https://mhclgdigital.blog.gov.uk/2025/09/18/building-understanding-of-software-markets-in-local-government/

Building understanding of software markets in local government

Posted by: , Posted on: - Categories: Local Digital
Two Local Digital team members on screen discussing a new tool to support local government with software market intelligence

Over the past six months, we’ve been developing our understanding of local government software markets. This work aims to address the concerns raised by councils through our programme’s evaluation and highlighted in the Future Councils pilot report

Common issues include:  

  • poor interoperability between systems   
  • lack of transparency in pricing   
  • limited competition and choice   
  • difficulties with migration and implementation  

We’ve also identified through roundtable discussions and feedback from partners that managing effective procurements and successfully exiting technology contracts is a challenge, particularly where internal capacity or capability is limited. 

With local government reorganisation, new unitary authorities will need to consolidate systems, migrate data, and harmonise business processes at an unprecedented scale. This will also impact technology contracts and procurement activities. 

Our approach to supporting better procurement decisions

To help councils operate as intelligent buyers and support suppliers to meet sector ambitions, we are developing a software market intelligence tool.  

As a starting point, the Local Digital team have analysed publicly available contract data for six key service areas. This has helped us assess: 

  • market health 
  • competition levels 
  • pricing trends 
  • contract durations 

We’ve turned this analysis into an interactive dashboard. Our ambition is to evolve this into a tool that the sector can use to improve transparency and make more informed procurement decisions.  

You can preview the first iteration of the dashboard: 

Access our guidance note on the software market intelligence tool.

 Get involved

Councils are invited to help shape the software market intelligence tool through short virtual research session. This involves: 

  • taking part in a 1-hour session to discuss your needs and test the tool’s features 

Once you have submitted the form, a researcher will contact you (if places are still available) to schedule your session. We will close the form once capacity is reached. We may add additional sessions in the future. 

Follow our channels for the latest updates and opportunities:  

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2 comments

  1. Comment by Jamie Dixon posted on

    This work will be a big help for local authorities. It doesn't like like you have included generic web CRMs such as Granicus, Netcall and Goss, which are heavily used across local goverment. Will you be looking at this market in the future?

    Reply
  2. Comment by The Local Digital team posted on

    Thank you for your feedback, Jamie. You make an excellent point about generic web CRMs like Granicus, Netcall and Goss.

    As mentioned in the blog, this work is just a starting point and we plan to expand the markets we analyse based on user feedback. Your suggestion helps us prioritise which areas would be most useful to the local government community.

    Even if you don't have capacity to participate in the upcoming user research round, we'd still be very keen to hear from you about other market areas that would be priorities for your work. Please do get in touch if you have further suggestions.

    Reply

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