“ In the past, the government procured all of its IT needs together with simple commodity requirements like email, collaboration and word processing procured alongside complex ones such as systems related to welfare and taxation. And contracts were consistently awarded to a limited number of very large suppliers on long-term exclusive contracts. As a result there was inadequate competition and an abdication of control . The concept of having one supplier, aggregated supply, increased project risk and removed competitive tension.
“ At the same time smaller, more innovative and efficient suppliers were finding themselves locked out of the supply of services to Government because of what was described by Parliament as a powerful "oligopoly" of large suppliers. Procurements took so long only the big companies could absorb the cost – which they naturally passed on to us. All in all, we had an approach that was bad for users, bad for the taxpayer and bad for growth .”
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SPRINT 13 Closing remarks Stephen Kelly, Chief Operating Officer for Government - Cabinet Office
Stephen KellyChief Operating OfficerUK Government ERG
“Contracts were consistently awarded toa limited number of very large supplierson long-term exclusive contracts…… there was inadequate competitionand an abdication of control.” GDS ERG
“Smaller, more innovative and efficientsuppliers were finding themselveslocked out of the supply of services toGovernment because of the powerful"oligopoly" of large suppliers……we had an approach that was bad forusers, bad for the taxpayer and bad forgrowth.” GDS ERG
The prevailing models fortechnology in Government were:1.Multi-year sourcing contractsto oligopoly suppliers1.Multi-year, rolling consultancyengagements GDS ERG