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Made Tech and digital transformation – third time’s a charm?

Recent Aim IPO Made Tech is operating in a potentially booming market, but a lack of visibility on its previous performance makes forming a valuation conclusion difficult, says former analyst Robin Hardy
Made Tech and digital transformation – third time’s a charm?

Brave new worlds

The UK government’s drive to modernise its data handling as a means to promote efficiency and save money is producing substantial workloads for IT businesses. The UK Government Digital Transformation Strategy is procuring billions of pounds worth of new projects, spending £3.1bn in fiscal 20/21 and, according to public.io, rising to £20bn per year by 2025.

Globally, spending in this area is expected to grow at a compound rate of 15-16 per cent through to 2030 such is the backlog of legacy system replacements. Total spend is expected to exceed $1 trillion by 2025 (according to research by Markets and Markets), double the spend in 2020. This is a long-term programme aiming to transform fundamentally the way the public sector operates, how it evolves strategies,  improves delivery of services to customers and reduces costs. As chart 1 shows, the government estimates that wholly digital service provision costs a tiny fraction of in-person, mail or phone-based services. A significant amount of the work to deliver this transformation is consciously being placed primarily with UK-based, small-to-medium sized enterprises (SMEs). 

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