A large majority of suppliers on G-Cloud 10 have failed to make any sales through the channel, according to an analysis by research company Tussell.
It has published a breakdown of sales through the procurement framework, which ran for 12 months until the beginning of July, showing that just 480 out of 3,474 suppliers, amounting to 14%, actually won any of the business.
A more positive picture emerged in the performance of SMEs through the different versions of G-Cloud, going back to 2012. They have won 45% of the business totalling £1.13 billion, compared with 55% totalling £2.2 billion for larger firms.
The analysis forms part of its new guide to suppliers on how to win more business through G-Cloud.
Need to be proactive
Gus Tugendhat, founder of Tussell, commented on the report: “Being listed on G-Cloud is not an alternative for having a business development strategy. To actually win business off the framework, suppliers still have to be proactive – mapping the market, pre-engaging with prospects and identifying go-to-market partners.”
“The fact that SMEs win a higher proportion of contract value than in public procurement at large demonstrates that it’s the quality of the bid, not the size of the bidder, that counts.”
The report includes advice for suppliers including the need to anticipate upcoming opportunities in advance of tenders arising, and identifying which competitors they have the potential to dislodge.
Big names were more prominent for the largest shares of the business, according to the Tussell analysis. Since 2012 the leader by value has been software consultancy Equal Experts with £137 million, followed closely by Capgemini with £136 million.
Deloitte comes next with £103 million, then PA consulting with £92 million and UKCloud with £86 million.
The report also shows that cloud that most valuable lot within the framework has been for cloud support, which accounted for 67% of its value in 2018.
Central government has been by far the largest user since 2021, accounting for £3.3 billion of the business, followed by healthcare with £227 million, local government with £203 million and devolved administrations with £118 million.
Addition on 18/11 - The Crown Commercial Service, which manages G-Cloud, has today provided information disputing some of the figures in the report, which it said were only valid until the end of 2018.
It said that 965 suppliers had transacted through G-Cloud 10, amounting to 27.5% of the total and leaving 72.5% without business.
In addition, it said the most recent figures showed that larger suppliers had won £2.75 billion of business since the creation of G-Cloud, and SMEs had won £2.35 billion, accounting for 44% of the total.
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