NEW report: UK public sector SITS market trends & forecasts

In 2012, the UK public sector SITS market declined by 2.0% to be worth £11.3b. With further declines forecasted over the current year, we expect the market to be worth £644 million less in 2013 than in 2010. A forecast CAGR of just 1.0% in actual terms between 2012 and 2016 illustrates well our view that the market will struggle to deliver any kind of recovery over our forecast period.

This future view is heavily impacted by the dominating central government market. Since the Coalition Government came to power, ICT expenditure has come under pressure, exacerbated by the increasing powers of the Cabinet Office. Over the last year, actions to put in place the foundations for further ICT savings have started to have more of a pronounced impact. We expect the acceleration in the pace of change—around use of SMEs, smaller contracts, and increased use of cloud services—to continue, particularly in light of the opportunity represented by the peak in large outsourcing contracts coming to an end between 2014 and 2015. Suppliers need to accept the ‘new normal’ and consider changing their commercial and delivery approaches to suit the new environment.

Outside central government, budgetary pressures will continue and there will remain procurement hurdles to overcome, but the use of private sector to deliver both ICT and business process services will continue in various forms. The trick to winning business in a tough market will be having a deep understanding of changing procurement models as well as the varying acceptance of technologies in support of the mobility agenda, channel shift and digital delivery.

This latest TechMarketView report from the PublicSectorViews team – UK public sector SITS market trends & forecasts 2013 – consolidates our forecasts for each of the UK public sector sub-segments through to 2016. It provides our view of the how UK public sector organisations are reacting to budgetary pressures and the issues that suppliers should be considering in their approach to the market. If you are not yet a subscriber, please contact Deb Seth to become one!

Posted by Georgina O'Toole at '09:30' - Tagged: publicsector   markettrends   forecasts