Reflecting on 2024

As 2025 gets underway, the lessons from 2024’s public sector procurement trends offer valuable insights for suppliers eager to gain a competitive edge. Suppliers must prepare to adapt to a rapidly evolving landscape with a new Labour government reshaping policy and the incoming Procurement Bill set to streamline processes. You can read more about the Autumn Budget’s impact on suppliers here.

Leveraging insights from Stotles’ analysis, this blog explores:

• Key takeaways from 2024: Over £40 billion in technology procurement activity across cyber, telecoms, and healthtech.
• Sector-specific trends: Analysis of cyber, telecoms, and healthtech verticals' leading buyers, suppliers, and procurement routes.
• 2025 recommendations: Practical tips to help suppliers sharpen their public sector strategy.

This blog is a redacted version of a recently published insights report for suppliers selling into the public sector in 2025 and dives deeper into cyber, telecoms and healthtech. Download the full report here.

Procurement highlights and trends

In 2024, the public sector’s focus on digital transformation, cybersecurity, and infrastructure modernisation created various supplier opportunities.

• We analysed over 12,000 contracts, totalling £40 billion in technology procurement.
• NHS England, the Ministry of Defence, and UK Shared Business Services led the demand for IT, telecoms, and healthtech solutions however, this was a trend we saw across the broader public sector.
• Top-performing suppliers like Softcat PLC, predominantly known as a value-added reseller, and telecommunications giant BT Group dominated the landscape. However, while some suppliers aim for contract volume at a lower value, others generate their revenue from larger contracts at a much smaller volume.

Top procurement routes

Procurement frameworks have become an increasingly important route to market for suppliers. Frameworks like G-Cloud 13 accounted for significant spending, especially in IT services, before G-Cloud 14 came into effect. 

However, open tenders were the dominant procurement route in sectors like cybersecurity and healthtech, emphasising the importance of monitoring diverse channels.

Spotlight on cyber, telecoms, and healthtech

Each of these sectors reflected distinct procurement patterns in 2024. Let’s explore the trends, opportunities, and what they mean for suppliers in 2025.

Cybersecurity

According to the Department for Science, Innovation & Technology, the UK’s cyber security sector continues to demonstrate remarkable resilience and growth, achieving a 13% increase in revenue over the past year and creating 2,700 new jobs. 

This nationwide sector drives regional economic development, with over half of cyber firms based outside London and the South East, reinforcing national resilience and local impact.

According to our procurement data, in 2024, the public sector spent £5.5 billion on cybersecurity across 1,500 contracts, with key buyers including the Ministry of Defence, NHS England, and local authorities like Gateshead Council.

Leading suppliers such as Softcat PLC, Bytes Software Services, and Phoenix Software Limited dominated the market. Notably, only 15% of these contracts were procured through frameworks, highlighting the importance of focusing on open tenders. 

With 314 contracts worth £250m set to expire in 2025, now is the time for suppliers to engage with buyers.

Telecommunications

The UK telecommunications industry is rapidly evolving, driven by key trends shaping 2024 and beyond. The global rollout of 5G enables ultra-fast, low-latency connectivity for innovations like autonomous vehicles and IoT devices, while AI enhances network optimisation, customer service, and cybersecurity. Privacy and security remain critical as digital reliance grows, prompting investments in robust protections. 

Additionally, the rise of hybrid communication solutions caters to the growing demand for seamless remote work and collaboration tools. Together, these advancements position telecoms to meet the needs of a more connected, efficient, and sustainable public sector.

Reviewing Stotles’ data, telecoms saw £8.6 billion across 1,000 contracts, driven by key buyers such as the Department for Culture, Media, and Sport, the Ministry of Defence, and UK Shared Business Services, with a strong focus on 5G and IT infrastructure. 

Market leaders included British Telecommunications, Vodafone, and Virgin Media Business. Similar to cyber, 17% of contracts procured via frameworks, open tenders remain a key avenue for new and established suppliers. Looking ahead, 588 telecom contracts worth £700m expire in 2025.

Healthtech

The UK healthtech sector is pivotal, buoyed by significant government investments and strategic recommendations from recent reports. The 2024 Autumn Budget earmarked £2 billion for NHS digital transformation and £520 million for the life sciences innovative manufacturing fund, underscoring the sector's importance. 

The National Institute for Health and Care Research received increased funding to propel advancements in medtech, digital health, and data. This momentum builds on insights from the UK Office for Life Sciences and the Lord Darzi Independent Report, highlighting the transformative potential of technology and data to modernise healthcare delivery. These developments position the UK Healthtech sector to unlock new procurement opportunities while addressing longstanding challenges in research, manufacturing, and commercialisation.

Looking at Stotles’ data, the public sector spent £3.8 billion on healthtech across 1,198 contracts, with NHS England and the Department of Health and Social Care leading investments in digital health platforms and patient record systems. 

Top suppliers to healthtech included Softcat, Insight Direct, and CDW, with 77% of contracts procured outside frameworks. Looking ahead, over 1,000 contracts worth £900m expire in 2025.

This blog is a redacted version of a recently published insights report for suppliers selling into the public sector in 2025 and dives deeper into cyber, telecoms and healthtech. Download the full report here.

Recommendations for suppliers in 2025

Suppliers should take a proactive and strategic approach to succeed in the competitive public sector procurement landscape. Here are four actionable insights to level up your 2025 sales strategy.

1. Start by engaging early with buyers—over 1,300 expiring contracts across cyber, telecoms, and healthtech offer a clear opportunity to connect with decision-makers ahead of procurement cycles. 
2. We recommend focusing on high-value buyers like the Ministry of Defence, NHS England, and the Department for Digital, Culture, Media & Sport (DCMS) to align with consistent demand and maximise opportunities.
3. While frameworks like G-Cloud remain key, monitor open tenders to ensure access to a broader range of opportunities. 
4. Finally, build long-term relationships by positioning your offerings as strategic, value-driven solutions that align with buyers’ goals.

Stay ahead using data-driven insights to sharpen your approach and position your business for long-term success.

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