Phoenix Software MD talks public sector growth and stepping into the spotlight

“We row our own boat,” Metcalfe says

Nowadays, Phoenix Software sometimes slips under the radar when discussing its larger parent, Bytes Technology Group.

But the business, acquired by Bytes in 2017, operates with a degree of independence, and a separate client book.

Now marking its 35th anniversary, Phoenix is looking to reintroduce itself to the channel - not as a sub-brand of BTG, but as a values-driven public sector specialist with ambitious plans to grow services and expand into new verticals.

“Phoenix was founded by two women in 1990 and I joined just a few years later,” says Clare Metcalfe, who became interim managing director in February 2024 after nearly three decades with the business, stepping up to full time MD in May that same year.

“We've always been culture-led, and even back then we were talking about psychological safety long before it became a buzzword.”

From its roots as one of the UK’s earliest Microsoft technical training centres, Phoenix has evolved into a managed service provider with an established base in healthcare, education, local government and blue light services.

Services now represent 15 to 20 per cent of its overall revenue - a figure Metcalfe says is modest in percentage terms, but strategically significant.

Despite being part of a listed group, Phoenix maintains its own leadership team, customer base and go-to-market strategy.

“We row our own boat,” Metcalfe says.

“Yes, we’re part of the same group, but we have our own brand, our own values, and our own customers.

“We’ll often bid against Bytes on frameworks - and that’s a good thing. It keeps us sharp.”

Public sector still makes up the lion’s share of the business, with over 3,300 customers across NHS trusts, universities, councils and emergency services.

Phoenix is a key supplier to NHS England and has become deeply involved in digital transformation tied to the government’s devolution agenda.

“What’s happening there is the demise of the existing structure and the transition to working with unitary councils.

“The government has put together a devolution plan to help bring those councils together and collaborate more effectively.

“We’re already experienced in this area - last year we supported Cumbernauld in North Yorkshire through a similar process - and we’re now working with quite a few councils in the same position.

“We’re also strongly partnered with Microsoft to help them navigate these changes.”

Now, Metcalfe says, Phoenix is turning its attention to new growth areas - including defence and mid-market corporate clients.

“We’ve recently signed some larger 1,000-seat corporate customers and are re-entering the private sector space in our own right,” she says.

“It’s still a single-digit percentage of the business, but it’s a big opportunity.”

The firm is also targeting growth in defence - particularly within the Ministry of Defence and its associated bodies - building on its strong track record in public sector compliance, security and infrastructure.

Phoenix’s hybrid working model, anchored in its North Yorkshire HQ, gives it the flexibility to scale service delivery.

While most consultants and SOC analysts work remotely, the company retains a collaborative in-office culture.

“We’ve got people from the SOC team in the office today, even though they’re normally remote,” says Metcalfe.

“That face time still matters - and because so many of us have worked here for years, the culture stays strong.”

With a new leadership chapter underway and plenty of headroom in both services and new sectors, Phoenix is ready to step further into the spotlight.