Digital ProcurementCouncils overpaying for IT as ‘unscrupulous suppliers’ take advantage of Brexit confusion

Councils overpaying for IT as ‘unscrupulous suppliers’ take advantage of Brexit confusion

One council charged 856 per cent margin

A new study has found that councils are paying over the odds for IT products thanks to excessive mark-ups blamed on Brexit.

According to the IT Margins Benchmarking Study, an annual report published by KnowledgeBus, councils are paying an average margin of 16%. However, in one case, a local council was charged a shockingly high margin of 856%.

Best procurement practice, as guided by the Society of IT Managers, states buyers should not pay more than a 3% margin. The police, as a sector, came out on top in this study, paying on average 11% for their kit.

Commenting on the report’s findings, Al Nagar, head of benchmarking at KnowledgeBus, said: “Although there was a period of rapid inflation in the tech market not all prices increased. Some product prices stayed the same and some went down. But what we witnessed was unscrupulous suppliers taking advantage of the perception that price increases were going up across the board.

“Many organisations – without the tools to check what was really happening in the market – were caught out by these actions.”

Related Articles

Redcar and Cleveland signs deal to transform revenues and benefits services

Digital Customer Service Redcar and Cleveland signs deal to transform revenues and benefits services

1m Austin Clark
New framework agreement for Yorkshire and Humber

Digital Procurement New framework agreement for Yorkshire and Humber

2m Austin Clark
Continuing austerity ahead as Government grapples with £300bn public spending gap

Data Insight Continuing austerity ahead as Government grapples with £300bn public spending gap

2m Austin Clark
Capita announces £513m annual loss

Digital Procurement Capita announces £513m annual loss

2m Austin Clark
Q&A: Managing shadow IT

Data Insight Q&A: Managing shadow IT

2m Austin Clark
Government ‘must play central role in AI development’

Digital Procurement Government ‘must play central role in AI development’

2m Austin Clark
SAP’s new indirect access pricing model: What it means for customers

Digital Procurement SAP’s new indirect access pricing model: What it means for customers

2m Guest Writer
Council generates revenue from direct services

Digital Procurement Council generates revenue from direct services

3m Austin Clark