Wednesday 29 January 2020

*New Research* Digital Marketplace 2019 Review

Digital Marketplace ReportThe Crown Commercial Service (CCS) has published the latest batch of Digital Marketplace sales data covering the period up to the end of last year. The data covers sales from the G-Cloud and Digital Outcomes & Specialists (DOS) frameworks.

Spend for the 12 months ended 31 December 2019 was £2,362m, up 28% year-on-year (2018: £1,844m), and the first time Digital Marketplace spend has topped £2bn. G-Cloud accounted for 66% of these sales with DOS accounting for the remaining 34%. Although both frameworks achieved strong growth there was a significant slowdown in growth of DOS spend.

The data shows 57% of Digital Marketplace spend going to large companies, 38% with SMEs and 5% with unclassified companies. However, TechMarketView’s analysis revealed in our Digital Marketplace 2019 Review shows the proportion of business by value awarded to SMEs is lower than the raw data suggests, and that G-Cloud spend with SMEs continues to fall. Although this is, in part, due to some SMEs benefitting from the Digital Marketplace to the extent they are no longer classed as SMEs, the Government still needs to do more to ensure greater SME involvement in public procurement.

The Digital Marketplace continues to be dominated by central government, accounting for 81% of spend in 2019. However, we are continuing to see growth across all areas of the public sector.

The leading suppliers in 2019 were Kainos (£92.7m) followed by AWS (£82.9m) and IBM (£81.5m). The Home Office remains by far the largest spender on the Digital Marketplace; it spent £371.4m in 2019, more than the next three central government departments combined.

PublicSectorViews’ clients can download our full analysis of the Digital Marketplace data here: Digital Marketplace 2019 Review.

Please contact Deb Seth for further information about TechMarketView’s subscription services.

Posted by Dale Peters at '09:31' - Tagged: research   government   framework   g-cloud   data   dos