Feeds

Gov: Half of new tech spending must be made with SME suppliers

'Come on guys, we've got to hit a target here'

Top 5 reasons to deploy VMware with Tegile

The UK government is trying to accelerate procurement reforms and hit ambitious targets by directing at least half of all new IT spending to small biz suppliers before the next general election.

One of the grand aims of the Cabinet Office had been to route 25 per cent of all government IT business through SMEs by the end of fiscal '15, but as of last March the figure stood at just 10.5 per cent.

"Our ambition is that at least 50 per cent of spend on new government IT flows to SMEs directly and in the supply chain," the Cabinet Office stated in a report Making Government Business More Accessible to SMEs [PDF].

It pointed to the abolition of pre-qualification questionnaires for contracts under £100,000 and the launch of the Contracts Finder service that allows SMEs to locate business more easily, as success stories for SMEs.

The majority of government business, however, continues to go through a select band of mega suppliers - multinational integrators and tech vendors.

The report revealed spending with SMEs, as a proportion of total spend, increased across 12 departments but went backwards in four, including Culture, Media & Sport; Work & Pensions; Justice; and the Home Office.

Programmes such as G-Cloud, now housed within GDS, were designed to level the playing field for SMEs. Yet the speed of progress has been slower than government would have liked. Public sector buyers have found it hard to break their old habits.

That said, the raft of the contracts that make up the majority of central government's £7bn annual IT spend are up for renewal at the end of fiscal '15 and government says it has lifted "barriers to entry".

"Competition in procurement will be encouraged with no like-for like extensions to existing contracts. Programme will be disaggregated for commercial purposes - broken down into components supported by the market to enable many suppliers to bid," the report added.

Outside of the traditional public sector procurement process, the government will set up a Solutions Exchange this summer as a platform for SMEs to pitch proposals. ®

Intelligent flash storage arrays

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.