Procurement barriers limit tech industry innovation and contribution to societal benefits
A new report from Almega, released on TechSveriges members' responses, points out what needs to happen for more tech companies to contribute to the development of society. Focus on lowest price, ttime-consuming formalities and too many and irrelevant requirements are listed as some of the main obstacles.
The public sector in Sweden is facing significant challenges. The need for public services is increasing as the population grows and ages, while citizens are demanding higher quality. Digitization has a key role in meeting these challenges.
- To manage the sustainable transition and ensure strong welfare, digitalization must accelerate. Close cooperation between the public and private sectors is crucial to take advantage of the market's solutions," says Frida Faxborn, industrial policy expert at TechSverige.
The results of the survey show that the problems surrounding public procurement continue to exist, despite reforms and regulatory changes. In total, 130 of TechSverige's member companies responded, and the results point to several obstacles to participating in public sector procurement.
Increased dissatisfaction with price focus and cumbersome processes
The survey shows that 70% of companies have participated in public procurement in the last four years. The most common reasons for not participating are time-consuming formalities (57%), irrelevant requirements (35%) and an excessive focus on lowest price (24%). Despite a slight decrease in complaints about irrelevant requirements, dissatisfaction with price focus has increased - 73% avoid price-driven tenders, compared to 66% in 2020.
60% of respondents think that procurement processes are cumbersome, and 58% see no improvement despite new rules from 2022.
- This signals the need for further simplification and better guidance from the public sector," says Frida Faxborn.
Dialogue is appreciated, but too rare
Dialogue between buyers and suppliers is in demand. Only 1% feel that the dialog always works well, and more than half feel that it almost never happens. This prevents both customer and supplier from understanding each other's needs and market conditions.
- The public sector is missing out on major opportunities to benefit from the innovation and delivery capabilities of the tech industry. Especially for smaller companies, the extensive requirements and resource constraints become a barrier," says Frida Faxborn.