Sector Insights from Hudson Succeed
Attempting to bid for work in the IT sector can seem like a minefield at the best of times. No two tenders are the same and for many SMEs looking to broaden their horizons, this can be daunting, to say the least. Writing tenders may not be your forte, and with this in mind, it can be essential that you approach bidding for work in the IT sector with direction and focus. Below are some sector insights that can help you better approach tendering.
Contract disaggregation:
Although this is worded quite difficulty, it, in essence, means the breaking up of contracts into smaller, more manageable sizes. A recent report carried out has shown that since 2017, the UK government have been seeking to break up larger public sector IT contracts into smaller, more accessible pieces of work. Concerns have been raised by many organisations questioning the value for money that longer, single supplier agreements offer. The benefits that contract disaggregation has are as follows:
- This makes bidding for work in the IT sector much more accessible for smaller SMEs looking to get their foot in the ladder.
- This can provide a strategy in terms of networking for SMEs, since it is possible to now forecast when larger contracts are likely to expire, allowing SMEs to form relationships with buyers to get their foot in the ladder when it comes to bidding for work.
- This also puts less strain on buyers, since lengthier, more expensive single vendor arrangements are likely to reduce, allowing more manageable levels of expenditure.
- This also provides choice, breaking away with the routine of large established suppliers and allowing buyers to seek a more diverse range of suppliers, opening the door for many new SMEs.
The key facts:
As a result of this, larger contracts are now looking to expire before 2021, allowing SMEs a chance to streamline their approach and bid for work strategically in the IT sector. Key figures published in the recent report are as follows:
- There are 42 IT contracts worth over £10m coming to an end between now and the end of 2020. These could be ripe for disaggregation given the UK governments current approach and is definitely something for SMEs looking to establish themselves to keep an eye on.
- Opportunities could be open for all. There is approximately £3bn worth of public sector IT contracts expiring before the end of 2020, meaning companies of all sizes will have a chance to bid for work.
- There are 2,773 IT contracts set to come to an end before 2020, 343 of which have a total value of £1m. It is key that buyers prepare for contracts like these coming to an end, allowing them to get a head start on the competition.
- Reports have shown that UK public sector spends an estimated £242 billion per year on procurement. In recent years, it has been shown that there has been a public drive to award contracts of all sizes to smaller firms, with the UK government setting an ambitious target of 33% of procurement spends going to SMEs by 2022.
Ways you can get a head start on the competition:
Companies looking to bid for work in the IT sector can often be faced with large amounts of other fresh and hungry companies going for the same opportunities as them. In an industry which is so innovative and ever-changing, it is essential that you act responsively and look to the future when approaching tendering. Top ways you can get a head start on your competitors are as follows:
- Do your research. Find out what contracts are coming to an end, research who the incumbent supplier is and research what contracts are relevant to you. This will allow you to approach tendering with as much ammunition as possible.
- Plan ahead. One tip which we would suggest is looking at tender documents for the contracts you are interested in. This will allow you to plan tender responses well in advance and forecast what type of work will be required from you. Whilst the renewal contract may not be identical and the buyer may be asking slightly different questions, having this background knowledge is a good foundation to start with.
- Have your policies and corporate literature in place. You may be an IT company providing software and have only been running for 6 months. Set yourself targets and work towards having your company policies, literature and accreditations in place before certain contracts come to an end. This will allow you to set achievable targets and forecast opportunities for company growth.
How we can help you prepare for contract disaggregation:
We offer bespoke services to companies of all sizes and our team of tender consultants offer expert advice to organisations across multiple sectors. Ways in which we can help you prepare to bid for work in the IT sector are as follows:
- Tender Ready – Our Tender Ready service allows companies who are new to public sector tendering with the best possible chance of succeeding. We organise company literature, case studies and allows you to understand what opportunities are right for you based on your skillset and experience. Let’s say you are an SME who specialise in vehicle tracking software, we will help your company bid for work that is right for you and allow you to hit the ground running with any future IT contracts that come up for renewal.
- Tender VLE – Our Tender VLE service is free and offers organisations looking to understand tendering with digestible and easy to understand videos regarding all things tendering. We understand that not every SME can afford to pay for services, hence it is our aim to make public sector tendering accessible for all. Your product or service that you offer may be the next big thing in the IT sector and having a basic understanding of tendering will allow you to bid for work effectively and showcase your innovation in the best possible light.
- Procure Research – Contract disaggregation is a big thing for SMEs in the IT sector. However, we know that busy IT start-up companies may be focused upon other aspects of establishing their product and may not have time to research buyers. Our Procure Research service can provide IT companies with the all-important information in understanding who is buying and when.
In Conclusion
To conclude, tendering in the IT sector can often be a daunting prospect for any SME. However, building the right kind of foundational knowledge along with sector insights can set your organisation up to succeed in tendering. We offer multiple different services for companies of all different sizes and have in excess of nearly 50 years combined procurement expertise. If you would like to know any further information regarding all things tendering, then get in touch with our Bid Writing Consultants today.
Technology Tenders
Are you currently looking for new opportunities in the tech sector? Hudson is formed of eight strands which work in tandem to drive our client’s businesses forward, one of which is Hudson Discover.
Hudson Discover houses ten sector-specific tendering portals, including Technology Tenders. We offer a free live demo of the platform to give you an idea of the tenders we source, where we find them and how the portal can generate new business for your organisation.
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