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Capita is biggest public sector software and IT services supplier

Karl Flinders

Capita has overtaken HP as the biggest supplier of IT services and software to the UK public sector after an 11% increase in sales in 2013 compared to 2012.

The figures, from analyst TechMarketView, revealed that Capita was the only company in the top six suppliers, in terms of total public sector revenue, to increase sales.

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The company, which reported sales of £1.59bn in 2013, pushed HP to second spot after the US supplier's sales dropped 10% to £1.48bn.

Both Capita and HP get 50% of their IT services and software revenue in the UK from the public sector.

Twelve of the top 20 suppliers reported a decline in their revenue.

TechMarketView said: “It is those players just outside the top 20 that are significantly outperforming the market – mid-tier alternatives, like Computacenter for infrastructure services or UNIT4 for ERP solutions; Indian outsourcers, like TCS and HCL, determined to replicate their UK private sector success; and management consultancies, like Deloitte and PA Consulting, experiencing a revival of their public sector fortunes.”

The analyst company cited Agilisys as an example of a mid-sized supplier that had made it into the top 20 for the first time, with sales worth £126m .

Indian suppliers TCS and HCL recorded 24% and 22% increases in sales, respectively, with TCS creeping towards the top 10 with £103m. HCL's UK public sector software and IT services sales were worth  £23m.

Top 10 suppliers of IT services and software to the UK public sector

1 Capita , £1.59bn, +11%

2 HP, £1.48bn, -10%

3 Capgemini, £1,03bn, -6%

4 Fujitsu, £889m, -1%

5 BT Group, £788m, -5%

6 IBM, £626m, -5%

7 Atos, £590m, +4%

8 Serco, £425m, +1%

9  Microsoft, £402m, +1%

10 CGI (inc Logica), £338m, -7%


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