You are here: silicon.com > Public Sector > News

SMEs: 'Life-blood of government IT'?

Only if they can muscle in on the big boys...

Tags: sme, minister, goverment, healthcare

By Gemma Simpson

Published: 24 January 2007 17:05 GMT

A government minister has called for smaller tech companies to play a bigger part in the development of technology to be used in healthcare.

Margaret Hodge, minister for industry and the regions, today said SMEs play an "absolutely crucial role", noting their ability to tap into niche markets.

silicon.com Public Sector

Get the latest public sector news straight to your inbox. Sign up for the PS newsletter today!

Speaking at the London Telehealth Symposium, Hodge said SMEs must contribute alongside the "titans of the industry".

But how likely is it that SMEs will be able to win out over the public sector's usual IT suppliers? In 2005, the Office of Government Commerce revealed 11 companies win 80 per cent of government IT contracts in the UK.

One route is to encourage collaboration between academia and wider industry as so many tech SMEs start as university spin-outs. Funding for research, in and out of universities, is growing but there is still "a long way to go" to increase this type of co-operation, which will then feed into healthcare, Hodge added.

The government has tried to give smaller companies a better shot at bidding for public sector contracts following the launch of a website last year listing 7,000 new contracts worth less than £100,000.

Small and medium-sized suppliers have previously accused the government of running a "closed shop" and preventing SMEs from competing with the bigger IT vendors for public sector contracts, some of which are in the NHS.

  1. Zones
  2. Management
  3. Networks
  4. Software
  5. IT Services
  6. Hardware
  1. Verticals
  2. Public Sector
  3. Financial Services
  4. Retail & Leisure

silicon.com Public Sector
Get the latest public sector news straight to your inbox. Sign up for the PS newsletter today!


  • Jobs
Infrastructure Manager

As the Infrastructure Manager you will be leading a team of six highly skilled individuals in the UK and India and liaising with the different R&D ...

Procurement Manager

To report to the Head of transaction Management (Telecom Services) on procurement aspects and support the strategic initiatives of procurement ...

License Manager - Sourcing / Asset Manager - Vendor Management - BANK

This role will involve engaging with technical leads to understand license entitlement and usage models and with Sourcing to negotiate cost-effective ...

Nick Heath
Let's shine a light into the public sector IT money pit
With £16bn being spent, why is productivity still falling?

Tim Ferguson
BBC is taking tech seriously, so give it a break!
Auntie is the envy of the world but doesn't get the credit it deserves at home...

Peter Cochrane
Peter Cochrane's Blog: Open info for all?
Government stonewalling citizens

Nick Heath
Home Office CIO on taming tech and why ID cards are good news
Interview: Annette Vernon, Home Office CIO

Nick Heath
NHS records, Google and Microsoft: Where do you want your data?
Politicians: Heal thyself

Alan Hunt
NHS network: Time to get secure
Patient data in need of a check up

Agenda Setters 2009
Welcome to the ninth annual Agenda Setters poll – silicon.com's list of the top 50 most influential individuals in the technology and IT industries, from techies and CIOs to entrepreneurs and business leaders. Find out more in our latest special report.




Quick Sitemap Links: