Tussell sets out Govtech Strategic Suppliers

Written by Joanna Clark

The latest version of Tussell’s Strategic Suppliers report is now live and it’s an important one to sit up and take notice of, especially if you’re a tech business that’s looking to continue, or perhaps start supplying to the public sector.

Each year Tussell analyses contracts and spending, shinning a light on the top dogs who supply goods and services to the UK Government. This year highlights COVID’s impact on the contracts won by Strategic Suppliers.

“Strategic Suppliers are those suppliers with contracts across a number of Departments whose revenue from Government according to Government data exceeds £100m per annum and/or who are deemed significant suppliers to Government in their sector.”

Spending in general has gone up this year. A fifth of that was related to the Government’s COVID response. If you’re an SME, you’ll be pleased to know that the Strategic Suppliers played a lesser role here – the bulk of those contracts were awarded to SMEs.

Here is a rundown of the headline findings:

  • The public sector spent more than £15bn on Strategic Suppliers in the 2019/20 financial year
  • The 38 suppliers on the list won 1,700 out of 44,000 contracts in 2020
  • However, their strong market positions are falling. Despite an 11 per cent increase in public sector procurement their market share remained flat
  • Central Government spent the most on Tech, with the majority coming from the MOD, Home Office, HMRC and DWP
  • 27 out of 38 Strategic Suppliers participated in the COVID response, largely by providing consulting services and IT equipment
  • While relationships between buyers and suppliers in the public sector tend to be long-lasting, The Department of Health proved this isn’t always the case. Spending almost half of its published expenditure with suppliers and consultants that it hasn’t done business with in previous years

Looking ahead, challenging Strategic Suppliers isn’t easy, but the opportunities are out there. It’s worth keeping an eye out for those contracts that are set to expire; between 2021 and 2024 there will be 1,200 contracts for services up for tender. The largest share, £1.7bn worth of contracts, is held by those suppliers in the tech sector. The Tussell Insight database can help to track these contracts. 

And, of course, a solid tech PR campaign will work wonders for increasing your profile and awareness with buyers!

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