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

NHS’s new £450m deal will offer a ‘step change’ in IT for GPs
17 August 2018

The GP IT Futures framework aims to widen supplier base and choice, and could include tools such as video consultations and apps for practices to communicate with patients

Local government and the NHS do not want outsourced IT, studies find
2 August 2018

Research from Dods shows that most public sector workers are not in favour of bringing in commercial firms to provide their IT

Overambitious transformation plans to cause ‘ugly scrambling for resources’, predicts NAO chief
18 July 2018

Auditor general Amyas Morse flags up three key issues that government must focus on to improve its work with private-sector suppliers

G-Cloud 10 launches with 650 new suppliers
4 July 2018

A total of 3,505 firms are on the latest iteration of the framework with the government claiming more than 90% are SMEs

Related Sponsored Articles

Intelligent Connectivity: Boosting Flexibility and Control
13 August 2018

At BT, we realise that digital technology is changing the way we all do business. Make smart decisions with intelligent connectivity.

BT: Intelligent Connectivity is where it all begins. Smarter decisions are the end result
7 August 2018

At BT, we realise that digital technology is changing the way we all do business. Make smart decisions with intelligent connectivity.

Building nation-level defences to fight cyber crime
30 July 2018

BT's Mark Hughes argues that nation states should act now to put in place cyber defences to protect themselves from the most advanced threats ever seen.

The inaugural Chamberlain Lecture at the iconic BT Tower
23 July 2018

On the 4th June 2018, BT partnered with Cratus Communications and Public Policy Projects for the inaugural Chamberlain Lecture given by Lord Heseltine at BT Tower.