Barriers to harnessing the innovation and delivery capacity of the tech sector

The public sector in Sweden is facing major challenges. The need for public services is growing as we live longer and become more numerous. At the same time, citizens' demands for quality in public services are increasing, and digitalization is an important part of the solutions.

- Digitization must continue if we are to manage a sustainable transition of society and maintain good welfare. The public sector plays a key role in accelerating this development. A well-functioning interaction between the private and public sectors is therefore crucial, not least so as not to miss out on all that the market can contribute," says Christina Ramm-Ericson, Head of Industrial Policy at IT&Telecomföretagen.

Formalities, price pressure and time are obstacles
Almega's report 'How service companies view public procurement' shows that many service companies currently refrain from participating in public procurement, even though the public sector is a natural customer. Among the members of IT&Telecom, the main reasons are that the formalities for participation are too time-consuming and that there is too much focus on the lowest price. Among respondents, 58% say the process of participating in public procurement is too complicated and almost half (45%) say it has become more complicated in the last three years.

Dialogue must be a priority
When asked if they think that public actors have a good dialog with the market prior to their procurements, only 1% answered that it always happens. 55% answered that it never or almost never happens.

- The responses reinforce the conclusions of the report presented by IT&Telekomföretagen in September 2020 Suppliers of societal benefit. It shows that innovation needs to be prioritized over price, that an increased dialogue between the public sector and suppliers is of the utmost importance and that the right skills are fundamental to successful procurement," says Frida Faxborn, industry policy expert at IT&Telecomföretagen.

- IT&Telekomföretagen wants to help develop the interaction between the public sector and the tech industry, and to develop the entire market in order to support the public sector in its important mission. Our hope is that more companies, with the right conditions, will be interested in and have the opportunity to act in the public market. We also want to see public actors increasingly take advantage of the innovative power and delivery capacity that exists in the tech sector," concludes Frida Faxborn.

IT&Telecom companies' report Suppliers of public benefits
Almega report How service companies view public procurement
The IT&Telecom companies' broken down answers