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The present need to radically cut public expenditure provides a once in a generation opportunity to transform the efficiency of the public sector. In order to achieve this, the public sector needs to radically change its current business processes to achieve greater efficiency. This could be done through eliminating steps in the processes or changing the processes themselves. However, most public services rely on ICT systems to support its business processes and hence any change will necessitate changes to its legacy systems or their direct replacement. This is why the ICT supply chain to the public sector and the ICT marketplace is a critical component in the next few years.
The current ICT supply chain to the public sector is dominated by a group of 20 or so large ICT suppliers who account for over 80% of the external spending. It is well recognised within management that small and medium sized organisations are more innovative but the present public sector procurement practices tend to favour larger organisations. In order to achieve the innovation required to unlock the efficiencies that will transform the cost of delivering public services, then something must be done to allow the smaller and more innovative enterprise an opportunity to work with the public sector.