£1.2 billion has been spent on SME digital services in the past 5 years by the UK Government.
Figures published by the Cabinet Office and Government Digital Service suggest that during the same period, the public sector spent £2.6 billion on storage and IT support. An average of £1.39 per £3 spent was with Small and Medium-sized businesses.
The Digital Marketplace system, the government say, has helped to save £725 million of taxpayer money from the Crown Commercial Service in the past year.
Caroline Noakes, Resilience and Efficiency Minister states: “Small businesses have an important role to play in helping the government to spend taxpayers’ money wisely.”
“That is why we continue to find ways of improving how the public sector – schools and hospitals, for example – puts money back into services for those they look after.”
“The money saved in Derby is a good example of how smart procurement can make a real difference to people’s lives.”
Derby City Council saved thousands of pounds by switching suppliers to local, Stafford-based SMEs.
The Digital Marketplace is said to be a major driver in relationship building between the government and SMEs, something that remains a high priority for ministers.
Director of the Digital Marketplace, Warren Smith says: “We are continually focused on breaking down the barriers to entry for SMEs to do business with the government, for example, by simplifying the application process.”
“We are also breaking down the traditionally large contracts into smaller ones, which favour a more diverse range of suppliers and help the government to buy services more efficiently.”