Capita Edges Out HP For UK Public Sector Top Supplier Spot

Capita is now the biggest supplier of IT services and software to the UK public sector, edging out long time rival HP, according to fresh research from analyst house TechMarketView.

The firm's number crunchers say the firm scored an 11% increase in sales in 2013 versus 2012 - and was indeed the only company in the top six suppliers studied to increase its public sector market share. Capita reported total revenue of £1.59bn for the FY 2013, while HP sales dropped 10%, to £1.48bn.

Both firms are said to get at least half of their total UK IT services and software revenue from the public sector.

Firms in the top 10 apart from Capita and HP include Capgemini, Fujitsu, IBM, BT, Serco and Microsoft.

Mid Range Firms Coming Up Fast

In terms of the big picture, though, it looks like small may be becoming more beautiful - as the majority (12) of the top 20 suppliers the firm covered posted declines in revenue.

“It is those players just outside the top 20 that are significantly outperforming the market," believes the analyst group.

By this it means "mid-tier alternatives" like Computacenter for infrastructure services or UNIT4 for ERP solutions or Indian outsourcers like TCS and HCL, which it sees as being "determined to replicate their UK private sector success."

Meanwhile, traditional management consultancies such as Deloitte and PA Consulting seem to be experiencing a "revival" of their public sector fortunes," notes the firm.