This report covers the government enterprise systems software industry in the UK.
? Technology for
The UK Government spends £17 billion pa
on ICT products and services ? more than any
other European government. The Government
is an early adopter and key driver of UK business
process and transformational outsourcing.
Dynamic growth in shared services Initiatives in personalised services
Shared services are being adopted fast by Local A major transformation in public service delivery
Government for HR, fi nancial, procurement, revolves around the concept of self-directed
revenues and benefi ts processes, especially services. For example in telecare the Department
back-offi ce but increasingly front-offi ce. Central of Health spent £80m between 2006 and 2008
Government departments also are now moving in its ?Preventative Technology Grant?.
to extend their scope in shared services.
New market in green IT
Outsourcing on the rise Both Local and Central Government expect
Government spend on outsourcing approaches to increase green IT projects as hardware
£100 billion pa (Local Government 32% and refreshes take place.
Healthcare 28%). Education is the fastest
growing spend ? the largest ever school buildings Supplier outsourcing opportunities
investment programme aims to rebuild or renew Pressure to reduce direct supplier numbers
virtually every secondary school in England. is creating opportunities for sub-contract
outsourcing ? the top 20 suppliers account
Mobile and fl exible working escalates for around £12 billion (70%) with a long tail
Kable estimate that £1.8 billion pa spent on of over 1,000 suppliers for the remaining 30%.
mobile and fl exible working represents 8%
Top suppliers in UK enterprise
of all public sector ICT spend. Emergency
services and defence departments are the
biggest spenders with the local government
BT, HP, Fujitsu, CapGemini, IBM, Capita, Dell,
market catching up by 2012.
Serco, CSC, ComputaCenter, Logica, Microsoft,
Atos Origin, Airwave Solutions, Research
Machines, SCC, Cisco Systems, C&W.
Government ICT Spend By Product Category in 2008/2009
Spend is substantial in every category of Government ICT procurement:
£m Central Local Health Education Justice Defence Transport Total
2008/09 Gov?t Gov?t
Hardware 294.1 673.0 250.4 1,003.0 305.9 338.9 47.2 2,912.5
Software 205.6 514.7 263.6 265.0 299.6 315.4 63.9 1,927.8
Services 2,793.3 791.8 1,070.7 289.7 1,090.7 1,061.6 279.7 7,377.4
Communications 174.7 588.3 284.4 253.0 453.3 277.7 61.1 2,042.4
Staff 227.3 1,385.7 588.2 858.0 225.2 68.4 28.0 3,350.7
Total 3,694.9 3,953.5 2,427.2 2,668.7 2,374.7 2,012.0 480.0 17,610.9
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?T he potential talent pool is
larger in Beijing or Bangalore.
But in the creative, more high
end stuff, we still have the
edge. Cambridge is a global
brand ? scientists around the
world have heard about and
feel it is a cool place to be.?
Head of Microsoft?s Research Centre in Cambridge
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Image: LCD Monitors in a service centre