UK Central Government: IT Services Trends and Opportunities
This report provides an update on the trends and opportunities for suppliers of IT services to the UK central government market. It supports our Market Trends forecast data for the UK central government market, as well as our UK central government player rankings
Executive summary
In a nutshell
Ovum view
Key messages
New government, new ICT strategy
Key priorities
£6 billion spending cuts will largely impact central government
Challenges for central government organisations
Further belt tightening
Cabinet Office’s Structural Reform Plan endorses efficiency in IT
Gershon, Read, and Suffolk will continue to drive through change
Greater autonomy will drive outsourcing
Suppliers face most challenging time for a decade
Impact on suppliers and the market
Cancelled programs: impact on vendors
Capita to be dealt blow by Child Trust Fund termination
Capgemini loses out following ContactPoint termination
IBM faces likely impact from National Identity Register cancellation
Where does this leave other £100 million+ deals?
Potential opportunities for savings
‘At risk’ programs
TCS’ £600 million contract with PADA to be reviewed
DWP frameworks face renegotiation
Private sector will play a key role in delivering the savings
Growth must come from outside government
IT service suppliers hold a trump card
Project services providers will face tough time
New rules of the game call for new ITS strategies
Renegotiation, renegotiation, renegotiation
De-risking ICT programs is key
Partnering between suppliers will be expected
Opportunities for suppliers
It’s not all doom and gloom
Outsourcing
Business process outsourcing
Shared services
G-Cloud
Appendix
Further reading
In a nutshell
Ovum view
Key messages
New government, new ICT strategy
Key priorities
£6 billion spending cuts will largely impact central government
Challenges for central government organisations
Further belt tightening
Cabinet Office’s Structural Reform Plan endorses efficiency in IT
Gershon, Read, and Suffolk will continue to drive through change
Greater autonomy will drive outsourcing
Suppliers face most challenging time for a decade
Impact on suppliers and the market
Cancelled programs: impact on vendors
Capita to be dealt blow by Child Trust Fund termination
Capgemini loses out following ContactPoint termination
IBM faces likely impact from National Identity Register cancellation
Where does this leave other £100 million+ deals?
Potential opportunities for savings
‘At risk’ programs
TCS’ £600 million contract with PADA to be reviewed
DWP frameworks face renegotiation
Private sector will play a key role in delivering the savings
Growth must come from outside government
IT service suppliers hold a trump card
Project services providers will face tough time
New rules of the game call for new ITS strategies
Renegotiation, renegotiation, renegotiation
De-risking ICT programs is key
Partnering between suppliers will be expected
Opportunities for suppliers
It’s not all doom and gloom
Outsourcing
Business process outsourcing
Shared services
G-Cloud
Appendix
Further reading
LIST OF TABLES
Table 1: Three key elements of the ICT Strategy within the Structural Reform Plan
Table 2: List of IT and BPO programs to be cut or renegotiated in 2010
Table 3: The six largest central government IT and BPO programs
Table 1: Three key elements of the ICT Strategy within the Structural Reform Plan
Table 2: List of IT and BPO programs to be cut or renegotiated in 2010
Table 3: The six largest central government IT and BPO programs
