The UK government has a stated goal of 25% of all IT spending currently but has not been able to meet that goal as it only has achieved 10.5% and now they have decided to double down and attempt to get 50% to SMEs. This is a very ambitious goal. They have removed the pre-qualification step of tendering for contracts up to £100,000. The G-Cloud initiative is going to continue to build barriers for SMEs to enter the market. “Competition in procurement will be encouraged with no like-for like extensions to existing contracts. Programme will be disaggregated for commercial purposes – broken down into components supported by the market to enable many suppliers to bid,” the report added.
UK Defines SMEs businesses with less then 250 employees.