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Competition and Complexity: An Overview of the Local Government Applications Market

Competition and Complexity: An Overview of the Local Government Applications Market

Market Study
Published: April 2013
Pages: 40
Research from: Kable
Sector: Information & Communications Technology

From: GBP 1884.00
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Product Synopsis
This report aims to help suppliers address a complicated market by:

- Highlighting which of the many market segments represent the best opportunities.
- Identifying important procurement trends from recent tenders by local authorities.
- Explaining who the leading suppliers are overall and in each market segment.
- Assessing the capabilities of the leading suppliers overall based on coverage and ability to respond to procurement trends.

Introduction and Landscape
Applications used by local authorities perform a diverse range of functions, and each one is often highly specialised, with over 1,700 suppliers to this market. With councils looking to improve service delivery and make cost-savings, the range of applications from different suppliers presents a significant challenge. Nevertheless, a small group of leading suppliers control a large part of the market - including both corporate systems and those used by front-line services. But the market is changing, and suppliers, large and small, will need to respond to important procurement trends to find new opportunities.

Key Features and Benefits
Kable covers the use of ICT in the public sector across England, Scotland, Wales and Northern Ireland.

Key Market Issues
- Gain insight into the UK local government applications market.
- Gain insight into the best opportunities.
- Gain insight into important procurement trends.
- Gain insight into who the leading suppliers are.

Key Highlights
- Spend on applications and related services by councils totalled £848.8m in 2012/13. Local authorities operate and manage a vast range of software applications, some of which are corporate but many are specific to individual service directorates. The market is extremely diversified and specialised, with more than 1,700 suppliers as well as in-house developers, and this limits integration.
- However, just six suppliers control over half (51.27%) of the market: Microsoft - the established supplier of essential productivity applications to enterprise; leading managed service providers, Northgate, Capita and Civica - all of whom have a large footprint in a number of key markets; and unified enterprise resource planning (ERP) providers SAP and Oracle - with strong coverage of back office systems. Given their wider coverage, established infrastructure and the ability to deliver managed services, these suppliers will be harder to displace. Such is the importance of applications that they represent attractive partners for non-software suppliers looking to increase penetration of the local government ICT market.

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