Feeds

Capgemini and HP gain ground in public sector marketplace

Two winners in ICT supply battle

The essential guide to IT transformation

Capgemini and Hewlett Packard have gained the most ground in the rankings of top suppliers to the public ICT market.

New research from Kable shows that Capgemini rose from seventh to fourth place, while HP shot up from thirteenth to fifth place.

BT, EDS and Fujitsu retained the first three positions, while IBM, Dell and Capita all slipped a couple of places.

The supplier landscape in the UK public sector marketplace, shows that a few big players enjoyed a notable growth in sales in 2006. These included: Fujitsu, on the back of a number of infrastructure upgrade project wins; Capgemini, which had its first full year delivering the huge HMRC Aspire contract; Hewlett Packard, benefiting from major infrastructure upgrades in health and central government; and O2, which has benefited from additional revenues from the expansion of Airwave.

The report shows that the larger service and systems integrators are continuing to increase their influence at the expense of the smaller generalists.

Kable emphasises, however, that while the leading service providers have increased their influence over recent years, this does not guarantee continuing success. The winners of tomorrow will resist the pressure to chase inappropriate opportunities, pick their targets carefully, and recognise that public sector buyers choose strategic commitment over opportunism.

Models for this approach can be found among suppliers who anticipated the maturing of the ICT outsourcing market, and built added value around elements of business process outsourcing, business transformation or infrastructure engineering. Virtually all of the high growth service providers in the league table below developed one of these approaches in good time.

Success is also increasingly dependent on a healthy partner strategy and a compelling partner proposition.

This remains a dynamic market, with many new players coming in and a large, ambitious group of mid-size players. The marketplace is increasingly dominated by customer demands for better use of existing assets, incremental improvements (rather than big new schemes) and improving value for money in replacement contracts.

The report includes analysis of the leaders in each main segment, based on Kable estimates of the 2006 business performance of leading suppliers and Kable databases of contract activity in the UK public sector. It describes the supplier landscape as it stands in early 2007, and explores current trends and likely developments over the medium term.

League Table Summary of Top 20 Suppliers to UK Public Sector ICT Market, 2006
2006 rank 2005 rank Supplier 2006 UK Public sector ICT £m sales (estimates, see below)
1 1 BT 2,078
2 2 EDS 1,429
3 3 Fujitsu 1,145
4 7 Capgemini 800
5 13 HP 680
6 4 IBM 614
7 5 Dell 596
8 6 Capita 543
9 9 Serco 526
10 8 Computacenter 378
11 12 O2 363
12 10 LogicaCMG 339
13 11 Accenture 317
14 14 NTL 289
15 17 Microsoft 265
16 15 Research Machines 259
17 18 Cable and Wireless 220
18 21 Cisco 206
19 20 CSC 203
20 25 Atos Origin 182
Total of the above 11,432
Source: Kable, The supplier landscape in the UK public sector marketplace.

Note: The supplier sales figures above include goods and services bought in from other suppliers and sales made via intermediaries. This data shows the size of the market influence of the big suppliers and is not the same as market share.

Anyone wanting a full copy of the report can contact Stephen O'Sullivan on 020 7061 3238 or stephen.o'sullivan@kable.co.uk.

Note: The supplier sales figures above include goods and services bought in from other suppliers and sales made via intermediaries. This data shows the size of the market influence of the big suppliers and is not the same as market share.

Anyone wanting a full copy of the report can contact Stephen O'Sullivan on 020 7061 3238 or stephen.o'sullivan@kable.co.uk.

This article was originally published at Kablenet.

Kablenet's GC weekly is a free email newsletter covering the latest news and analysis of public sector technology. To register click here.

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?