Investment in ICT by public administrations in Spain during the first half of 2020 reached 1,198 million euros, which represents a decrease of 19% compared to the first half of 2019, according to the quarterly barometer of the consultancy Awards ICT. However, during the second quarter of the year, 114 million euros were invested through the framework agreements of the General Directorate for the Rationalization and Centralization of Contracts, 5.7% more than in the same period of 2019, and almost four times more than in the first quarter of this year.
The pandemic and confinement have popularized teleworking, also in the administration. And, for this reason, different agencies have been forced to buy large quantities of personal computers. This has been the main reason for the increase (above 86%) produced in the hardware area during this semester compared to the previous year.
The acquisition of PCs, laptops, and tablets has achieved a growth of 159% in the study period, going from 34 million euros to more than 88 million euros. On the other hand, there has been a significant decline in software investments, above 27%, with the fall focusing on infrastructure software, which fell by 50.7%, which means 70 million euros less in acquisitions in this type of software during the first half of 2020 compared to the corresponding one in 2019.
IBM, Telefonica and Indra are the largest winners
IBM, Telefónica, and Indra are positioned on the podium of the highest winners during the first half of the year, with figures exceeding 80 million euros each of these organizations. Specifically, IBM had a turnover of 106.3 million euros divided into 23 projects; Telefónica, 103.9 million euros from 212 contracts; and Indra, 84.7 million euros in 97 awards. These three companies account for 24.6% of the total invested during the first half of the year by public administrations.
By organizations, the first technology buyer was the CTTI (Center for Telecommunications and Information Technologies of the Generalitat of Catalonia), with 120.86 million euros in 67 projects. Followed by the IT department of the Madrid City Council, with 111.5 million euros in 26 awards. Meanwhile, the Social Security IT Management (GISS), with 77.5 million euros spread over 28 contracts, was placed in the third position in this ranking.
The largest project during the semester was the award of core CPD data processing services by CTTI to T-Systems for an amount of 58.4 million euros and to IBM for 24.6 million euros. The next project by volume was the supply of the IBM mainframe and open systems hardware and software upgrade to cover the needs of the 2020-2023 period, awarded by the GISS to IBM for an amount of 56.9 million euros. And in third place came the services for the transformation of the internal management systems of the Madrid City Council, divided into four lots by Informática of the Madrid City Council for EY (2.6 million euros), Indra (24.1 million euros ), Iecisa-GFI Grupo (10.2 million euros) and IBM (11.7 million euros).
Catalonia and Madrid lead investments
Catalonia once again positions itself as the most investing community, with very little difference over Madrid. These two administrations, together with the General State Administration, bring together a total of 826.22 million euros, which represents 68.94% of the total investment of the public administrations.
“In 2020, the volume of contract awards based on technology framework agreements has increased notably compared to awards for the same period of the previous year, despite the exceptional circumstances arising from the health crisis caused by COVID -19 ”, affirms Rosa Mª Alonso Díaz, general deputy director of Centralized Contracting of Technologies of the Ministry of Finance. “This upward trend continues to occur, even more markedly, in the third quarter of this year.”
“At the moment all the technology framework agreements are in force and some of them have evolved towards models that make it possible to make the demands of the organizations more flexible, expanding the scope and range of products that can be supplied, which is achieved by going to the so-called second tenders, which also promote savings by allowing bids to be adjusted to the specific needs of each tender. This new mechanism has meant that the number of second bids processed has increased by 92% compared to the same period in 2019, and we estimate that this percentage will be higher by the end of 2020 ”, concludes Alonso Díaz.
Carlos Canitrot, consulting director of AdjudicacionesTIC, also takes stock of what the year has been so far for IT in the public sector. “During the first semester, the global figures for total investment in ICT products and services have decreased by 19% compared to the same period last year. But delving into the data, we see some areas in which amounts have been invested well above expectations. That is to say, having reasons to be pessimistic, we also have them to be positive and to see the glass half full: technology is and will be fundamental to overcome this crisis.