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During the course of our everyday research, the PublicSectorViews team picks up on new developments in the UK public sector market that don’t make it into UKHotViews. In particular, we often become aware of interesting opportunities, contract notices or sources of funding. These developments don’t get ignored; we use them to form our views within our core research (for example UK Public Sector SITS Market Trends & Forecasts) and we bring some of the key announcements together in our regular PublicSectorViews Opportunities Bulletin.
The August 2017 Opportunities Bulletin starts with the health and care sector, where we have seen several announcements concerning NHS modernisation and innovation in 2017. The government is prioritising investment in health and care ahead of most other areas of the public sector and continues to see technology and innovation as core to the NHS’ transformation. We hope the innovation funding will provide SMEs with a better chance of engaging with the NHS, but contracts are still relatively small and the risk of opportunities fizzling out after pilot phase remains high.
The second article looks at central government opportunities, focusing on two recent Home Office contract notices relating to immigration technology. The task of reforming the technology that runs the UK’s immigration system has been a long and challenging process for the Home Office, and the EU referendum result has put further pressure on this reform. The need for a new immigration system to cope with the inevitable changes that Brexit will bring is clear, and any new system will require the requisite technology to be in place as a matter of urgency.
PublicSectorViews subscribers can read our analysis by downloading August's Public Sector Opportunities Bulletin now.
Posted by Dale Peters at '09:55' - Tagged: contract health government central brexit
Growth in the UK Business process services (BPS) market is slowing considerably due to the deflationary impacts of Intelligent Automation, Digital and the resulting re-shoring, insourcing, and hybrid as-as-a-service models.
Brexit adds to the uncertainty we are now seeing across the UK BPS market, and it is having a negative impact on both public and private sector outsourcing spend.
We expect BPS to grow at a compound annual rate (CAGR) of 3.2% between 2016 and 2020 to be worth £9.9b. However this is still ahead of other horizontal areas within the UK SITS market (see UK SITS Market Trends & Forecasts 2017-2020).
Traditional ‘lift-and-shift’ BPO is now very much a legacy model, in terminal decline. It used to dominate the BPS market. We now expect it to decline -4.1% over the period, and continue that downward trend thereafter.
Against this providers are going to have to look to new sources of revenue opportunity to rebuild and regrow.
Data, intelligence and analytical insights will be critical here, as will platforms and Business Process-as -a-Service (BPaaS) utilities that can manage and operate disparate systems and processes flexibly. People will also play a vital role, however they will become far more like overseers and managers of processes, relaying intelligence back and forth, and supplying answers to the toughest questions.
Subscribers to BusinessProcessViews can read our latest anchor report providing detailed analysis of the trends and opportunities in UK BPS Market Trends & Forecasts 2017.
Posted by John O'Brien at '09:24' - Tagged: markettrends bps
Following its agreement to acquire Civica, which was signed at the end of July (see ‘Unicorn’ Civica finds new Partners for its journey), we caught up with Partners Group to learn more about the investment and its plans for the business.
Partners Group is a global player that has made PE investments across a wide range of industries, including consumer, IT, healthcare and business and financial services, typically with businesses at the upper end of mid-market.
Prior to the Civica deal it had completed two PE acquisitions in the UK. In 2014, it was part of a consortium in the £375m acquisition of Voyage Care, which provides specialist residential services for people with learning and physical disabilities, and in April this year it acquired Key Retirement Group, a retirement and financial planning specialist for c.£200m.
TechMarketView spoke to Bilge Ogut, Managing Director, Private Equity Europe, about why Partners Group agreed to acquire Civica for £1,055m. Read more here...
Posted by Dale Peters at '09:54' - Tagged: acquisition PE
There has been a lot of movement among the Top 20 providers of Business Process Services (BPS) in the past year, reflecting the huge level of disruption that is taking place across the market.
The over-arching dynamic is the rapidly changing shape of the leading BPS suppliers to become leaner, more agile businesses. This is in response to the way customers are buying services – smaller, discrete, often single process deals, with automation and digital technologies, such as Robotic Process Automation (RPA) and artificial intelligence (AI) at front and centre. Brexit is also having a negative impact in areas like financial services and investments.
The overall effect of these market changes is downward pressure on spend. However for many BPS suppliers this transition remains extremely painful as customers unbundle large deals at renewal, and force their incumbent providers to take significant price cuts to retain business.
Subscribers to TechMarketView's BusinessProcessViews research services can read the full analysis of who's hot and who's not, and why, in our new report UK BPS Supplier Ranking 2017.
If you are not yet a BusinessProcessViews subscriber, please contact Deb Seth (dseth@techmarketview.com) to find out how you can access the research.
Posted by John O'Brien at '09:30' - Tagged: bps rankings
MML Capital Partners has become lead investors at managed services firm, CSI Ltd. Reports in the media suggest MML is putting in £36m.
CSI (which has offices in Birmingham, Farnborough, Coventry and Glasgow) was originally acquired by Blackhawk Capital in 2012 as the cornerstone for a buy-and-build strategy in the IBM space. The purpose was to take CSI from traditional reseller to managed services provider, via both acquisitions and other investments.
CSI's span is pretty broad for a firm of its size (which we believe to currently be sub-£50m), covering infrastructure (including IaaS), software (Platinum level IBM and SAP partner) and cyber security (managed services and advisory). That breadth places it well as a managed services provider in the mid-market where the clear trend is for strong growth based on buyers' preference for funneling their IT spend towards a very small number of core suppliers (or even just one key supplier).
Our recently published report, “Infrastructure Services Supplier Ranking 2017”, looks at the factors influencing suppliers of cloud and infrastructure services. In it we examine some of the dynamics particular to the mid-market and give examples of the players that are executing strongly. Certainly there is plenty of opportunity amongst mid-sized enterprises, and with investment and a clear strategy behind it, CSI looks set to scale further.
Posted by Kate Hanaghan at '09:51' - Tagged: acquisition managedservices cyber
The eagerly awaited UK public sector SITS supplier rankings 2017 report is here. Subscribers to TechMarketView’s PublicSectorViews research stream can download the report now to see our analysis of the supplier landscape: it’s a who’s who of the leading players in the market… and who is challenging them for their positions.
The report includes our latest update to the UK public sector SITS Top 20 supplier rankings. It also contains Top 10 rankings for each of the subsectors (central government, local government, health, education, police and defence) and an analysis of the broader supplier landscape, including who has motored and who has struggled in 2016 and 2017.
Corporate activity has had an impact on the supplier landscape over the last year or so. But we also continue to see a wide diversity of performance; that diversity is apparent amongst the leading players, as well as between the leading players and the SMEs and mid-sized players. Our analysis highlights the reason why some players have triumphed over others, i.e. whether it is due to contract timings or a more fundamental shift in strategic positioning.
Later in the year, we will provide a full analysis of the players, in a new report entitled “UK Public Sector SITS: Supplier Prospects”. Published in Q417, it will provide our analysis of the prospects for the leading suppliers in 2018, as well as our opinion on the newer entrants challenging the status quo.
The report is available to download now. If you are not yet a PublicSectorViews subscriber, please contact Deb Seth to find out how you can access the research.
Posted by Georgina O'Toole at '08:46' - Tagged: publicsector centralgovernment localgovernment defence education police health rankings suppliers
In a bizarre turn of events, it is being widely reported (original source: Business Insider) that collaboration software start-up, Huddle, published on Sunday, then deleted, a blog announcing that the company was being acquired by San Francisco-based private equity firm Turn/River (operating in the UK as Harmony). The blog was captured by Business Insider (see screenshot) so it certainly seems to have existed at one point. There was also a letter sent to employees and shareholders on Monday, which appears to have been widely circulated.
It’s likely that the blog post, suggesting Huddle was “delighted” with the deal, did not go down well across the company. Though unconfirmed, it is suggested that the majority stake has been acquired for $89m – well below previous past valuations, which reached $300m. The result is that, though preferred shareholders will see a payout, ordinary shareholders (which include current and former employees) will only receive a goodwill gesture of $100 each.
Huddle (officially Ninian Solutions)’s report and accounts rang some warning bells for us when they were filed in March. Read more here....
Posted by Georgina O'Toole at '09:34' - Tagged: saas software privateequity M&A collaboration
The eagerly anticipated 2017 Infrastructure Services Supplier Ranking report has been launched today. InfrastructureViews subscribers can download it here.
The report examines the performance of the Top 20 players in the UK Infrastructure Services market, explaining the key market and industry forces that have impacted their businesses in the last year. One of the most significant changes to the ranking is the appearance of a new name: DXC Technology. DXC’s IS business is the result of the merged CSC and HPE Enterprise Services, and our estimates reflect the market challenges it is facing. Our analysis also includes our view of Amazon Web Services, which entered the Top 20 for the first time in last year’s report and continued to move up the ranking in spite of slower growth in its most recent financial year.
We also look outside of the Top 20 highlighting some of the most interesting players, and give our view on how M&A is impacting the industry and why the mid-market keeps on bearing fruit for suppliers.
If you want to understand who is excelling and who is struggling, this report will give you what is likely to be the most accurate view of players today.
If you don’t have a TechMarketView subscription or don’t take the InfrastructureViews research stream, you can contact Deborah Seth who will be able to advise on subscription options.
Posted by HotViews Editor at '09:54' - Tagged: cloud hosting infrastructure digital
