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The UK software services market is booming, with revenue expected to reach $46.72 billion by 2028. This represents a 41.1% increase from 2023, making it one of the fastest-growing segments of the UK technology sector. Key drivers include increasing demand for cloud-based solutions, digital transformation initiatives, and investments in artificial intelligence and machine learning.
The UK government is a major player in the software services market, with annual procurement spending exceeding $1 billion. This spending is driven by a wide range of needs, including the development and maintenance of government systems, the delivery of digital services to citizens, and the implementation of cybersecurity measures.
The main software services products and services procured by the UK government include:
Cloud-based applications: Software as a service (SaaS) solutions are increasingly being used by the government to deliver services such as online tax filing and benefits administration.
Enterprise resource planning (ERP) systems: ERP systems help government departments manage their finances, human resources, and other critical operations.
Cybersecurity solutions: With increasing cyber threats, the government is investing heavily in cybersecurity software and services to protect its data and systems.
Custom software development: The government sometimes needs to develop custom software applications to meet specific requirements.
The top authorities responsible for software services procurement in the UK include:
Crown Commercial Service (CCS): The CCS is a central government agency responsible for procuring goods and services for the public sector.
Government Digital Service (GDS): The GDS is responsible for setting digital standards for the government and driving digital transformation across the public sector.
Department for Digital, Culture, Media and Sport (DCMS): The DCMS is responsible for developing and implementing digital policy for the UK.
Some of the top winners of UK government software services procurement contracts in recent years include:
Accenture
Capgemini
IBM
Microsoft
Serco
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