Public sector reforms are at the heart of a decline of the UK public sector SITS (software and IT services) according to new market research.

Research carried out by analysts TechMarketView, revealed that the SITS market declined by 2 per cent in 2012, with the market now believed to be worth £644 million less in 2013 than 2010.

The research suggested that the market will struggle to achieve any form of recovery before 2016.

Reforms that have contributed to the decline in the SITS market include the Cabinet Office’s move to encourage SME suppliers as part of a drive to increase ICT savings, as well as the renegotiation of outsourcing contracts.

Georgina O’Toole, director at TechMarketView, said that a new mind-set in required in order to operate in the changing market: “Suppliers need to accept the ‘new normal’ and consider changing their commercial and delivery approaches to suit the new environment.”

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