The Emerging Landscape for UK Government IT Contracts

Introduction

A perfect storm has hit the UK public sector IT market. The British government is looking to reduce departmental spending drastically, with IT costs one of the key target areas. In this brief Ovum analyzes the current situation and the likely shape of things to come.

Features and benefits

• This brief highlights the drivers for change in the UK public sector IT market.
• It sets out a number of options for the government and its suppliers to share the costs and risks of investing in IT.

Highlights

The pressure is on the government to continue to deliver public services and achieve some degree of ongoing modernization at the same time. The onus of investment in IT projects is going to shift towards suppliers. Output-based pricing and risk/reward-style contracts are going to come to the fore.

Your key questions answered

• The outlook for public sector IT in the UK
• Cost- and risk-sharing options for IT suppliers
• The spending review and getting clues from the Cabinet and departmental plans
• The likely effects on the supplier landscape