Public sector bears fruit for SMEs
Smaller players start to get hands on elusive contracts
Smaller channel players have finally started to cash in on the public sector contract that have previoulsy been out of their reach.
Research by the Department of Trade and Industry (DTI) released last week, found that greater numbers of small businesses are winning public sector contracts over larger firms. The DTI accredits the uptake to small firms' commitment, service delivery and innovative solutions.
Stephen Alambritis, head of parliamentary affairs at the Federation of Small Businesses, said in the past the public sector has gone with large IT firms due to brand pull, but small firms are now winning more trade.
"Previously, small businesses were not given the opportunity to pitch for contracts, but now local business will be given to local firms.
"Smaller firms offer better after sales knowledge of the product and a more loyal approach, but they must still come up to standard," he added.
Nick Kalisperas, director at IT trade body Intellect, said smaller firms have the capabilities to offer niche skills to public sector projects.
"There needs to be a balance that SMEs go for the right contracts, but this trend will be welcomed. Some public sector customers are breaking down their contracts and that offers a greater opportunity to smaller companies," he said.
Gordon Davies, commercial director at public sector VAR Compusys, said: "A lot more business will go through smaller businesses being pulled in by larger integration houses.
"Small businesses offer value for money, flexibility, honesty and the work ethics are very good as they are closer to the customer. The larger integrators have a consistently poor record with government projects and small firms have the ability and care to take over," he claimed.