Home Open Access News Government Almost half of government digital spending now goes to SMEs

Almost half of government digital spending now goes to SMEs

August 24, 2018

The latest figures from Digital Marketplace show that almost half of all government digital spending went directly to small and medium-sized enterprises

Small and medium-sized enterprises (SMEs) are reaping the benefits of a flourishing Digital Marketplace by accessing almost half of public sector spend on digital, data and technology services, the Minister for Implementation Oliver Dowden has announced today.

Over £1.9bn has been spent with SMEs since 2012, the equivalent of £1.35 out of every £3 spent by government.

The government has committed to levelling the playing-field for SMEs and support a more diverse supplier base. The Digital Marketplace was established to simplify the application process for accessing public sector digital contracts.

Minister for Implementation, Oliver Dowden, said: “This is excellent news. It’s great to see small business taking full advantage of the Digital Marketplace to help drive innovation in the public sector.

“The Digital Marketplace is enabling small businesses to work in partnership with the public sector to drive the UK’s digital transformation. Small businesses are the backbone of the British economy and this government is committed to help them prosper.”

Thousands of SMEs are now signed up to provide their digital, data and technology services to government, and public bodies are utilising their expertise to drive the UK’s digital transformation. In the last year alone, £1.3bn has been spent through Digital Marketplace, with £602m going to SMEs.

One example is i-movo Limited, an SME based in Southwark, who won a DWP contract through Digital Marketplace. The company now delivers an online voucher system to support benefit claimants who are not able to access their payments through the bank.

David Tymm, CEO of i-movo said: “The process of joining and winning through the Digital Marketplace is straightforward even for niche solution providers like us.

“We worked in partnership with our customer to deliver a solution which supports vulnerable citizens to access government services, and which at the same time will enable us to grow our reputation and our business.”