The Public Sector and the Secondary Market

Initiated by the State in 2016 as part of its Action Publique 2022 program, the public sector must accelerate its digital transformation. The obligation to fully dematerialize services has notably led to an increase in software budgets related to digital projects. In 2020, they were estimated at around 8 billion euros, representing 14% of the software and IT services market in France[1]. However, Covid-19 should lead public actors to reduce their expenditures. In this context, the secondary market presents many advantages.

Like all sectors, the public sector has also experienced multiple upheavals due to the health crisis. On one hand, it highlighted the need for digital transition, but on the other, it also pushed for IT budget optimization. Thus, the public sector faces a dual challenge: accelerating its transformation and reducing costs.

A Highly Regulated Sector

Public organizations are required to follow well-defined processes. For instance, the Union of Public Purchasing Groups (UGAP) provides public buyers with a software catalog that meets all their needs.

However, this catalog is still subject to the conditions imposed by publishers (maintenance contracts, updates, etc.). Therefore, organizations may also encounter issues of obsolescence or underutilization of their licenses.

The Advantages of the Secondary Market

The second-hand market then offers them an economical and legal alternative, thus respecting all their constraints. On one hand, the multi-publisher offer meets all their needs. On the other hand, transactions are strictly regulated from a legal standpoint, ensuring the compliance of acquired licenses and the legality of processes.

Similarly, the savings made (up to 80% on purchase) also allow them to adhere to the often limited budgets that public services face. Not to mention that they too can resell their unused licenses and use the recovered funds for their digital transformation. The circle is complete.

[1] According to a Markess estimate, 2019