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Revealed: the biggest suppliers of govtech in 2018

IT reseller Bytes Software Services has been named 2018’s biggest supplier of government technology in a new ranking from contracts data provider Tussell.

Bytes topped the list after winning a £159m deal to supply the NHS with licenses to upgrade its entire computing stock to Windows 10, as NS Tech first reported last year. But it is likely the reseller will only retain a small cut of the deal, with the rest going directly to Microsoft.

Neuda, a digital solutions provider, came in a close second, winning £155m of awards driven largely by a £150m contract to overhaul IT at the Northern Irish government’s environment department. DXC Technology came in at third position with (£150m), Fujitsu fourth (£119m) and IBM fifth (£110m).

Tussell also analysed the biggest suppliers of cyber security services to the public sector. BT came in first place, winning £28m of awards across three contracts. Leidos won £27m of awards and Deloitte won £18m.

Gus Tungendhat, the founder of Tussell, told NS Tech: “Tech is one of the most important, and highest value, sectors in government procurement. Here at Tussell we have reflected on a big year in tech procurement, which saw contracts worth £3.2bn awarded.”

“The findings paint a picture of a sector still dominated by the big firms, with DXC, Fujitsu and IBM all making the top 10 suppliers. With ten suppliers winning nearly 40% of the total value of contracts awarded in 2018, it seems there the public sector still has a way to go in increasing opportunities for smaller tech firms in its supply chain.”

Last year, Tussell’s researchers – commissioned by NS Tech – found that over the three years leading up to the end of June, the total value of contracts remained at around £5bn a year, but the number of contracts increased from 3,333 to 4,521 per year as the size of deals shrunk. Meanwhile, the value of awards won by the 10 biggest suppliers fell from 60 per cent of the total to 36 per cent.

During the same period, the proportion of the value of awards won by small and medium-sized enterprises (SMEs) rose from nine to 16 per cent, indicating the government still has some distance to go if it is to meet its 33 per cent target by 2022.