Capita, Capgemini, CGI, Atos and BAE Systems were the biggest winners in IT consultancy spending from the UK government in 2015.
The UK British government, including central and local, spent the most cash with Capita in 2015 – taking the top spending spot from Capgemini.
Capgemini has been taking the lion's share of spending for years – but its bloated £11bn Aspire contract with HMRC is finally being wound down, with hundreds of staff 'in-sourced' to the department. See also: HMRC's Aspire contract costs to hit £11bn after 'risky' replacement plan
Here are the top 20 IT consultancies by spend from January to September, 2015:
- Capita - £727,345,025.3
- Capgemini - £517,369,325.3
- CGI - £390,618,733.3
- Atos - £274,035,765.1
- BAE Systems - £252,349834.8
- Fujitsu - £221,705,130.7
- CSC Computer Sciences - £178,911,680.1
- IBM - £134,552,016.2
- BT Global Services - £130,017,201.9
- Mouchel - £121,636,843.6
- PWC - £84,245,768.42
- Grant Thornton - £61,604,451.64
- Oracle - £51,470,349.82
- Accenture - £45,846,091.9
- Agilysis - £45,814,486.78
- Steria - £41,859,538.65
- KPMG - £35,647,371.45
- Deloitte - £33,925,514.69
- Lockheed Martin - £32,843,923.95
- AECOM - £28,857,459.72
The data was compiled by Spend Network. Spend Network gathers open data from central and local government and analyses it for patterns and trends.
Cabinet Office data was left out of the equation. Although it’s a big buyer, the department has only just finally released up-to-date spending data. We’ll have that data for our next update.
Supplier spend for Capita was highest at Essex County Council and highest spend for Capgemini was at HMRC.
For the full year of 2015 and based on the existing available data, Spend Network predicts the total spend on Capita will be over the £1 billion mark – with Capgemini at £724.4 million and CGI at £511 million.
“Capita has been doing well in local government,” says Jessica Figueras, chief analyst at Kable. “Capgemini is certainly one to watch because the Aspire contract is being unwound, so we would certainly expect Capgemini to come down over time.”
“[This] reflects the fact that Capita sells quite widely across different parts of the public sector,” Figueras explains. “Capita goes quite broadly. Also, Capita tends to do contracts which have big workforces, so with all the business process outsourcing and the IT outsourcing contracts, they tend to be very big because there are a lot of people involved.”
As for SMEs, well – it’s unlikely many of the main suppliers will be displaced from the top 20 - for now - though they may shift up and down the ranks.
“The bigger picture is the need to get IT spend down and to improve performance – I think if government can do that using large system integrators it will,” Figueras says.