HP to overtake BT as top government IT supplier
Kable
Published: 22 May 2008 08:26 BST
BT was once more the biggest supplier of UK government ICT in 2007, but HP's purchase of EDS may now have put the merged company into the lead.
New research from Kable shows that the state sector spent £2.1bn with BT last year; but the combined ICT spending with HP and EDS, which are on course for a merger, was £2.235bn.
HP announced its friendly takeover of EDS on 13 May, for $13.9bn (£7bn). EDS will continue to use its existing name.
The Kable research, The supplier landscape in the UK public sector marketplace 2007, shows that EDS was independently the second-largest ICT supplier to the UK state sector, which spent an estimated £1.48bn with the firm. It was followed by Fujitsu Services (£1.2bn), Capgemini (£900m) and HP (£755m). The report ranks all five suppliers in the same order as in 2006.
CSC provided one of the few changes in position among the top 20 suppliers, moving from 19th place in 2006 to 10th. Its £400m estimated income from state-sector ICT was boosted by the firm's adoption of two of the five local service provider contracts from Accenture within the NHS National Programme for IT. Accenture departed from the top 20 suppliers for the same reason.
The top 20 suppliers account for 70 percent of the £12bn of total spending, according to the research.
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"The use of IT in the public sector is in flux," said Nick Jotischky, senior analyst at Kable. "With government transformation at the heart of public-sector policy, technology is increasingly being used as an enabler to drive government policy. While this presents ample opportunity for the supply market, it also suggests that suppliers will need to act more as partners than providers."
"We see the successful suppliers of 2008 as those that can respond to the public sector's emerging markets and needs. We also see the government preparing to slim down its own supply chain in an effort to work with fewer suppliers; this will mean the supply community needing to become more open to the idea of working in partnership with fellow suppliers," Jotischky said.
"Where this fits with the government's self-declared aim of awarding 30 percent of all contracts to the SME market is not immediately clear," he added.
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