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UK government tech tenders down

November 29, 2016

brexittenderA technology solutions provider claims tenders are down by 20 percent after the Brexit vote in June.

In a press release, hSo stated that “uncertainty around Brexit has caused a slowdown in the number of government tenders to the technology sector”, as in the “run-up to the Brexit vote in June, government tenders were steadily being issued”, but since the vote “there has been a slowdown”. Prior to the vote, there had been 815 tenders per month “on average”, but in the five months since, there have “been only” 652 per month, a decline of 20 percent.

The company added that “there remains a strong pipeline of government tenders being issued to private sector firms in a bid to drive efficiencies and cost savings”, but that “the evidence suggests that the uncertainty caused by Brexit is the reason for the marked slowdown, stalling the good progress that had been made in the run-up to the referendum when many more competitive tenders were being issued”.

Additionally, hSo stated that “up until this summer the process has helped government departments cut costs” on procurement for technology “by overhauling their internal infrastructures and using alternative IT and network solutions that are more cost-effective than better-known household names”.

Chris Evans, Managing Director of hSo, said: “There is plenty of economic data and evidence suggesting that the UK economy has been resilient in the face of the Brexit vote. We were particularly encouraged by the Chancellor’s Autumn Statement with the focus on investment in infrastructure and improving productivity, which will give rise to many more opportunities for hSo in the private sector as companies find ways of becoming more efficient and keeping costs down.

“However, in respect to public sector government tenders issued, there has been a slowdown since the EU referendum. It’s understandable, given we have recently had the appointment of a new Prime Minister that the new administration is accustoming itself and looking to make its mark. However, this shouldn’t prevent them from maintaining the momentum that was evident earlier in the year ahead of the Brexit vote.

“We saw important infrastructure projects such as Hinkley Point temporarily put on hold straight after the referendum, but we remain optimistic that the news flow around these large scale national infrastructure projects will not impact the government’s tendering process into the New Year. However, with the recent political uncertainty presented by Trump’s victory in the US, there are potentially more reasons for inertia to set in at a time when the UK economy needs as much help and stimulus as possible.

“Before the Brexit vote there was clearly a big push by private and public sector SMEs to reign in their IT and network infrastructure spend, but since then as economic activity has slowed there’s now even greater reason for businesses to look at more cost efficient network, telephony and hosting solutions. Just as the political, financial and services sector landscapes are being disrupted, hSo is disrupting the technology space by challenging the more established traditional providers of choice.”

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