Defence and schooling see massive features in public sector IT spend, Tussell report finds

IT and tech suppliers to the UK public sector with the fastest-growing revenues elevated incomes by a mean of 1.8x and £3.8m every between 2023 and 2025. The fastest-growing corporations have been within the defence sector, with one firm – SRC UK – rising income by 16x throughout the interval.

These are among the findings of public sector IT analysis specialist Tussell in its annual Tech200 report on the fastest-growing tech suppliers to the general public sector.

The report additionally discovered suppliers within the classes of “IT companies” and “digital transformation” have been greatest represented within the 200-supplier listing. After defence, schooling was the sector the place the fastest-growing public sector suppliers have been discovered.

Most suppliers (69%) within the Tech200 have been UK-based, with US suppliers forming a big runner up (13%). US corporations noticed higher income progress than UK corporations, nevertheless. 

Tussell’s Tech200 is an yearly produced listing of the fastest-growing know-how suppliers to the UK public sector primarily based on income progress between fiscal years 2023-24 and 2024-25. It’s produced by Tussell in collaboration with The Knowledge Metropolis. Firms included should obtain at the very least £250,000 in UK public selector income throughout the first fiscal 12 months lined.

Headline figures for these included within the Tech200 embody a mean income progress of 1.8x and £3.8m. Greater than half of the Tech200 are small and medium-sized enterprises (SMEs).

The best rank when it comes to progress was led by US-based defence sector specialist SRC UK, with a income improve of greater than 16x. It specialises in knowledge companies and analytics, and underwent a spike in enterprise with the Ministry of Defence throughout the interval in query.

The best-growing non-SME was UK-based Roc Applied sciences, which got here in second place. Roc Applied sciences specialises in digital transformation, and grew revenues by greater than 10x primarily based on a surge in spending from UK universities.

The biggest variety of suppliers – 41 of them – that made it to the Tech200 have been categorised by Tussell as IT companies suppliers. After that, 32 have been categorised as suppliers in digital transformation and consulting, 28 in software program and techniques, adopted by 22 in well being tech, 14 in transport and 12 in cyber safety.

The sector with the best progress was defence and area – which included the perfect performing firm on the listing, SRC, talked about above – with common sector income progress of simply over 5x. Subsequent was instructional know-how, with round 2.7x income progress. Synthetic intelligence (AI) and robotics noticed progress amongst Tech200 corporations of two.5x, whereas cyber safety logged slightly below 2.5x.

Out-and-out AI corporations solely make up a small displaying on the Tech200 listing, with Tussell believing this displays its findings that the majority AI companies are at the moment delivered by main IT and tech suppliers somewhat than small specialist corporations.