5 Lessons from the Public Sector’s Most Successful Tech Suppliers

The UK public sector is one of the world’s largest technology customers - but success in this market doesn’t come from luck.

Technology or otherwise, the most successful suppliers win because they understand the shape of demand, track buyer behaviour over time, and align their strategy to where the real opportunities lie.

In this article, we break down five data-driven lessons you can learn from the public sector’s top-performing tech suppliers - and how you can apply them to grow your own footprint.

1) 📈 The public sector market is growing - but not evenly

The public sector technology market has experienced rapid growth between FY19/20 and FY23/24, with a compound annual growth rate (CAGR) of 8% over four years.

Some markets have stagnated. For example, Local Government tech spend has flatlined, while traditional telecoms suppliers have seen their share shrink.

Source: Tech Titans 2025

For suppliers in all sectors, there are lessons to be learned here.

The most successful firms are those that spot growing markets early - and act quickly to develop new service lines or refocus efforts on buyers with increasing budgets.

Bad data can be expensive, and failure to act can leave suppliers behind.

Book a Tussell demo to learn why more than two-thirds of the Strategic Suppliers already trust Tussell to inform their public sector strategies.

2) 🏛️ Local Government works well for SMEs - but other markets offer scale

There are no hard rules for which markets to target, but the data shows two standout trends:

1. Local Government spends 5x more with SMEs than Central Government

2. The top-performing tech suppliers (excluding IT resellers) rely more on Central Government for their public sector revenue.

Source: Tech Titans 2025

Why? Local Government contracts are typically smaller and regional. Central Government and NHS contracts are larger, harder to win, but offer serious potential to scale.

Yes, there are outliers - but understanding these patterns helps suppliers make smarter account choices and resource bets.

3) 🌹 Politics shapes procurement - more than you think

It’s no surprise that politics influences government buying - but the impact can be dramatic.

• From FY19/20 to FY23/24, NHS spend with the top 150 tech firms rose 69%, driven by national digitisation efforts.

• In the same period, Local Government spend with top firms fell 3%, amid ongoing austerity.

The COVID-19 pandemic temporarily pushed DHSC to the top buyer spot in FY20/21; the MOD reclaimed it in FY23/24 as defence moved up the agenda.

These shifts underline a core sales principle:

Understand your customer - and the forces shaping their world.

 

 

 

4) 🚀 Top suppliers win more through frameworks - and you should too

In FY23/24, 56% of contracts won by the top 150 tech suppliers were via frameworks or Dynamic Purchasing Systems (DPSs) - up from 45% in FY19/20.

That compares to a 5-year average of just 35% for other technology suppliers.

Framework use is rising across the public sector - not just in tech - and a strong framework strategy is now essential to compete.

But not all frameworks are created equal:

• TePAS was most valuable for IT resellers

• G-Cloud 13 for cloud suppliers

• Digital Workplace for hardware vendors

Framework usage also varies on a customer level, with many public buyers now using decentralised frameworks for procurement.

Not on the right frameworks? You could be leaving serious money on the table. Book a chat with Tussell to see how our framework insights can unlock new revenue.

5) 💼 The market is mature, but challengers still thrive

The top 150 suppliers account for 84% of public sector tech spend, but that doesn’t mean the door is closed.

The public sector faces urgent challenges - from adult social care to climate resilience to national security - and needs innovative solutions.

Meanwhile, new Central Government targets for SME spend make this a ripe moment for insurgent firms to grow.

If you know where the demand is and what buyers are prioritising, there's still huge potential to break through.

Ready to unlock public sector growth?

Whether you’re scaling up or breaking in, the right intelligence gives you a critical edge. Tussell is the trusted source of public sector market data, used by teams around the world to win smarter.

👉 Book a demo and discover how Tussell can help you spot trends earlier, compete more effectively - and win more.