OFT market study report on the supply of ICT to the public sector

The Office of Fair Trading (OFT) finds a significant imbalance of power between information and communication technology (ICT) suppliers and public sector buyers that prevents effective competition.

What’s the issue?
Around £14bn was spent by the public sector on ICT in 2011–12, accounting for around a quarter of the overall spend on such products and services in the UK. The procurement of ICT represents around six per cent of the UK’s overall public sector spend on third-party suppliers. The OFT conducted a market study in order to better understand the nature of the market for the supply of ICT to the public sector and the degree of competition that exists between suppliers, focusing its inquiry on commercial off-the-shelf (COTS) software and business process outsourcing (BPO), which constitute around half of this figure.

What’s the development?
The OFT has published its final report on its market study into the supply of ICT to the public sector. The report found that these markets possess a number of features that prevent competition from working as effectively as it should and that purchaser behaviour was, to a considerable extent, responsible for this…

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