Digital Marketplace spending tops £3bn; SMEs take biggest share of the spoils

SMEs across the public sector have gained a greater share of the market, as Digital Marketplace spending tops £3bn.

The Government’s Digital Marketplace spending has slightly increased over the last quarter, with a higher percentage going to SMEs than ever before.

This quarter’s newly published sales data revealed that SMEs in the sector are having a larger impact on sales and transformation than ever before. Compared to last year, total sales reached £3.2bn with 48% spent on SMEs compared to 46.3% in the quarter before. The sales equate to a total of £1.43 for every £3 being spent on SMEs, improving on the £1.39 for every £3 spend on SMEs in previous results.

Warren Smith, Director, Digital Marketplace says: “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 a 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 3 years, to 2020, will see a step-change where these approaches are mainstreamed across government.”

Digital Marketplace spending tops £3bn; SMEs take biggest share of the spoils

The Digital Marketplace brings thousands of SME expertise to enable digital transformation.

 

The latest figures follow the Digital Marketplace celebrating its third year of operating, after being established by Crown Commercial Services (CCS) and Government Digital Service (GDS) in 2014.

Thousands of SMEs across the public sector are signed up to the Digital Marketplace, which has increased significantly over the last year. It is evident that the Digital Marketplace is drumming up a lot more business for the public sector and SMEs as figures show that last year alone 1million, which equated to the same number over the entire two years before.

The digital marketplace allows the public sector to procure a range of goods and services, hosting CCS frameworks including G-Cloud, Digital Outcomes and Specialists and Crown Hosting Data Centres to better deliver the services that are offered.

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Niall Quinn, Director, Technology Strategic Category for CCS, said:  “In the three years since the 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 the 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.”