A National Audit Office statistic stated that until recently, 80 per cent of central government IT work was undertaken by just 18 large suppliers.
The government has set a target of reducing this dependency – and thus the whopping £14 billion it spends annually on IT – by increasing the number of services delivered through SMEs. Today the target is to spend 25 per cent with SMEs, with the goal to grow this to 50 per cent.
“We have examples of a service costing £50,000 from one supplier on the G-Cloud, and one of our traditional suppliers quoting £5 million. That’s not a rare occurrence,” says UK Government Chief Technology Officer, Liam Maxwell.
This changing shift to a multi-sourcing cloud procurement model will prove a hurdle for many public sector departments to overcome.
This whitepaper, from Outsourcery, looks at the most effective routes for disaggregation and the pitfalls to avoid when procuring smaller, modular services from a much deeper pool of providers residing on the G-Cloud.
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