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Whilst Local Government will remain under huge financial pressure for the foreseeable future, the sector will continue to look towards SITS suppliers as a source of innovation and as a catalyst for transformation. Business Process Services (BPS) supplier Liberata has been one of the best performing SITS suppliers in the Local Government market of late, (Liberata wins £30m joint Broxbourne and Welwyn Hatfield contract) and to help understand how the market is developing we caught up recently with Charlie Bruin (pictured), long term CEO of OSUK Professional Services (the parent company of Liberata) to understand his perspective on the sector, and how his firm is adapting its service offer to best address what are increasingly complex client needs.
Liberata’s perspective on the Local Government market
I commenced the interview by asking Bruin to outline the current market environment that his company was operating in with a focus on illustrating the challenges and constraints that his clients were encountering, in what remains Liberata’s core market (Some two thirds of Liberata’s business is in Local Government).
Bruin started by outlining the scale of the financial challenge. Whilst Local Government had recently received a c.£65bn financial settlement this year (representing a 6% uplift) plus a modest £600m top up confirmed last week, London Boroughs, Metropolitan and Unitary authorities, have all seen their budgets ‘sucked up’ by adult social care and children services, with both inflationary pressures and increasing demand for services challenging all councils, but particularly those with extensive statutory services. UK Local Authorities of all shapes and sizes have logically been finding this extremely difficult and have been struggling to balance their books. Even if you look at District Councils which do not have schools or social care responsibilities, he still sees budgets stretched precariously by other statutory obligations that get ever more expensive, such as like dealing with the homeless and in providing temporary accommodation for people in need.
Bruin’s other issue with the 6% settlement increase is that it assumes that Local Authorities will increase Council Tax by the maximum amount of +5%, that will in turn pass the burden onto the householder and council taxpayer, so that the actual amount of incremental money coming in from Central Government via Central Grants is lower than the quoted 6%. The reality is that the total amount of funding coming from Central Government has reduced significantly over the last 10-15 years, probably down some 40% to 50% over that period.
Consequently, Liberata is seeing Local Authorities put under significant pressure to raise revenue in ways that do not place too much of a burden on already overstretched households. Councils have to find a means of ‘balancing their books’ by managing their cost base, despite inflation washing through their organisation – something that was a particular challenge last year - whilst continuing to deliver statutory obligations and invest in technology, all at the same time.
From a SITS perspective Local Authorities are still looking to move their on-premises infrastructure to the Cloud as they look to upgrade and move to new security accreditations. They have also got to use new tools whilst dealing with increases in the cost base such as uplifts in the National Minimum Wage and in the National Living Wage (up by 9.8% this year). Cost pressures such as these are coming from several different directions and are impacting the ‘headspace’ available to undertake the required levels of investment in both improving services and outcomes for their users.
TechMarketView clients (including subscribers to UKHotViewsPremium) can read the full interview with Charlie Bruin by downloading *UKHotViewsExtra* Local Government Services Market – A Liberata perspective. If you do not currently have access but would like to read this UKHotViewsExtra please contact Deb Seth for more information.
Posted by Marc Hardwick at '13:19' - Tagged: interview Local Government
It is already apparent that the topic of Artificial Intelligence (AI) is going to loom large over many technology initiatives within financial services during the year ahead. Meanwhile, as highlighted by TechMarketView's research theme for 2024 of "Enabling Acceleration", UK Financial Services organisations will be working determinedly to shorten the time to value in respect of both their customer interactions, and their technology investments.
Our latest Financial Services predictions add some perspective to the current fervour around AI and discuss some of the specific areas of focus within the sector. In addition, our predictions are designed to highlight some of the potential areas of growth and opportunity in the marketplace over the next twelve months.
Subscribers to FinancialServicesViews can download UK Financial Services SITS Predictions 2024 now. If you do not currently have access to this material but would like to learn more about our predictions for the year ahead please contact Deb Seth.
Posted by Jon C Davies at '07:00' - Tagged: insurance banking financialmarkets wealthmanagement financial+services
By Georgina O’Toole and Kate Hanaghan
The response to the ITV drama, Mr Bates vs The Post Office, has been immense. Widespread public outrage forced both Paula Vennells to hand back her CBE and Prime Minister Rishi Sunak to announce new legislation, expected to be introduced within weeks, to exonerate the people whose lives have been so deeply impacted. Meanwhile, the Post Office Horizon Inquiry is ongoing, meaning much work is yet to be done to ascertain precisely where accountability lies.
On Tuesday (16th January), there was a “non-inquiry” parliamentary committee session where Paul Patterson (Director, Fujitsu Services Ltd and CEO Europe) answered questions pertaining to Fujitsu’s involvement.
Prior to the parliamentary committee session, the UK business had issued an official apology for the impact of its Horizon system but had not commented further as the Inquiry is ongoing. Patterson, however, as part of the parliamentary committee session was clear that Fujitsu had its part to play, that the Horizon system was, indeed, accessible remotely by Fujitsu employees for support and intervention purposes (and that this was documented and communicated to the Post Office), that his gut told him that Fujitsu was aware of glitches and bugs in the system as early as 2010 (though the precise timings of this were unknown), and that the company had supported the Post Office in prosecuting sub postmasters by giving them relevant information.
Meanwhile, company leaders in Japan have also not issued a statement, leading to some criticism in the media. (Note that Horizon was originally built by ICL and rolled out into Post Offices across the country shortly before Fujitsu, which had owned a stake in the firm for some time, acquired the firm in 1998.)
Whatever the final findings of the Inquiry next year, the current situation (including the extensive media coverage) has unquestionably already impacted Fujitsu. Patterson, while giving evidence to the parliamentary committee session, admitted that Fujitsu didn’t, during the time in question, act in line with its corporate Code of Conduct (“To treat customers, business partners, and competitors fairly and with respect”), but was keen to highlight that the Fujitsu of today is very different to the one of the early 2000s.
TechMarketView clients can read our analysis of the current situation, here.
If you would like to become a client, drop Deb Seth a note.
Posted by HotViews Editor at '09:50' - Tagged: contracts government
Are you, or do you know, the founder of a UK tech company that deserves recognition?
Whether they’re at the beginning of the entrepreneurial journey as a start-up or scale-up entrepreneur, or leading a well-established enterprise, why not nominate them for an Enterprise Awards in 2024?
The Enterprise Awards is the only award uniquely focused on recognising entrepreneurial founders in UK tech.
Each year, movers and shakers of the technology sector – entrepreneurs, investors and advisors – come together to honour the best of the best.
This prestigious sell-out black tie event is back for its 12th year in 2024, hosted at Drapers Hall in the City of London on June 26.
TechMarketView is once again a headline sponsor for the awards, the profits from which go to nominated charities, alongside organisers ScaleUp Group, and fellow sponsors Evelyn Partners and Silverpeak, with our CEO Tola Sargeant chairing the judging panel.
To nominate a worthy entrepreneur for an Award – or to put yourself forwards – complete the short ‘Expressions of Interest’ form here.
Posted by TMV Team at '08:53' - Tagged: awards entrepreneurship
If 2022 was the year when tech stocks fell to earth, then 2023 was the year in which they took flight once more, with the US tech-focused Nasdaq finishing the year up 43% and not far off its 2021 peak.
Interest rate increases during 2021 and 2022 took their toll on tech shares more than those of other sectors. Conversely market expectations of interest rate reductions make tech assets more attractive again.
And with the Federal Reserve indicating at its December meeting that it may not increase rates further, it looks like tech is set to benefit as we enter 2024.
But a closer look reveals that much of the Nasdaq’s buoyant 2023 performance was driven by Big Tech, prompting questions about whether this is a tech boom on the back of an improving economic outlook or Big Tech flexing its AI muscle and consolidating its market strength.
Research subscribers and UKHotViews Premium readers can read more in US tech surges whilst UK stocks stutter.
If you would like to discuss subscription options, please contact Deb Seth.
Posted by Tania Wilson at '09:55' - Tagged: markets macro
TechMarketView’s latest UK Local & Regional Government Software and IT Services (SITS) Suppliers, Trends, and Forecasts report is now available. It is the last of six subsector reports, (after Central Government, Defence, Health, Education, and Police) and it follows our UK Public Sector Software and IT Services Suppliers Trends, and Forecasts report, published in August 2023.
This report provides TechMarketView’s view of the UK Local & Regional Government Software and IT Services (SITS) market from a market and supplier perspective. It provides our analysis of the performance of the market in 2022, a year of near-flat (+0.5%) growth—though down 4.7% in real terms—as councils struggle to attend to pressing issues of modernisation and continued service delivery in a highly constrained financial environment.
The report also contains an update to our UK Local & Regional Government SITS Top 10 supplier rankings, with our analysis of what is driving each player’s performance, as well as an insight into those suppliers that are threatening to unseat the leading players, and our pick of the ‘ones to watch’.
PublicSectorViews subscribers can find out the size of the UK Local & Regional Government SITS market, its future growth, and who the leading suppliers are by downloading Local & Regional Government Software and IT Services Suppliers, Trends and Forecasts 2023-26 today. If you are not yet a subscriber, or are unsure if your organisation has corporate subscription, please contact Deb Seth to find out more.
Posted by Craig Wentworth at '08:16' - Tagged: market trends supplier rankings LRG Local & Regional Government
TechMarketView’s Immersive Customer Experiences: Progress, Possibilities and Prognosis report is now live for our subscribers.
Two years ago, expectations regarding the transformative impact of immersive technologies on Customer Experience had reached a fevered pitch. Announcements of intended investments by service providers in the arena totalled billions of dollars and immersive start-ups were attracting stratospheric valuations.
As the realities of cost, technical limitations, and integration challenges bit quickly, however, peak immersive hype was soon reached. Despite the subsequent cooling of Extended Reality market ardour, there remains a strong case to suggest that the future of CX is immersive.
This new research contains our analysis of the progress that the leverage of immersive technologies has made in the CX arena together with examples of the uses to which they are being put. The commentary also considers “where next?” for immersive CX and looks at the emerging technologies that are likely to impact developments in this arena in the years ahead.
If you are a subscriber to TechSectorViews, download the Immersive Customer Experiences: Progress, Possibilities and Prognosis report today. If you don’t have a subscription and would like to gain access the report and our other research and services please contact Deb Seth.
Posted by Duncan Aitchison at '07:53' - Tagged: newresearch immersivetechnologies customer+experience
Just before we headed into the festive break, TechMarketView, published its Predictions for 2024.
For context, we also reflected on what had been a much tougher year for suppliers to the UK Software and IT Services (SITS) market. For those that have seen TechMarketView’s latest analysis, you’ll know that TechMarketView’s view is that the market is unlikely to have expanded in real terms in 2023.
This toughened environment, combined with other challenging factors such as increasing cyber threats, growing competitive pressure, and rising employee and customer expectations, is forcing many organisations to rethink tech investments.
In 2024, buyers will put much greater focus on ensuring they are ready to adopt and leverage – at pace – the value of emerging technologies. Artificial Intelligence will of course be key, but the net will be thrown much wider and we'll also see organisations consider how the roll-out of more traditional technology and existing processes can be elevated by infusing emerging tech. Read more about 2024’s research theme from our Chief Analyst, Georgina O'Toole, here: Enabling Acceleration. For suppliers, a key focus in the year ahead must be instilling confidence in clients and prospects to progress quickly and adopt unfamiliar technologies, while at the same time proving that the extensive foundational work still required by many can deliver value and efficiency in the short-term.
With all of this in mind, the following TechMarketView Predictions for 2024 are set in the context of a rapidly evolving technology landscape and consider how organisations will leverage that technology to unleash pacy organisational change.
TechMarketView clients can read the detail behind the headlines here: TechMarketView Predictions 2024.
To become a client, or find out how TechMarketView can help your organisation, please contact Deb Seth.
Posted by HotViews Editor at '10:00' - Tagged: cloud cyber AI data
A broad-based IT refresh is underway across UK Financial Markets, particularly within the capital markets segment where AI, machine learning, proprietary algorithms, and automation are all having an increasing influence. Cloud adoption is also a priority as firms look to implement digital processes and pursue the agility to embrace new operating approaches.
Following a period of strong and sustained growth, SITS spend within UK Financial Markets peaked during 2022 with the market worth £2.4bn. The Financial Markets sector has since endured a challenging time over the past twelve months, with high-interest rates, rising inflation and global tensions having a negative impact on the investment industry.
Subscribers to FinancialServicesViews can learn more by downloading Financial Markets SITS, Trends and Forecasts. The report analyses the business and technology trends impacting the Financial Markets sector in the UK and includes TechMarketView’s detailed forecasts for expenditure within the associated software and IT services (SITS) market.
The report contains a variety of market sizing data drawn from TechMarketView’s proprietary market model. Revenues in this report are based on our own research and estimates, supported by analysis of the performance of UK SITS providers and our discussions with the end user community.
If you are not already a subscriber to FInancialServicesViews but are interested in learning more about this report or any other of our material, please contact Deb Seth for more information.
Posted by Jon C Davies at '06:00' - Tagged: CapitalMarkets financialmarkets financial+services
You might have missed some key end-of-year research published in the few weeks before the festive break. If you did, as we head into 2024, now is the time to catch up!
At the beginning of December, we launched our research theme for 2024: Enabling Acceleration. Avid TechMarketView followers will know that as we head towards a new year, we try to paint a picture in a few words of what the next 12 months will have in store for the tech market and its suppliers. Our 2024 theme encapsulates our belief that the intense pressure that organisations feel to keep pace with the speed of technological innovation and make a transformation step change. That pressure is going to impact the behaviour of end user organisations and demand a fresh response from tech suppliers. To read a more in-depth analysis of why this theme will be so important in the year ahead, make sure you download this report: TechMarketView Research Theme 2024: Enabling Acceleration | TechMarketView.
Of course, a key part of this ‘Enabling Acceleration’ picture is the rapidly evolving world of AI, which continues to dominate market narrative, influencing digital transformation investment across all industries and market segments. No wonder then that our report, providing a snapshot of key AI market trends, prevalent use cases, and keys suppliers, has caused such a buzz. If you’ve missed out so far, wait no longer and download the report: Artificial Intelligence: Market Trends, Use Cases and Suppliers | TechMarketView
Importantly, having continued to monitor the results and trading updates of suppliers over the last twelve months – and had numerous conversations with UK executive teams - we’ve also been in a strong position to update our view on how we think the UK software and IT services (SITS) market performed in 2023. We’ve also taken a view on how market conditions will impact SITS demand from 2024 onwards. So, if you want to keep abreast of how the market is evolving and make sure you are making decisions with an eye on the latest available analysis, you should head to our this report: Market Outlook Update 2023 | TechMarketView.
You’ll also be able to get a grip on the biggest trends likely to define the UK tech market in the year ahead in our TechMarketView Predictions 2024. Our expert analyst team has, after much deliberation, settled on Ten Top Predictions, covering a range of research areas, from AI, to Automation, to Sustainability. Want to know where to focus your investments? Then make sure you delve into TechMarketView Predictions 2024 | TechMarketView.
If you aren’t yet a TechMarketView subscriber—or are unsure if your organisation has a corporate subscription—please contact Deb Seth to find out more. This is just a handful of the insight that TechMarketView published in December and a tiny proportion of the research that the team has published for our clients over the year.
Posted by Georgina O'Toole at '08:17' - Tagged: predictions forecasts report AI enabling+acceleration
