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UK Government Breaks Promise To Use SMEs

eWeek - Despite promising to end the IT oligopoly of big businesses, government is ignoring SMEs

The UK government is doing less business with small and medium-sized enterprises (SMEs) than a few months ago, despite promises by Cabinet Office minister Francis Maude earlier this year to end the oligopoly of big business supplying government IT and open up the market to new providers.

At the first meeting of the ‘New Suppliers to Government’ working group, put together by the Cabinet Office, members highlighted that the government’s aspiration to place 25 percent of all its business with SMEs is in direct conflict with projects such as Sir Philip Green’s ‘Efficiency Review’,  which pushes for consolidation within the supply chain.

“There are two competing tensions inside the government,” said Mark Taylor, CEO of Sirius and lead for the New Suppliers to Government working group. “One of them is the Cabinet Office’s stated commitment to getting more SME involvement. However, the other drive within government is pushing things the other way.”