Public sector opportunities remain in face of cuts

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Public sector opportunities remain in face of cuts

Simon Quicke

It might take a couple more weeks for the details of where the cuts announced in the Comprehensive Spending Review will fall but the consensus is already emerging it presents mixed opportunities for the channel.

On the one hand several vendors have been quick to point out that only by using technology can the efficiency savings the government needs to make be found without harming performance, but on the other there seems to be some indication the IT spending that will occur could be handled directly.

Given the timing of the Spending Review just a week after Sir Philip Green delivered his report on how the government can cut waste by buying direct the concerns are that his advice is going to be widely acted on.

"Sir Philip Green's recommendations will also be put into practice. Centrally managed commodity procurement (where centrally negotiated deals will be open to local government too) is expected to save £400m a year," said Tola Sargeant, research director at TechMarketView.

"Not surprisingly, many departments specifically highlight their intention to spend less on IT and consulting in their bid to make savings," she added.

But with £650m being put to one side to fund the fight against cyber security and the expected surge in outsourcing there continue to be some opportunities around the cuts for resellers.

"So, despite the unprecedented level of cuts to public spending - £81bn over four years - and a UK public sector software and IT services (SITS) market will be much tougher than it has been for many years, there will remain opportunities for SITS suppliers," added Sargeant.


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