors that predict whether someone is going to leave,” he said. “These include flexible working and the opportunity to build their skills.” 

Cate widened the discussion to include the challenges for attracting and retaining digital capability talent in government. 

Kara said pay was an obvious challenge, but there were also issues around applying for a job within government. “It's a whole art form, and people that do it well are successful and people that have never done it before are often blocked out of the system,” she said. 

She said many people within GDS said it was the people and the culture that kept them in their roles. Sarah agreed that this was also often the case at HMRC, and people often said they were there “because they wanted to do something altruistic.” 

Panel discussion with four people seated on chairs and a sofa, one person speaking with hands raised. A banner in the background reads “you up to new possibilities.” A table in front holds a glass of water and a sign.

Supply chain challenge

The panel emphasised the role of the supplier base in building capability across government.  

Sarah observed that “we can’t do this transformational journey without the support of our supply chain,” she said, adding that partnerships were key to the approach rather than being about supplier management or providing software. 

Referencing Opencast’s report on growing digital skills in government, Kara said there was a continuing need for suppliers to join and sometimes lead communities of practice. “That’s where all of the skill sharing and upskilling happens... Talking about their work and sharing actively has just been incredible.” 

Asked for the one development that gave the panellists reason to be positive, Sarah said she was excited by the overall journey HMRC was on. “It’s going to be painful and it’s going to take strong leadership – but when we get this right it won’t just be great from a customer experience. It’ll be great from an employee experience as well.” 

Kara said new roles and teams within her organisation gave her reasons to be optimistic. “We’ve been doing some test-and-learn in multi-organisational, multidisciplinary teams across government. I'm excited about how we evolve the standards and practices and frameworks.” 

Robert replied that Skills Builder Partnership had gone from a starting start to working with 1.8m people over the last year, and that continued growth and its impact on social mobility excited him. “The cost of low levels of essential skills in the UK is about £22 billion a year,” he said. “It's a really big burden on the economy, but also people's well-being. People who are better at speaking and listening and working together are happier.” 

Opencast’s ‘Building digital capability’ discussion took place on 18 June 2025 in Newcastle, as part of TechNExt 2025.   

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© Opencast 2026

Registered in England and Wales

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