TechMarketView Predictions for 2012 - UK Public Sector

In the second in our series of Predictions for 2012, Georgina O’Toole and Tola Sargeant peer into the public sector tea leaves.

Eligible TechMarketView subscription service clients can download the full series of TechMarketView Predictions for 2102 here. 

1. Government ICT strategy will languish as new CIO team boards

The search is underway for a new UK Government CIO (to replace Joe Harley by spring 2012) and a new UK Government Deputy CIO (position currently vacant). When in place, the new Cabinet Office team will face an enormous task with a myriad risks threatening to hamper the implementation of the UK Government ICT strategy (not least the threat of a hiatus as the new CIO team finds its feet).

2. A peak in renewals will result in radical contract restructuring

2012 is the start of two years in which we will see a peak in the number of contracts coming to their natural conclusion. Contracts will be radically restructured on renewal as UK Government moves from a vertically-siloed model to a horizontal model.

3. Megaplayers will retain lion’s share of major contract renewals

Leading suppliers have worked hard to support the UK Government ICT strategy and many have ‘come off the naughty step’. In times of austerity, and a propensity for low-risk options, organisations will stick with ‘the devil they know’ if there is sound reason to do so. Suppliers will likely find their wallet share from existing clients eroded but will have the opportunity to broaden their client base by offering successfully implemented horizontal solutions to a wider range of organisations.

4. Shared services will really take off

2012 and 2013 will be remembered in the UK public sector as the period when shared services really took off. The trend towards ‘tower-based’ procurements will give departments and agencies more flexibility to buy from shared services centres in the future. The competition to be involved in the handful of hosting organisations that will eventually emerge as shared services centres will be intense.

5. SMEs will establish beachhead in government shared services

SMEs will have more opportunities as contracts are broken down, particularly where niche requirements, for example, security, are separated out and procured separately. The most successful suppliers will be those that focus on being best of breed in one or a handful of niche service lines that can be shared horizontally across multiple organisations.

6. G-Cloud will be patchy and slow-moving

New shared services organisations will give cloud adoption a push in the right direction. But shared services ventures aside, adoption of cloud services will be very slow to take off. The letting of the short 6-9 month G-Cloud framework (due early next year) indicates to us that most cloud adoption will be happening on low-risk smaller projects as UK Government dips its toe in the water to see what works and what doesn’t.

7. Mega players will further penetrate local government markets

The central government market is tough. Sectors like police (internal to external shift in spend), education (higher education in particular), and health (renewed interest due to localism agenda) are attracting increasing interest from the traditionally central government-focused suppliers. Many are investing in sector specific solutions and will be keen to see a return.

Posted by: HotViews Editor at 09:17

Tags: predictions  

Add a comment