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The UK Government’s Strategic Suppliers: What tech firms need to know
From paper clips to military hardware, contracting authorities spend hundreds of billions of pounds every year with private sector suppliers to deliver vital public services and implement policy.
A small handful of companies sit at the heart of this market - the UK Government’s ‘Strategic Suppliers’.
Tussell’s 8th annual Strategic Suppliers Report lifts the lid on £24.8 billion in public procurement spend with the government’s most important suppliers.
For technology companies looking to grow their public sector book of business, the report provides vital market context - from shifting spending patterns to emerging opportunities.
This blog unpacks five key insights from the report every tech firm should know.
A quick recap: who are the 39 Strategic Suppliers?
The UK Government’s Strategic Suppliers are a select group of companies designated by the Cabinet Office due to the critical goods and services they provide. Each has a dedicated Crown Representative, giving them a direct channel into government.
They include a diverse range of companies, including 13 that we’ve tagged under the ‘Technology’ sector: Accenture, Atos, AWS, Capita, Capgemini, Computacenter, CGI, DXC, IBM, Sopra Steria, Microsoft, Fujitsu and Oracle.
Strategic Suppliers typically generate over £100 million in annual public sector revenue, and their membership is regularly reviewed by the Cabinet Office.
Drawing on open data aggregate, cleansed and enhanced by Tussell, our annual report analyses exactly how much the UK public sector is spending with this small cohort of critical suppliers.
Here are the key findings from our latest report that all tech suppliers to government should know:
1. Strategic Suppliers are losing ground
The 39 Strategic Suppliers saw their collective share of direct UK public procurement spending fall to a five-year low of 10% in FY 2024/25, despite the overall market growing 2% year-on-year.
Technology Strategic Suppliers were no exception: their combined revenue fell by 2% over the past year, signalling the government’s push to diversify suppliers and break up large contracts. For telecoms Strategic Suppliers, revenue slumped by 12%, with the most successful telecoms suppliers expanding into the adjacent IT market to recapture growth.
2. The tech sector dominates central government - but not local authorities
Technology firms account for 43% of Central Government Strategic Supplier spend, yet only 9% of Local Government’s. Other regional bodies invest far more - the NHS directs 31% of its Strategic Supplier spend to tech, and Blue Light organisations allocate 40%.
Previous Tussell research has shown Local Government to be the slowest-growing technology vertical in the public sector. With councils under severe financial strain, the question remains: does Local Government's lack of technology spending risk long-term efficiency and security in favour of short-term cost-saving?
3. Frameworks are the gatekeepers in public sector tech
In FY24/25, over half (56%) of all Strategic Supplier contracts were awarded via framework agreements or Dynamic Purchasing Systems (DPS) - nearly three times the SME average.
For technology providers, mastering frameworks is no longer optional. Success depends on selecting the right ones, partnering strategically, and understanding which frameworks your target accounts are actually using. Firms that lack a data-based framework strategy risk being shut out before competitions even begin.
4. AI procurement is accelerating - but Strategic Suppliers aren’t leading it
AI-related contracts among Strategic Suppliers have risen steadily to 26 awards in FY24/25, led by Capgemini, IBM, KBR, Deloitte and EY. Yet, they represent less than 1% of all public-sector AI deals.
Tussell's Strategic Suppliers Report paints a picture of a fragmented AI ecosystem - one where specialist firms still have space to lead. For innovative tech suppliers, especially SMEs with niche capabilities in machine learning, data science, or automation, the government’s AI adoption drive represents a major growth opportunity.
5. £12.8 billion in Strategic Supplier contracts will expire in 2026
Tussell identifies £41.7 billion in live Strategic Supplier contracts due to expire this Parliament, including £12.8 billion in 2026 alone. These expiries create a major opening for challengers to anticipate renewals, form alliances and engage early.
The report also surfaces new signals of future buying intent across tech and telecoms - mined from government pipelines, board minutes and policy papers - helping suppliers to get ahead of the curve.
The bottom line
The 2025 report paints a market in transition: some legacy incumbents are losing share, frameworks are consolidating access, and AI-driven transformation is reshaping demand.
For technology firms, the lesson is clear: a data-driven approach to public sector sales wins. Focus on the right frameworks, track contract expiries, and act early in emerging or growing markets like AI and NHS transformation.
To access all of our findings, download Tussell's 8th UK Strategic Suppliers Report for free here.
techUK - Transforming Public Services
techUK members are transforming public services in the UK. Our community help to shape a smarter, digitally empowered public sector.
techUK drives public sector digital transformation by uniting the public sector and tech industry. Through early market engagement, efficient procurement, and innovative technology adoption, we help to modernise legacy IT, and enable efficient, secure, and personalised services.
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Contact the team
Georgina Maratheftis
Georgina Maratheftis
Georgina is techUK’s Associate Director for Local Public Services
Georgina works with suppliers that are active or looking to break into the market as well as with local public services to create the conditions for meaningful transformation. techUK regularly bring together local public services and supplier community to horizon scan and explore how the technologies of today and tomorrow can help solve some of the most pressing problems our communities face and improve outcomes for our people and places.
Prior to techUK, Georgina worked for a public policy events company where she managed the policy briefing division and was responsible for generating new ideas for events that would add value to the public sector. Georgina worked across a number of portfolios from education, criminal justice, and health but had a particular interest in public sector transformation and technology. Georgina also led on developing relationships across central and local government.
If you’d like to learn more about techUK, or want to get involved, get in touch.
- Email:
- [email protected]
- Phone:
- 020 7331 2029
- Twitter:
- @GeorginaMarath
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- www.techuk.org/
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- https://www.linkedin.com/in/georgina-maratheftis-0a002a102/
Heather Cover-Kus
Heather Cover-Kus
Heather is Associate Director, Central Government and Education at techUK, working to represent the tech supplier community to Central Government.
She started as Head of Central Government at techUK in April 2022 and was promoted to Associate Director in August 2025 supporting both the Central Government and Education programmes.
Prior to joining techUK in April 2022, Heather worked in the Economic Policy and Small States Section at the Commonwealth Secretariat. She led the organisation’s FinTech programme and worked to create an enabling environment for developing countries to take advantage of the socio-economic benefits of FinTech.
Before moving to the UK, Heather worked at the Office of the Prime Minister of The Bahamas and the Central Bank of The Bahamas.
Heather holds a Graduate Diploma in Law from BPP, a Masters in Public Administration (MPA) from LSE, and a BA in Economics and Sociology from Macalester College.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/heather-cover-kus-ba636538
Fred Sugden
Fred Sugden
Fred is responsible for techUK's activities across the Defence and National Security sectors, working to provide members with access to key stakeholders across the Defence and National Security community. Before taking on the role of Associate Director for Defence and National Security, Fred joined techUK in 2018, working as the Programme Head for Defence at techUK, leading the organisation's engagement with the Ministry of Defence. Before joining techUK, he worked at ADS, the national trade association representing Aerospace, Defence, Security & Space companies in the UK.
Fred is responsible for techUK’s market engagement and policy development activities across the Defence and National Security sectors, working closely with various organisations within the Ministry of Defence, and across the wider National Security and Intelligence community. Fred works closely with many techUK member companies that have an interest in these sectors, and is responsible for the activities of techUK's senior Defence & Security Board. Working closely with techUK's Programme Head for Cyber Security, Fred oversees a broad range of activities for techUK members.
Outside of work, Fred's interests include football (a Watford FC fan) and skiing.
- Email:
- [email protected]
- Phone:
- 07985 234 170
Austin Earl
Austin Earl
Austin leads techUK’s Education and EdTech programme, shaping strategies that support the digital transformation of schools, colleges, and universities. His work focuses on strengthening the UK’s education technology ecosystem, enhancing core technology foundations, and advancing the adoption of emerging technologies to improve educational outcomes.
Austin also chairs the EdTech Advisory Panel for AI in Education, contributing to national discussions on the future of EdTech, AI, and the UK's Education system.
- Email:
- [email protected]
- Phone:
- 020 7331 2000
Robert Walker
Robert Walker
Robert joined techUK in October 2022, where he is now Programme Manager for Health and Social Care.
Robert previously worked at the Pension Protection Fund, within the policy and public affairs team. Prior to this, he worked at the Scottish Parliament, advising politicians and industry stakeholders on a wide range of issues, including rural crime and health policies.
Robert has a degree in Politics and International Relations (MA Hons) from the University of Aberdeen, with a particular focus on strategic studies and energy security. Outside of work he enjoys activities such as running, rugby, boxing and cooking!
- Email:
- [email protected]
Cinzia Miatto
Cinzia Miatto
Cinzia joined techUK in August 2023 as the Justice and Emergency Services (JES) Programme Manager.
The JES programme represents suppliers, championing their interests in the blue light and criminal justice markets, whether they are established entities or newcomers seeking to establish their presence.
Prior to joining techUK, Cinzia worked in the third and public sectors, managing projects related to international trade and social inclusion.
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- [email protected]
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Authors
Ben Pollard
