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CCS shows SMEs win half of digital framework spending

02/02/18

Latest figures show central government continues to dominate business on procurement frameworks

Almost half of the money spent on digital services through the Crown Commercial Service (CCS) frameworks has gone to SMEs, according to figures newly released by the organisation.

Abstract of different digital devicesIt says that smaller firms now account for 48% of the value going through the three frameworks – G-Cloud, Digital Outcomes and Specialists, and Digital Services – since 2012, with the total since that date reaching £3.2bn

The new sales figures show that G-Cloud accounts for by far the largest proportion, totalling £2.85 billion up to the end of last year, and the biggest shares for SMEs, which accounted for 48% of the value and 71% of the volume in the framework.

While they also indicate that the larger suppliers are still winning the bigger deals, they show the frameworks are providing a route into the public sector market for SMEs.

CCS added that the frameworks helped to deliver £725 million in savings over 2016-17.

The figures have been published shortly after the third birthday of the Digital Marketplace, which was created by CCS and the Government Digital Service to make procurement easier and more transparent.

Three-year overhaul

Niall Quinn, director, technology strategic category for CCS, 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 figures also show that central government accounts for the majority of business in all three frameworks: 83% for G-Gloud, 89% for Digital Outcomes and Specialists, and 90% for Digital Services.

Image by GOV.UK, Open Government Licence v3.0

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