Competition and Complexity: An Overview of the Local Government Applications Market

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Product Synopsis

This report aims to help suppliers address a complicated market by:

-Highlighting which of the many market segments represent the best opportunities.
-Identifying important procurement trends from recent tenders by local authorities.
-Explaining who the leading suppliers are overall and in each market segment.
-Assessing the capabilities of the leading suppliers overall based on coverage and ability to respond to procurement trends.

Introduction and Landscape

Applications used by local authorities perform a diverse range of functions, and each one is often highly specialised, with over 1,700 suppliers to this market. With councils looking to improve service delivery and make cost-savings, the range of applications from different suppliers presents a significant challenge. Nevertheless, a small group of leading suppliers control a large part of the market - including both corporate systems and those used by front-line services. But the market is changing, and suppliers, large and small, will need to respond to important procurement trends to find new opportunities.

Key Features and Benefits

Kable covers the use of ICT in the public sector across England, Scotland, Wales and Northern Ireland.

Key Market Issues

-Gain insight into the UK local government applications market.
-Gain insight into the best opportunities.
-Gain insight into important procurement trends.
-Gain insight into who the leading suppliers are.

Key Highlights

-Spend on applications and related services by councils totalled £848.8m in 2012/13. Local authorities operate and manage a vast range of software applications, some of which are corporate but many are specific to individual service directorates. The market is extremely diversified and specialised, with more than 1,700 suppliers as well as in-house developers, and this limits integration.
-However, just six suppliers control over half (51.27%) of the market: Microsoft - the established supplier of essential productivity applications to enterprise; leading managed service providers, Northgate, Capita and Civica - all of whom have a large footprint in a number of key markets; and unified enterprise resource planning (ERP) providers SAP and Oracle - with strong coverage of back office systems. Given their wider coverage, established infrastructure and the ability to deliver managed services, these suppliers will be harder to displace. Such is the importance of applications that they represent attractive partners for non-software suppliers looking to increase penetration of the local government ICT market.

1 Executive summary
2 Local government applications series
3 Local government applications landscape
3.1 Suppliers' market segment opportunities: a comparative analysis
4 Key trends in local government applications
4.1 Rationalisation
4.2 Software as a Service
4.3 Outsourcing
4.4 Shared services
5 Leading suppliers in local government applications
5.1 Top 20 suppliers
5.2 Market-by-market: top supplier groups' share
5.3 Market-by-market: top suppliers spend and strengths
5.3.1 Finance and management
5.3.2 Information and engagement
5.3.3 Corporate backbone
5.3.4 Services to citizens Cultural and related services Environmental and regulatory Highways and transport Housing Planning and development Revenue and benefits Social care
6 Supplier analysis
6.1 Supplier positioning
6.2 Supplier profiles
6.2.1 Capita
6.2.2 Civica
6.2.3 Idox
6.2.4 KANA Software
6.2.5 Microsoft
6.2.6 Northgate
6.2.7 OLM Systems
6.2.8 Oracle
6.2.9 Pitney Bowes
6.2.10 SAP
7 Methodology

List of Figures

Figure 1: Local government applications spend (millions) by market segment
Figure 2: Market segment opportunities - a comparative analysis
Figure 3: Examples of application rationalisation
Figure 4: Examples of SaaS
Figure 5: Local government spend forecast - non-outsourced software and related services vs. software-related IT outsourcing
Figure 6: Top 10 outsourcing suppliers in local government market
Figure 7: Examples of shared services
Figure 8: Local government applications - top 20 suppliers by spend (millions)
Figure 9: Local government applications - selected leading vendors by market segment position
Figure 10: Top supplier groups - market-by-market
Figure 11: Finance and management - top suppliers
Figure 12: Information and engagement - top suppliers
Figure 13: Corporate backbone - top suppliers
Figure 14: Cultural and related services - top suppliers
Figure 15: Environmental and regulatory - top suppliers
Figure 16: Highways and transport - top suppliers
Figure 17: Housing - top suppliers
Figure 18: Planning and development - top suppliers
Figure 19: Revenue and benefits - top suppliers
Figure 20: Social care - top suppliers
Figure 21: Local government applications - supplier spend-coverage matrix
Figure 22: Local government software landscape - scope

Companies Mentioned

Microsoft, Northgate, Capita, Civica, SAP, Oracle, Idox, Pitney Bowes, OLM Systems, KANA Software, BT, Serco, IBM, Mouchel, Agilisys, Steria, Capgemini,Vertex, Symantec, Unit 4 Business Software, Imperial Civil enforcement solutions, Corelogic, Liquidlogic, Orchard Information Systems, Xpress, Careworks, McAfee, JCAD, Covalent Software, InPhase, Lexis Nexis, Advanced Business Solutions, Macfarlane, OpenText, Sophos, Tiger Communications, BTS, Datatrack, Mitel, Siemens, VMware, Datatrack, lorensbergs, Axiell, Insight Media, lorensbergs, Axiell, Gladstone MRM,, Clarity Retail Systems, SirsiDynix, XN Leisure Systems, Innogistic, ESRI, PBS, Autodesk, Experian, EXOR, PandL, ICES, Xerox, Symology, Trapeze Group, Bentley, Vix, WDM, Abritas, PIMSS, Aareon, Locata, Consilium, Datawright, Swift LG, Ocella Software Systems, MIS Local Government Systems, Resolution Data Management, Visionware, Open Objects, INTEC PUBLIC SECTOR, Novell, Oxford Computer Consultants, CAPS Solutions, CTSpace, McLaren Software, Plantech, Strand Electoral Management Services, Lalpac, Accenture, ATOS Origin, Deloitte, Fujitsu Services, FatWire Software, RightNow Technologies

Read the full report:

Competition and Complexity: An Overview of the Local Government Applications Market

For more information:
Sarah Smith
Research Advisor at
Tel: +44 208 816 85 48

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Sarah Smith
Research Advisor at
+44 208 816 85 48
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