Transparency In Public Procurements

An EU Initiative and How It Affects the Software Market

August, 2019 | 4 min read

How is Public Procurement treated by EU?

As defined by the European Comission, public procurement refers to the process by which public authorities, such as government departments or local authorities, purchase work, goods or services from companies.

Usually, all medium and higher value contracts must be awarded through competitive procedures (tenders), although there are exclusions and exceptions, such as:

  • purchasing real estate
  • cases of extreme urgency
  • situations where there is only one possible supplier

There is a ruling that calls for tenders worth more than € 5.225 million (construction orders) / € 209,000 (other orders, issued by state and local government) / 135,000 € (other orders, issued by the federal government) have to be published in the European database TED.

All public procurement procedures in the EU are carried out on the basis of national rules. For higher value contracts, these rules are based on general EU public procurement rules.

The value limits (thresholds) that mark when EU rules are used depending on the subject of the purchase, and who is making the purchase. These thresholds are revised regularly and the amounts adjusted slightly (next revision is due in 2020).

Oil & Gas Software Market

Pen and paper were for too long the main worktools in many sectors of Oil & Gas, but the oil and gas industry is transforming in the digital age. Data analytics and IOT make way into the Oil & Gas systems, and AI is solving what once were complex problems.

We can say that the Oil & Gas sector is in the middle of the digital transformation and will be soon ready for the digital revolution.

Aircraft Maintenance Software Market

Aircraft maintenance is the performance of tasks required to ensure the continuing airworthiness of an aircraft or aircraft part.

The maintenance of aircraft is highly regulated, in order to ensure safe and correct functioning during flight. In civil aviation national regulations are coordinated under international standards, established by the International Civil Aviation Organization (ICAO). The ICAO standards have to be implemented by local airworthiness authorities to regulate the maintenance tasks, personnel and inspection system. Maintenance staff must be licensed for the tasks they carry out.

The aircraft maintenance software is built up to reduce downtime and to optimize maintenance processes. Additional services like consultation, data migration services, training, and customization are provided along the way.

The Aircraft Maintenance software market is a niched one but constantly evolving together with the new technologies.

What’s the situation on the German software market?

The software market suffered drastic changes in the last few years, expanding and becoming more fluid, new poles emerging in both Eastern and Western Europe.

As stated in an article published by Germany Trade & Invest (GTAI), Germany is one of the biggest software markets in Europe. The country accounts for approximately a quarter of the European software market by value, with the UK and France in distant second and third places (18.6 percent and 13.6 percent respectively). Germany’s software market has proven remarkably resistant to the global economic crisis.

A study conducted by the European Information Technology Observatory (EITO) revealed German software market revenue growth of 5.7 percent to over EUR 19 billion in 2014. According to Marketline, this growth trend is expected to continue through to 2019, with a CAGR of 5.5 percent forecast for the period 2016 to 2019.

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