Small IT suppliers set to win more contracts

6 July 2005
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07 July 2005 | Anusha Bradley

The UK's smaller IT suppliers look set to win more government contracts in the future and cut the market share of larger suppliers, a study has suggested.

According to a report released last week by research firm Kable, the total market share of the 20 biggest IT sellers to the public sector fell from 69 per cent in 2003 to 63 per cent in 2004.

But over the year, the total market for public-sector IT procurement grew by 19 per cent to £12.3 billion.

Seyi Agboola, market intelligence manager at Kable, said: "Big gainers have been the mid-tier players, such as iSoft, Cisco, Northgate, Hyder and Liberata."

However, BT bucked the trend by hanging on to first place.

Agboola told SM the rise of these companies was caused by a shift towards signing deals with smaller suppliers.

Another reason was a fall in the number of large public-sector IT projects. While large suppliers will benefit from big contracts such as the national programme for NHS IT systems, the Inland Revenue's electronic taxation system and defence contracts, smaller suppliers have risen up the ranks and will continue to feature more heavily, Agboola added.

SMjul2005

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