MARKET REPORT

Insights to jumpstart your 2025 Public Sector strategy

A deep dive into Cyber, Telecoms, and Healthtech Procurement.

10.01.2025
10 min
Section One

Introduction

As 2025 begins, it's an opportune moment to reflect on the procurement trends that shaped the public sector in 2024 and how they can inform you for success in the new year. With a new Labour government steering policy and the incoming procurement act, suppliers must be ready to navigate a dynamic public sector procurement landscape.

By leveraging Stotles' data, we'll explore:

  • Overview of 2024: £40bn in technology procurement, highlighting top suppliers, active buyers, and key routes to market across public sector opportunities.
  • Verticals in focus: A detailed look at the procurement of Cyber, Telecom and Healthtech services, drawings insights from the top buyers, key suppliers, preferred routes to market and upcoming contract expiries to build pipeline from.
  • Recommendations going into 2025: Learn how best to leverage these insights and maximise your public sector sales in the new year.

Whether you’re an SME looking to break into public sector markets or an enterprise supplier seeking to expand, the insights in this report will sharpen your public sector sales strategy and help you build a robust pipeline for 2025.

Throughout this report, click on the supplier names, government authorities and contracts to access exclusive insights from Stotles.

Section Two

Overview of 2024

In 2024, public sector procurement in the UK&I was shaped by major policy changes, a drive for digitalisation, and the need to address ongoing economic pressures. Suppliers who responded to these priorities and aligned with evolving government needs positioned themselves to secure significant opportunities.

12000 +

Contracts analysed in 2024

£40bn

Worth of contracts analysed in 2024

2024 Procurement insights

By filtering Stotles contract data by CPV codes relating to IT Services, Telecommunication and Software Packages & Information Systems (72’, 32’, and 48’), we discovered that government authorities procured 12,954 contracts valued at more than £40bn in 2024. Diving into this data, we reviewed the biggest winners of this spending, the most active buyers, and the most commonly used routes to market in 2024.

Top tech suppliers in 2024

The graph below outlines the most prolific suppliers in public sector technology procurement in 2024, showcasing the organisations that secured most of the £40bn spent across technology CPV codes. Understanding the dominant players is critical for suppliers seeking to enter or expand in this competitive market.

By benchmarking your organisation against leading suppliers such as Softcat PLC, you can identify gaps in your offering, target competitor's expiring contracts and explore opportunities for partnerships with market incumbents.

Most active types of technology spenders in 2024

This section explores the key public sector buyer verticals buying technology services in 2024 broken out by volume of awarded contracts. The data offers a vital insight into where demand is concentrated, spanning central government departments, local councils, and NHS trusts.

Understanding these buyers’ procurement behaviours and priorities allows suppliers to tailor their approach by tracking the most active buyers of their services to pre-engage with upcoming opportunities, foster relationships with high-value clients and position themselves as the trusted partner for future opportunities.

Commonly used Technology routes to market in 2024

Suppliers can better align their strategies to buyers’ preferred procurement channels by focusing efforts on the routes to market that are proven to have the most relevant real historic spend and procurement activity. This way, it’s clear which is likely to be the most productive route to market where you should be focusing your engagement efforts.

Frameworks such as G-Cloud, which accounted for more than 1,400 technology contracts in 2024, remain important entry points for suppliers targeting high-value public sector opportunities.

G-Cloud’s dominance reflects its importance as the go-to route for buyers seeking cloud-based solutions and IT services, making being listed essential for suppliers aiming to engage with key public sector buyers.

Stotles Tip

Top suppliers use Stotles to access detailed insights on active frameworks, call-off contracts, and upcoming expiries to identify the best opportunities for your business.

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Section three

Verticals in focus

In 2024, telecoms, cybersecurity, and healthtech emerged as key spend areas in public sector procurement. Investments in telecoms focused on expanding connectivity and implementing 5G, while cybersecurity procurement addressed the growing need for robust protection of critical systems. In healthtech, public authorities prioritised digital solutions to modernise services and improve patient outcomes.

This chapter provides a detailed analysis of each vertical, uncovering the key buyers, leading suppliers, the frameworks shaping these sectors and upcoming opportunities for suppliers to build pipeline from in 2025.

Telecoms

In 2024, the UK&I public sector telecoms market was driven by major investments in infrastructure, defence, and scientific facilities, with notable overlaps in IT and consulting services. Read ahead as we breakdown data on over 1,000 contracts, worth a total of £8.6bn that were awarded in 2024.

Top telecoms buyers in 2024

For telecoms suppliers, understanding which organisations are driving the highest volume of contracts is critical for targeting efforts and building public sector pipeline. Identifying these top buyers enables suppliers to focus on the authorities with consistent procurement needs, increasing the likelihood of securing long-term opportunities and partnerships.

The UK Shared Business Services, Department for Culture, Media, and Sport, and the Ministry of Defence emerge as the most active buyers in public sector telecoms procurement, consistently driving demand across IT infrastructure, connectivity, and related services.

With Stotles, we can dive into exactly who these buyers are doing business with, helping suppliers uncover the key players dominating the market.

Top Telecoms suppliers in 2024

As shown by the graph below, British Telecommunications leads public sector telecoms procurement in 2024, followed by Vodafone, Virgin Media Business, and Softcat. These suppliers lead the way by leveraging strong relationships and delivering solutions in IT infrastructure, network services, and consulting.

With Stotles, suppliers can identify their key buyers, track procurement patterns, and uncover contract opportunities to compete effectively. Access decision-maker contacts, expiring contracts, and framework insights to focus on high-value targets and build a winning telecoms pipeline faster.

Telecom routes to market in 2024

With just under 17% of telecoms contracts in 2024 being procured via framework, the data indicates that these are not significant barriers to entry for suppliers in this market. However, suppliers seeking to have whole access to the market, should consider their position on following frameworks.

By using Stotles, suppliers can track framework trends, monitor upcoming expiries, and identify relevant opportunities. This enables suppliers to strategically position themselves on the most frequently used frameworks, ensuring greater access to high-value telecoms contracts.

Upcoming Telecom expiring contracts

Upcoming contract expiries represent a critical opportunity for suppliers to engage with buyers ahead of procurement as they are likely to come out with renewal contracts to replace the existing ones. Using Stotles, we’ve identified 588 Telecom contracts worth more than £700m that are expiring in 2025.

Here are three upcoming expiries to help you get started with building pipeline in the new year:

Stotles Tip

Upcoming expiries signal that renewal contracts are likely to come to market. Best-in-class suppliers use Stotles to track these opportunities, engage buyers early, and position themselves ahead of the competition.

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Healthtech

The UK&I public sector healthtech market in 2024 was driven by significant investments in modernising NHS infrastructure, enhancing patient care, and improving operational efficiency. Supporting this focus, the Autumn Budget allocated additional funding to accelerate NHS digital transformation, while the UK Office for Life Science Research announced new initiatives to drive advancements in medical technology.

We've identified 1,198 Technology contracts that the Healthcare sector has procured in 2024. Looking at more than £3.8b in spend data, we've uncovered trends behind this procurement and how to capitalise on upcoming opportunities.

Top Healthtech buyers in 2024

The graph below highlights the most active buyers in healthtech procurement. Understanding which organisations are leading investments allows suppliers to target their efforts strategically, building relationships with key target buyers and aligning their offerings with specific procurement needs.

Unsurprisingly, NHS England emerges as the largest buyer, with over 150 awards issued, reflecting its central role in driving national healthtech initiatives. Other prominent buyers include NHS Midlands and Lancashire CSU, NHS Wales Shared Services and the Department of Health and Social Care, all of which are investing in areas such as electronic patient records and digital health platforms.

Stotles Tip

Stotles users are able to track buyers who are active purchasers of your services and receive alerts when they bring new opportunities to market. Stay ahead by engaging with the right buyers at the right time.

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Top Healthtech suppliers in 2024

The graph below highlights the top suppliers in public sector healthtech procurement in 2024. These suppliers secured the highest number of awards, demonstrating their dominance in the market.

Softcat PLC led healthtech procurement in 2024, followed by Insight Direct and CDW. Click the supplier name to go through to see what contracts they’ve been awarded. These suppliers excelled by delivering tailored digital solutions to NHS and public sector buyers.

Healthtech routes to market in 2024

With just 23% of healthtech contracts procured via frameworks in 2024, they remain a useful, but not dominant, route to market for suppliers.

While most opportunities were awarded through open tenders, these frameworks provide a streamlined option for suppliers to access specific buyers and recurring opportunities.

Upcoming Healthtech expiring contracts

With 1,059 contracts worth over £900m set to expire, there is a significant opportunity for suppliers to build their healthtech pipeline. Now that you’ve identified the top buyers, mapped your competitors, and qualified your eligibility, it’s time to take the next step: engaging with buyers ahead of procurement.

Click the contract most relevant to your business for more information:

Engaging early with buyers that are signalling plans to renew exisiting contracts like these, allows you to establish relationships, understand their priorities, and align your offering with their needs.

Cyber

The UK&I public sector cybersecurity market in 2024 saw sustained growth, underpinned by rising cyber threats and the government’s commitment to protecting critical infrastructure. According to the Cyber Security Sectoral Analysis 2024, the sector generated £11bn in revenue, with public sector demand driving much of this activity.

In 2024, more than 1,500 contracts worth £5.5b were published and tagged with providing Cybersecurity services by the UK&I government. The following section explores the trends behind this procurement, so you're informed to have a winning public sector sales strategy in 2025.

Top Cyber buyers in 2024

The chart below highlights the most active buyers in cybersecurity procurement in 2024. Leading the pack, the Ministry of Defence issued the highest number of awards, reflecting its prioritisation of robust cyber defences for national security.

Other key buyers include UK Shared Business Services and Gateshead Council, showcasing the broad scope of cybersecurity procurement spanning central government and local authorities. Buyers such as the Department for Environment, Food & Rural Affairs (DEFRA), and NHS England further demonstrate the public sector's focus on protecting critical infrastructure and sensitive data.

This data highlights the diverse landscape of cybersecurity investment, offering suppliers the opportunity to target a wide range of buyers with tailored solutions.

Top Cyber suppliers in 2024

Softcat PLC emerged as the leading supplier in public sector cybersecurity in 2024, securing more awards than any other supplier. Its ability to deliver scalable and reliable solutions has positioned it as a trusted partner for government organisations seeking robust cyber defences.

Other notable suppliers include Bytes Software Services and Phoenix Software Limited, who consistently won contracts for tools like threat detection systems and network security solutions. Further down the list, CDW, Insight Direct, and Boxxe demonstrated strong market presence by supporting public sector buyers with advanced cybersecurity offerings tailored to their specific needs.

Stotles Tip

Top suppliers use Stotles to uncover who their competitors are working with, which contracts they’re winning and where they can infiltrate opportunities.

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Cyber Routes to market in 2024

Only 15% of cybersecurity contracts were procured via frameworks in 2024, highlighting that open tenders remain the dominant route to market.

While frameworks provide a streamlined path for suppliers to secure recurring opportunities, the data shows that the majority of cybersecurity procurement takes place outside these channels, emphasising the importance of monitoring open tenders.

Now that you’ve identified the top buyers, mapped your competitors, and assessed your eligibility, the next step is proactive engagement to position your solutions ahead of procurement.

Upcoming Cyber expiring contracts

We’ve identified 314 cybersecurity contracts worth over £250m set to expire in the next year, presenting a significant opportunity for suppliers to engage with buyers and build their pipeline for 2025.

Click on the contracts most relevant to your business to explore further:

Engaging early allows suppliers to build relationships, understand buyer priorities, and tailor their offerings to secure a competitive edge. Early interaction ensures you can align your solutions with buyer needs well before contracts are re-tendered.

Section four

Recommendations going into 2025

The public sector procurement landscape is set to remain competitive in 2025, with government priorities focused on innovation, efficiency, and resilience.

Engage Early with Buyers

With over 1,300 upcoming expiring contracts identified across telecoms, cybersecurity, and healthtech, early engagement is key. Use Stotles to identify decision-makers, assess incumbent suppliers, and tailor your approach to buyer priorities before opportunities are re-tendered.

Target High-Value Buyers

Focus on public sector organisations driving the highest volume of contracts in your sector. Use insights from this report to prioritise buyers, ensuring your strategy aligns with their procurement behaviours.

Leverage Frameworks and Open Tenders

While frameworks like G-Cloud 13 and Technology Products & Associated Services 2 remain useful routes to market, most contracts in these sectors are procured through open tenders. Monitor upcoming opportunities and adapt your approach to align with the buyer’s preferred procurement route.

Differentiate Through Data-Driven Outreach

Tailor your messaging by leveraging insights from past spending patterns, buyer behaviours, and upcoming needs. Stotles’ platform enables you to craft targeted outreach that resonates with buyers and positions your solutions as the best fit for their requirements.

Build Long-Term Relationships

Go beyond transactional bidding by engaging buyers in solution-oriented discussions. Demonstrate how your offerings address their strategic goals, ensuring consistent, value-driven communication to remain top-of-mind.

Stotles Tip

To replicate this analysis for any part of the public sector, Stotles provides the tools to uncover top buyers, key suppliers, and upcoming opportunities tailored to your industry.

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