Local Government Tech Procurement: what's the landscape?

Local Government Tech Procurement: what's the landscape?

Posted by James Piggott on 09 December 2021

Tech procurement at the local level is big business: on average, £1.8 billion is spent by local authorities on tech every year.

If you're a tech supplier, local government represents a consistently lucrative market to sell your tech solutions, products and services.

This blog extracts the key findings from our Tech Procurement in Local Government presentation with techUK. We covered the local government tech market's size, its key suppliers and buyers, key frameworks, and analysed upcoming opportunities. Click here to download the full report!

With this intelligence - generated using our own market intelligence platform - you can better grasp the local government tech landscape, putting you in prime position to win more business. 

 

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💻 Our key findings:

 

How much does local government spend on tech?

  • On average, local authorities spend £1.8bn per year on tech procurement. Tech spend peaked in 2020 at £2.0bn.

    • Since 2016, 64% - or £2.2bn - of total tech spend has been spent by local authorities outside London and the South East.

    • Since 2016, local authority spend on tech suppliers based in their own region was highest in the West Midlands, with 48% of public sector income for West Midlands-based tech suppliers being spent by West Midlands-based local authorities.


Who do local governments procure tech from?

  • Tech SMEs have increased their market share of direct local government tech spending by nearly 30% since 2016, rising from ~20% to 26% of total spend share.

    • Capita - a Strategic Supplier - is the largest local government tech supplier by a sizeable margin, having received £2,989m since 2016. This is compared to the £874m sum received by the second largest supplier, BT.

 

Where do tech contract opportunities lie?

  • The largest tech frameworks used by local government bodies had over £450m worth of call-offs, the largest of which being Technology Products & Services (£193m)

     

  • Though the average value of local government Network & Communications contracts has fallen from £5.5m in 2016 to £0.7m in 2021, it is still the most valuable tech contract category on average.

    • Live tech contracts worth over £845m roll off by 2023, £301m of which are Hardware, Software & Licenses related contracts.

  • 20 contracting authorities account for £377m of upcoming contract renewals, or 46% of the total. The London Borough of Croydon tops the list, with £49m worth of tech contracts expiring by the end of 2023.

 

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To dig deeper, download the full Tech Procurement in Local Government report.

You can also download our other tech-related reports:

All the data in this presentation was drawn from our market intelligence platform. To see how Tussell can help you analyse and anticipate both local and central government tech opportunities, book a personalised demo with our sales team.

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