Capita retains public sector crown

TechMarketView's latest rankings hint at détente between public sector suppliers and government

Capita has clung onto its position as the UK's largest public sector IT software and services suppliers amid a wider rebound in sales among top suppliers in the market.

According to analyst TechMarketView's latest rankings, Capita's sales of £1.78bn during the period under review enabled it to edge out HP and Capgemini for the top spot for another year.

The analyst's top-20 list, which also featured the likes of Civica and Northgate, was based on the latest available financial information of each entrant.

Some 13 of the top 20 suppliers saw revenue rise amid signs that the frosty dynamic between the top IT suppliers and a cost-cutting government is beginning to thaw, TechMarketView said.

A year previously, the majority showed drops in their revenue as the government's drive to squeeze savings from them took their tool.

"It is our view that this relationship is improving," the report stated.

"This stems from a maturing of approach on both sides. The Government is showing a readiness to reengage with large suppliers that are willing to adapt their approach in line with the Cabinet Office's stated direction of travel."

Capita saw public sector sales rise by 12 per cent, with about half of that stemming from acquisitions, TechMarketView estimated. Not only that, but the London-listed reseller and services firm also topped three of the six sub-sectors: local government; education; and police.

Second and third-placed HP and Capgemini were among only six of the top 20 outfits to suffer a revenue shrinkage. HP's haul was four per cent smaller than last time around at £1.42bn, while Capgemini's return in the sector dropped by two per cent to £1.08bn.

Average growth among the top ten suppliers was 3.5 per cent, while the equivalent figure among players ranked 11-20 was 2.4 per cent.

Corporate VAR and services firm Computacenter, although remaining outside the top 20, was labelled 'one to watch', alongside ERP outfit Unit4 and Virgin Media Business.

Computacenter's public sector sales grew by about ten per cent to £51m and it could breach the top 20 in the next couple of years if it sustains its current growth rate, TechMarketView said.

Of the other three sub-verticals, HP named as the top defence supplier, Capgemini topped the rankings for central government and Atos finished top of the pile in health.