In the UK, the government spends around £284 billion on public sector contracts every year. With so much money in play, it should be unsurprising that government contracting attracts so much interest. Even big names like Amazon, Dell, and Apple hold government contracts in England.
The popularity of government contracting is a testament to how beneficial the process can be for your business. But beyond the financial rewards, what does your business stand to gain from contracting with the government? And how can you stand apart from the competition to win public sector contracts in the first place?
For all the information you need on the advantages of government contracting, just keep reading. You may be surprised at the opportunities available to you in the public sector!
What is Government Contracting?
Government contracting is the purchase of goods and services by the government, usually from the private sector.
In the 1980s, the UK government outsourced significant amounts of work to private businesses. The popularity of public sector contracts has persisted ever since. Both Labour and Conservative governments have supported outsourcing as a way to save public money.
Today, the government buys a wide variety of services from the private sector. From construction to social care services, businesses in every sector can win contracts with the government.
Contracting enables the government to streamline its own services while offering professional and financial rewards to the private sector. Currently, almost one-third of public money is spent on procurement. That flow of money into the private sector will boost the UK’s economy as the country continues to recover from the pandemic.
The Advantages of Public Sector Contracts
Government contracting can unlock amazing opportunities for your business. Here are a few ways in which public sector contracts can support your work in the long term.
As an employer, the government is unprecedentedly reliable. It can’t go bankrupt, and it has an obligation to pay its suppliers on time. For a business, that stability is a great advantage.
A government contract guarantees steady work and steady income. Especially for small businesses, that consistency can make all the difference. Being paid reliably means you can afford to take more risks elsewhere, using your new resources to innovate and expand your offering.
When planning for the long term, the stability that comes with government contracting can give your business a serious edge.
Opportunities to Collaborate
Working with the government means you can apply your business’s industry knowledge to the public sector. It can introduce your business to new partners it might not have encountered elsewhere. That means an amazing opportunity to for collaboration.
For any business, collaboration begets innovation. Developing your ideas alongside new partners will teach your business to do things differently. You can learn more effective habits, refine your practices, and bring genuine creativity to your industry.
And after your contract ends, you can apply what you have learned with other clients in the future. Your collaboration with the public sector may even give you an advantage over other, less agile businesses.
A Boost to Your Reputation
It looks impressive to have a public sector client on your business’s books. It shows your business has excelled in the competitive bidding process. Being able to show that you can not only work hard but also get results will bolster your business’s credibility.
That makes your business a more attractive prospect to potential clients. Over time, a government contract can build interest in your business from elsewhere. This will enable you to diversify your client base even after your government contract ends.
A public sector contract can also appeal to potential employees as your business grows. If you have a reputation for reliability due to your work with the public sector, workers will be more willing to trust you as an employer. Contracting with the government could allow you access to top talent, as well as future work with new clients.
Public Sector Frameworks
Do you want to access the benefits of government contracting without the lengthy bidding process? A public sector framework may be the solution you need.
Public sector frameworks allow buyers to select suppliers and set terms and conditions for a set period of time. The buyer can then call on the supplier to provide services whenever they are needed. Sometimes, the buyer never needs to request services.
While a public sector framework is not a guarantee of work, it does come with advantages. Most importantly, being part of a framework agreement shows that your business is credible. It allows your business to reap the rewards of government trust and build a great reputation in your industry.
It can also enable you to develop a working relationship with a buyer. In the long term, that connection could lead to more steady work for your business.
Unlock Your Business’s Potential
Government contracting can be rewarding in every way – but it can also present real challenges. If your business is hoping to contract with the government, Tracker can help.
We have access to all major UK government procurement departments – so we can provide you with more information than anyone else. We will help you to understand government spending and identify your competitors. We’ll also help you to identify areas for growth, so you can put your best foot forward when bidding.
So why wait? Contact Tracker Intelligence today, and let us help you take your business to the next level.