Public Services > Central Government

Digital Marketplace spend exceeds £1bn by end of 2015

Neil Merrett Published 12 February 2016

Sales figures through government procurement platform driven predominantly by total G-Cloud spend, which reached over £959m in December

 

Total sales through the Government's Digital Marketplace platform exceeded £1bn by the end of 2015 in what is seen as a landmark moment for Whitehall's ongoing technology procurement reforms.

The spending has been predominantly driven through G-Cloud, one of a number of frameworks hosted on the marketplace.

In updated figures provided by the Crown Commercial Service, sales through G-Cloud alone reached £959.5m as of December. On a value basis, 51% of this spending has gone to small and medium-sized enterprises (SMEs) - a figure rising to 61% on volume terms.

Demand through the framework that was first launched in 2012 has largely been driven by central government departments, which have been responsible for 75% of all sales.

Currently in its seventh iteration, G-Cloud was devised as a means to try and streamline the acquisition of commodity cloud services, as well as broadening the overall supplier base for the public sector.

CCS has also updated its spend figures for the Digital Services framework (DSF), also hosted via the Digital Marketplace. Total sales through the framework as of December reached £43.6m, with 71% of this spending going to SMEs on a value basis.

According to the CCS figures, Central Government was responsible for 87% of all spending through DSF.

The current iteration of the Digital Services Framework is expected to be replaced on February 29 with the planned launch of the Digital Outcomes and Specialists (DOS) agreement.

DOS is intended to try and reflect a shift towards supplying the public sector with a wider number of digital outcomes rather than focusing solely on skilled individuals.

Addressing the updated figures, Cabinet Office minister Matt Hancock praised the Digital Marketplace for allowing the public sector access to a larger number of suppliers and services, particularly with regard the government's commitments to boost SME involvement.

"I've seen for myself how innovative smaller businesses can be, and I'm really pleased that our reforms are giving these businesses a chance to help us deliver the world class public services that people expect," he said.

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