SMEs gain a greater share as Digital Marketplace spending tops £3bn

Written by Sam Trendall on 2 February 2018 in News
News

Government figures reveal that 48% of revenue has gone to smaller firms

Spending through the government’s Digital Marketplace has topped £3bn, with a greater percentage than ever going to SME suppliers.

According to newly published government figures, from its launch in 2014 up until the end of last year, the platform has facilitated £2.85bn of sales through the various iterations of the G-Cloud framework, as well as almost £205m from the Digital Outcomes and Specialists vehicles, and about £164m from their predecessors: Digital Services; and Digital Services 2.

A total of 48% of revenue – equating to £1.44 out of every £3 – has been handed to SMEs. When spending data was published in August, those figures were 46.3%, or £1.39 in each £3. 

Digital Marketplace director Warren Smith said: “We’ve started to bring the tools, techniques, technologies, and culture of the internet to public procurement and contracting. What we’ve achieved so far is testament to an amazing team and the importance of user-centred, design-led, data-driven and open approaches, but we’ve only scratched the surface. The next three years, to 2020, will see a step-change where these approaches are mainstreamed across government.”


Related content


It is understood that the Digital Marketplace is being used as the blueprint for the Crown Marketplace, an online platform currently being developed by the Crown Commercial Service and the Government Digital Service, that will allow the public sector to procure a comprehensive range of goods and services. Although there have been some mixed messages on whether both marketplaces will ultimately co-exist, Niall Quinn, director, technology strategic category director at CCS, recently told PublicTechnology that “I do not think two marketplaces is sensible – we need one marketplace for the future”. The Crown Marketplace is currently expected to launch in the early part of 2019.

In a statement accompanying the new spending figures, Quinn said: “In the three years since Digital Marketplace was launched, we have overhauled the public-sector procurement landscape, harnessing the expertise of innovative companies and giving thousands of SMEs the opportunity to supply to government for the first time. We’re now planning the next steps of our journey, making the platform and processes more commercial, more flexible and better tailored to the needs of users – both buyers and suppliers.”

The Digital Marketplace attracted in excess of a million visits in 2017 – equivalent to the cumulative total for both 2016 and 2017. In 2016/17 frameworks available through the platform contributed towards CCS delivering £725 million in savings including commercial benefits for taxpayers, the government claimed.

 

About the author

Sam Trendall is editor of PublicTechnology

Share this page

Tags

Categories

CONTRIBUTIONS FROM READERS

Please login to post a comment or register for a free account.

Comments

Which SME's and... (not verified)

Submitted on 2 February, 2018 - 13:15
Which SME's and how many?

Related Articles

‘Policy mandarins don’t get that engaged in reform’ – Francis Maude
20 November 2019

In an interview with the Civil Service World podcast, the former Cabinet Office minister discusses frustrations of attempts to push through digital and procurement transformation

Election 2019: Which party has most to say on digital, data and technology?
10 December 2019

Examining the language of each party’s manifesto reveals significant differences in the amount and focus of proposals related to technology and data policy – as well as in the wider themes of each...

Conservative manifesto: five tech takeaways
9 December 2019

Rounding up the Tories’ key pledges in the area of digital and data, including a new cybercrime force and tax incentives for investments in cloud computing

Manchester City Council seeks £100k director of IT
9 December 2019

Post comes with remit to spearhead tech transformation and manage £55m planned investment

Related Sponsored Articles

Three best-practice measures in the event of a data breach
3 December 2019

To have the best chance of an effective response and a full recovery, organisations should have a robust incident response strategy in place, says BT 

How to take control of your network
26 November 2019

We hear from BT about why delivering a great customer experience depends on your network visibility 

The future of voice: how to successfully transform your legacy voice estate
19 November 2019

Organisations are increasingly having to replace their legacy voice infrastructure as traditional analogue and ISDN lines are being phased out. BT talk about how they can help the transition...

Case Study: Cryptocurrency, connectivity and the cloud
12 November 2019

BT presents findings from cryptocurrency firm Gemini on how they're providing customers with direct connectivity thanks to the Radianz network