The public sector is undergoing a digital transformation, and Enterprise Applications (ERP, Finance, HR, Payroll, CRM) are at the forefront of this change. Procure Tools’ latest public sector landscape report unveils valuable insights to empower both private sector suppliers and public sector leaders to navigate this dynamic environment.
A Wave of Renewals is Coming
The report paints a clear picture: a significant number of Enterprise Applications contracts are set to expire in the next 24 months. This translates to a whopping 924 live contracts with a combined annual spend of a staggering £340.4 million up for renewal. This presents a golden opportunity for private sector suppliers to secure new contracts and establish themselves as trusted partners in the public sector’s digital journey.
Local Government Leads the Charge
Not all sectors are created equal when it comes to Enterprise Applications renewals. Public sector organisations within Local Government offer the greatest potential for lucrative contracts. With the most contracts expiring within the next two years, Local Government represents a prime target for suppliers looking to capitalise on this renewal boom.
London: A Lucrative Market Awaits
While the Local Government sector presents a nationwide opportunity, specific regions stand out even further. Greater London boasts the highest number of expiring contracts (144) and the greatest annual spend (£105.3 million). Don’t miss out on this lucrative market! Suppliers who tailor their offerings and marketing strategies to address the specific needs of London’s public sector organisations are well-positioned to secure a significant share of these upcoming contracts.
Strategic Renewal Periods: Plan for Peaks and Valleys
Renewals are not evenly distributed throughout the year. Understanding these trends allows both suppliers and public sector leaders to plan their strategies more effectively. March 2025 emerges as the month with the most contracts expiring (113), presenting a potential peak period for suppliers to focus their sales and marketing efforts. However, from a spending perspective, October 2024 takes the lead with the highest annual spend (£125.2 million) on expiring contracts. By strategically allocating resources throughout the year, suppliers can ensure they are prepared to capitalise on these opportunities.
Beyond Averages: A Month-by-Month Breakdown
While headlines often focus on large numbers, it’s valuable to delve deeper. The report provides a month-by-month breakdown, revealing an average of £14 million worth of Enterprise Applications contracts expiring every month for the next 24 months. This translates to an average of 36.9 contracts reaching their renewal date each month. This consistent flow of renewals underscores the ongoing need for public sector organisations to stay informed and make informed decisions about their Enterprise Applications landscape.
A Look at Rolling ERP Contracts
The report doesn’t just focus on expiring ERP contracts. It also sheds light on ongoing, non-expiring contracts (rolling contracts). This data provides valuable insights for suppliers looking to build long-term partnerships with public sector clients. Here are some key takeaways from the rolling contracts data:
- Top Suppliers: Midland HR emerges as the leader with the most rolling contracts (52) and the highest annual spend (£3.7 million). This suggests that Midland HR has successfully established itself as a trusted provider for ongoing Enterprise Applications solutions within the public sector.
- Brand Powerhouses: When it comes to software brands, iTrent reigns supreme with the most contracts (112 out of 322) nearing the end of their initial term. This indicates a strong market presence for iTrent’s solutions, offering potential partnership opportunities for suppliers with complementary offerings. In terms of annual spend, E-Business takes the lead at £149.2 million, highlighting the dominance of this brand in the ongoing Enterprise Applications space within the public sector.
Actionable Insights for Success
Procure Tools’ landscape report empowers both private sector suppliers and public sector leaders with actionable insights to navigate the upcoming Enterprise Applications renewal boom:
- Private Sector Suppliers:
- Identify Lucrative Opportunities: Leverage the report’s data to target sectors and regions with the most expiring contracts. Focus your sales and marketing efforts on Local Government and Greater London to capitalise on the highest concentration of opportunities.
- Prepare for Peak Renewal Periods: Understanding the peaks and valleys in contract renewals allows you to strategically allocate resources and maximise sales efforts during periods of heightened activity (e.g., March 2025).
- Refine Your Offerings: Insights into top software brands and suppliers can inform your product development
See the Data Behind the Insights
This blog post offers a glimpse into the wealth of information available in Procure Tools’ public sector landscape report. Want to delve deeper? Book a demo with one of our consultants to explore the contract data behind the visuals and statistics. Gain a comprehensive understanding of the Enterprise Applications market and make data-driven decisions for your organisation.
Contact Procure Tools today!