Local economic development

For digital services, there will always be a question of whether to build or buy: is it more effective in the long run to build a totally bespoke service from scratch, or better to buy an off-the-shelf solution that’s already build and can be more readily integrated and maintained.

To develop the local digital economy, the ideal scenario would be for the local authority and local digital players to partner and co-create sustainable digital services, with input from citizens as well. However low digital literacy and / or resourcing at the city level, coupled with a digital ecosystem often still in its infancy, can lead to local authorities deferring to large private firms to develop digital solutions. Major benefits are speed and economies of scale – products tend to be ‘off the shelf’ rather than built from scratch, and it can mean cities will be better-placed to share tools between them. Otherwise there is a real risk of losing energy and money by duplicating the development of similar tools. However this means more longer-term maintenance costs, less capability is developed within the local authority, and products are less tailored to meet local need.

Local authorities would be best-placed to first look at developing their own internal capacity and digital systems, to become better buyers and co-creators of digital products and services, more discerning customers, and better equipped to maintain the services over time.