SMEs dominate list of 200 fastest growing tech companies
Specialised tech suppliers have considerably expanded their gross sales to authorities all through the pandemic, with round eight in 10 of the 200 fastest growing expertise companies within the sector being small and medium-sized enterprises (SME), in response to information from public sector market intelligence platform Tussell.
Published 9 December 2021, Tussell’s inaugural Tech200 list was created in partnership with commerce affiliation TechUK, and charts the suppliers which have seen the most important development in earnings from the general public sector between the 2019-20 and 2020-21 monetary years.
Out of all 200 fastest growing companies, greater than three-quarters had been SMEs (outlined as any firm with fewer than 250 workers and fewer than £50m in turnover), together with 9 of the highest 10.
On common, every agency listed grew by £3.64m, or the equal of 345%, with a mixed whole development of £728m throughout all companies.
While the list of fastest growing suppliers was dominated by SMEs, the full gross sales to the general public sector of the highest 200 (£936m) was nonetheless solely 15.5% of the gross sales made by the 25 greatest tech suppliers (£6.05bn).
By distinction, the positions of the 25 main tech suppliers for each 2020 and 2021 fiscal years had been largely unchanged in phrases of how a lot they earned via public sector contracts. For instance, within the 2020 fiscal yr, Capita earned £865m, however remained on high in 2021 regardless of incomes £773m, or roughly 11% much less.
Similarly, Atos remained in second place, incomes £585m, a rise on the £564m it earned the earlier fiscal yr, whereas Capgemini moved from fourth in 2020, when it earned £422m, to 3rd in 2021, when it earned £445m. Many of the opposite main suppliers earnings remained equally steady.
In phrases of general change among the many high tech suppliers, the typical was a 6% discount in earnings between fiscal years.
“The list is intended to be a purely fact-based, unbiased analysis of the fastest growing tech firms – completely uninfluenced by any sponsors or the interests of individual companies or organisations,” stated Tussell in a blog post.
“We want to use the data to tell the stories of what’s happening in public sector tech, and run the list annually to highlight the most interesting up-and-coming firms.”
It added that whereas the biggest IT companies are nonetheless clearly dominant within the public sector, the tech market stands out from different markets as a result of of its ecosystem: “It’s not merely a case of a dozen main Tier 1 suppliers and their subcontractors, which you might even see extra generally in development or FM markets.
“The list makes it clear that there is a thriving, emerging role for experts, advisers and resellers who help knit together the complex network of technologies and solutions, and as such create a kind of ‘ecosystem’, rather than a traditional hierarchical market that you see in many other industries.”
Breakdown of the list
While solely 5 training expertise companies had been listed within the high 200 – together with ParentPay, School of Code and Egov Solutions – college information administration agency Wonde was the absolute fastest growing tech company within the public sector, with authorities spend rising 3917% from £358,831 to £14,415,227 in only a yr.
IT providers provider Jigsaw Systems was a detailed runner up with a 3676% enhance in authorities spend, and is the one firm within the high 10 which isn’t an SME.
All of the general public sector spending on Wonde in the course of the interval got here from native authorities, reasonably than the Department of Education (DfE), whereas spending on Jigsaw got here from a mixture of councils and central authorities departments; with the Department of Health and Social Care (DHSC) having the very best bill worth by a major margin at £14.5m.
Following Wonde and Jigsaw with the fastest development is digital expertise and innovation supplier Hypertalent Solutions, at 2032%; consultancy TPG Services, at 1998%; techniques integrator Diegesis Limited, at 1332%; and telecoms agency Firetext Communications, at 1211%.
All of the contracts received by Hypertalent, TPG and Diegesis had been awarded by central authorities our bodies, with the Cabinet Office, Ministry of Defence (MoD) and Office for National Statistics (ONS) spending essentially the most on every provider respectively in the course of the previous monetary yr.
In that very same interval, nonetheless, the most important spender with the 200 fastest growing tech companies was the DfE, which spent £270m of the £936m whole. The subsequent highest authorities spenders had been HM Revenues and Customs (£48.3mn) and the Department for Work and Pensions (£44.6m).
Although it isn’t an out-and-out edtech firm, a good portion of the DfEs spend (£266m) went to {hardware} agency Computacenter PLC for the availability of laptops, tablets and routers for deprived youngsters and younger individuals to assist with distant training.
In phrases of subsectors with the fastest development, one in 5 companies are both concerned in consultancy or digital transformation work within the public sector, whereas roughly 17% are offering both software program or cloud options respectively.
Education and well being had been, inevitably, the 2 sectors most affected by the pandemic and the figures present the extent to which they turned to expertise to assist them via the disaster.
On high of the elevated edtech spend, the list additionally highlighted a surge in authorities spending with healthcare expertise companies, of which there are round 30 listed. For instance, whereas the DHSC spent £1.29m with the 200 companies in 2019-20, it spent £23.4m in the latest monetary yr.
Although no healthtech companies reached the highest 10, digital outpatient providers supplier Medefer Limited had the fastest development within the subsector, with a 580% enhance in authorities spend on the previous monetary yr.
Despite fewer than 10 companies on the list being solely targeted on creating synthetic intelligence (AI), together with Faculty Science (503% development) and Databricks UK (408% development), it may be tough to quantify what number of are deploying AI, because the expertise can be utilized throughout a variety of providers and may not be specified on the level the contract is awarded.
