In this report we delve into our database of public sector contracts and spend to analyse the performance and strategies of the 34 'Strategic Suppliers' to government in 2018/19.
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In a climate of public controversy and investor scepticism about the government outsourcing model, it is easy to lose sight of the facts. Without them, it is impossible for firms to navigate a shifting market, for government to monitor value for money, or for the media to scrutinise public spending.
That is why we think it’s more important than ever to monitor the Strategic Suppliers: the 34 firms deemed so vital to the functioning of public services that the Cabinet Office centrally manages the government’s relationship with them.
This report is the latest in our series monitoring government spend with the Strategic Suppliers. In it we analyse the performance of the 34 firms in the government’s last financial year and examine the very diverse strategies these firms employ to survive and thrive in the public sector marketplace.
Key Findings:
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Central & Local Government spent more than £10bn on the 34 Strategic Suppliers in the 2018/19 financial year.
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However their strong market positions are under pressure – their market share declined by 15% year on year.
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There is considerable variance in their go-to-market strategies, even amongst those operating in the same sector.
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While Central Government is the main source of revenue for the Strategic Suppliers, Local Government appears to be under-penetrated by several of them.
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Four Central Government departments are responsible for three quarters of all spend with the strategic suppliers – the MoD, DfT, Home Office and DWP.
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Looking ahead, while some of the Strategic Suppliers face risk from upcoming contract expirations, others have seen particularly positive rates of revenue replacement from new contracts won.
Our full report delves deeper into the public sector performance of the firms, the contracts they won in 2018/19, how much the government spent on each firm and includes tips for developing your own strategy for the public sector market. Enter your details below to get it sent straight to you.
