The Rapid Evolution of IT and Digital Procurement
Public sector digital transformation isn’t a future vision—it’s already underway. New technologies and digital tools are driving the evolution of IT and digital procurement, enabling organisations to increase efficiency and transform their operations. In 2023 alone, UK public sector spend on digital and data projects reached £26 billion, with even more allocated in the 2025 Spending Review. From AI-enabled platforms to NHS system upgrades and cloud-first migrations, the message is clear: government technology spend is accelerating. For IT suppliers, this means two things: more opportunity, and more competition. Businesses and companies across the public sector are leveraging digital procurement to increase efficiency and stay competitive.
To win in this space, suppliers need more than just a great product. They need to understand the evolving public sector procurement landscape—how digital procurement works, where budgets are flowing, what buyers want, and how to position themselves as the right partner. This article explores key IT and digital procurement trends in 2025 and how you can use these insights to secure your next public sector tech contract.
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What Is IT and Digital Procurement in the Public Sector?
IT and digital procurement refers to how public sector bodies acquire technology products and services—from cloud infrastructure and SaaS platforms to cybersecurity, data systems and agile delivery teams. Information technology procurement involves structured procurement activities designed to ensure compliance and efficiency. The procurement process involves various stages, from supplier selection to contract management, and covers a wide range of goods and services. Historically centred on hardware and large software rollouts, today’s digital procurement is more dynamic, encompassing modular cloud services, scalable platforms, open-source tech, and interoperable systems.
Key frameworks like G-Cloud and Digital Outcomes & Specialists illustrate this evolution. In contrast to manual processes that rely on paperwork and repetitive tasks, e procurement platforms and e procurement systems streamline procurement activities and improve supplier information management. Procurement platforms enable integration with existing systems, ensuring seamless workflows and better supplier performance tracking. Procurement is no longer just about price and function; it’s about agility, user-centred design, cloud-readiness, and security. Public sector buyers now expect suppliers to align with national strategies like Cloud First, and to prove their tech supports scalability, interoperability, and secure data handling.
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The Shift to E-Procurement and Digital Procurement Processes
One of the most fundamental shifts is in how procurement is conducted. The move to digital-first procurement—e-tendering platforms, electronic submissions, and real-time alerts—has streamlined access for suppliers. E procurement processes have replaced manual workflows, enabling better tracking of purchase orders and purchases throughout each process. The 2023 Procurement Act, which came into
force in early 2025, reinforces this by mandating a single central digital platform for all public sector procurement notices.
That means suppliers no longer need to navigate dozens of portals or rely on manual searches. Tender alerts, digital contract management, and dynamic purchasing systems (DPS) are now the norm. These procurement activities provide better visibility and improve efficiency for procurement teams. These tools not only improve transparency but also level the playing field for SMEs and newer market entrants.
Get notified when digital tenders go live – use Tracker’s Opportunity Tracker Tool for instant alerts.
Managing procurement activities through digital platforms leads to greater operational efficiency and cost effectiveness.
Key Trends in IT Procurement Strategy for 2025
The strategic priorities of public sector IT buyers are evolving. Procurement leaders and procurement teams are increasingly focused on adopting best practices and leveraging digital technologies to optimise business processes. Creating and integrating new technologies is a key focus for fostering collaboration and driving innovation in procurement strategy. Here’s what suppliers need to know:
Cloud-First as Default
Public bodies are expected to procure cloud-based solutions as the default. SaaS, IaaS, and PaaS models are preferred over legacy systems. Frameworks like G-Cloud and Technology Services 4 are primary routes to market.
Agile, Competitive, Flexible Procurement
New procedures introduced by the Procurement Act (like the Competitive Flexible Procedure) encourage tailored, faster procurement approaches—ideal for digital innovation.
Interoperability and Open Standards
Government platforms must now be designed to integrate easily across departments. Open APIs and adherence to the Technology Code of Practice are not just preferred—they’re often required.
Cybersecurity as a Non-Negotiable
In 2024 alone, over £1bn was spent on public sector cybersecurity contracts. Certifications like Cyber Essentials are baseline expectations, with added scrutiny for cloud-hosted and data-heavy solutions.
Align your strategy with buyer priorities – explore Tracker’s Procurement Resources for more tips.
Government Software Spending & Tech Market Growth
UK public sector IT spend has been rising steadily—with an 8% CAGR between 2019 and 2024. NHS tech budgets alone are up 69% in four years, now representing nearly a quarter of all public tech spend. Central government still leads, but defence and digital infrastructure are catching up. As spend rises, organisations are seeking to reduce costs and optimise supply chains through digital procurement to improve efficiency and manage overall cost.
Spending Review 2025 reinforced this momentum:
- £10bn for NHS digital transformation by FY28/29
- £3.25bn Transformation Fund for public service modernisation
- £2bn for AI and automation across departments
By analysing spending patterns, medium sized businesses can identify opportunities to manage costs and improve procurement strategies.
In short: tech isn’t an add-on anymore. It’s a central pillar of policy delivery. Suppliers who align their offers to this growing market will find expanding opportunities—especially in software, cloud services, and cybersecurity.
For example, the implementation of a new system in a local authority led to significant cost savings and improved supply chain resilience.
Tap into the fastest-growing procurement category – get insights with Tracker’s Market Reports.
Tech Contract Tendencies: What Buyers Are Looking For
Today’s IT procurement decisions are shaped by more than just price. Buyers are increasingly evaluating supplier relationships and contract terms to ensure compliance and cost effectiveness. Here’s what matters to public sector buyers in 2025:
6.0.5 Sustainability
Sustainability is becoming a key consideration in public sector procurement, with buyers seeking solutions that support environmental goals and community well-being. The growing importance of sustainability means that procurement decisions now often include criteria related to eco-friendly practices and sustainable technologies.
Security & Compliance
Cyber Essentials, ISO 27001, secure data handling—these are now foundational requirements.
Cloud-Readiness & Scalability
Solutions must be able to scale with demand and support a shift away from fixed infrastructure.
Speed & Agile Delivery
Buyers favour suppliers who can deploy quickly, iterate fast, and demonstrate a track record of timely delivery.
User-Centred Design
Accessibility and UX are critical. Digital services must be designed around real user needs and tested accordingly.
Strategic Fit & Outcomes
Tenders are increasingly scored on how well a supplier’s solution aligns with organisational goals—not just functionality.
How to Find & Secure Tech Opportunities with Tracker
Tracker isn’t just a data tool—it’s a competitive edge. For IT suppliers, the platform supports organisations in identifying opportunities, managing procurement activities, and ensuring data security. For IT suppliers, the platform supports:
- Finding and securing new tech opportunities
- Overseeing and managing supplier relationships and procurement processes
- Maintaining compliance and risk mitigation through effective managing of bids and contracts
- Protecting sensitive information with robust data security features
7.0.3 Market Intelligence
Tracker’s market intelligence tools help you stay ahead of the competition by providing real-time insights into market trends and competitor activity. Generative AI is used to analyse spending patterns and provide actionable insights, helping you identify cost-saving opportunities and optimise sourcing strategies.
Real-Time Alerts:
Instant notifications for relevant digital tenders across platforms.
Full Visibility:
Covers national and local tenders, including below-threshold opportunities.
Market Intelligence:
Track where budgets are growing, which buyers are active, and how competitors are performing.
Bid Preparation Tools:
Access historic award data, evaluation criteria, and buyer profiles to sharpen proposals.
Combined, these features help suppliers act earlier, tailor bids more effectively, and increase win rates.
Ready to secure your next tech contract? Book a free Tracker demo today.
Stay Ahead of Public Sector Digital Procurement
Digital transformation isn’t slowing down. From AI to cloud to cybersecurity, public sector IT procurement is entering a new era of speed, scale, and strategy. For IT suppliers, the challenge isn’t just to keep up—it’s to get ahead.
By understanding the trends shaping procurement, aligning offers with government priorities, and using platforms like Tracker to gain early insight, suppliers can confidently navigate the complex world of public sector sales.
Digital transformation isn’t slowing down. [Position your business to win – talk to Tracker today.
