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July 28, 1994

LIFE GETS TOUGHER FOR THOSE TRYING TO DO BUSINESS WITH UK GOVERNMENT – REPORT

By CBR Staff Writer

Information technology companies looking for business from the UK government should target the Departments of Social Services and Defence and the Exchequer, says public sector research partnership Kable because they are the big spenders. London EC-based Kable has just published the Civil Service Information System Market Profile 1994-95 documenting how and where different government departments spend their information technology money. For example, although the amount the Department of Health spent on information technology was 41% of its gross running costs, in real terms this meant just ?134m in 1993, whereas the Exchequer’s spend was only 21% of total costs but in cash terms this meant ?630m. The UK government overall is committed to a ?2,500m information technology bill for 1994-95, but Kable calculates that spending on hardware will drop by 10%. Personal computers account for the biggest costs in the hardware field, with the largest purchasers being the Ministry of Defence which spent ?86m on the things in 1993. The most successful company is Compaq Computer Corp with 14% of the market – at street prices, the company did a total of ?30m of business. It is followed by Dell Computer Corp with 11.5%, and ICL Plc, which in the bad old days of single tendering, national champions and featherbedding, got most of the business, in third place with 9.5%. Kable says its document is aimed at information technology, consultancy and telecommunications companies seeking to do business with the government. The report, which costs ?2,250 is available from Kable, which was founded in 1990 with the remit to provide information on all aspects of the public sector’s use of information systems and telecommunications.

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