The British government has spent £1.2 billion with small and medium businesses on cloud and digital services since 2012, figures from the Cabinet Office and Government Digital Service have shown.
Overall public sector spend on storage and IT support was £2.6 billion over the same period, meaning that a total of £1.39 out of of every £3 was spent with SMEs.
These figures include spending by the government, the NHS and local authorities through the government's Digital Marketplace service. Public sector organisations can use the Marketplace to find people and technology for digital products, with a more transparent structure for procurement and pricing; Derby City Council, for example, says that it saved 'thousands' of pounds by switching from a large multinational supplier to a Stafford-based SMB.
Government minister Caroline Nokes said, "Small businesses have an important role to play in helping government to spend taxpayers' money wisely. That is why we continue to find ways of improving how the public sector - schools and hospitals, for example - puts money back into services for those they look after.
"The money saved in Derby is a good example of how smart procurement can make a real difference to people's lives."
The government has said that is is 'committed' to continuing to build its links the SMBs in the UK.
"We are continually focused on breaking down the barriers to entry for SMEs to do business with government, for example, by simplifying the application process," said Warren Smith, director of the Digital Marketplace.
"We are also breaking down the traditionally large contracts into smaller ones, which favour a more diverse range of suppliers and help government to buy services more efficiently."
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