Changes to the government's IT procurement catalogues could change the shape of the industry by shutting out smaller suppliers and locking larger ones into continuous bidding, warns trade body Intellect.

The Catalist system, developed by Whitehall buying agency OGCbuying.solutions (OGCbs) remodels the framework agreements through which government departments and agencies procure services from suppliers. Catalist uses different categories of services to previous catalogues, and a smaller number of suppliers on each list.

OGCbs says the new system is simpler and easier to use. But Intellect warns that the new arrangements could reduce suppliers' access to the market.

'This could affect the shape of the industry, by driving companies out of business,' said public sector director Nick Kalisperas.

'The two issues are to ensure smaller companies have enough routes to market to make the public sector a viable proposition, and to make sure larger suppliers are not over-burdened by continuous procurements that drain manpower and finances.'

Public sector procurements are expensive and time-consuming, and smaller suppliers have traditionally been less able to compete with their larger rivals.

The OGC has launched a number of initiatives, including a one-stop shop for some contracts, to help smaller firms in the market.

Peter Scargill, national IT chairman of the Federation of Small Businesses, says that the changes to the Catalist system are inconsistent with this commitment to build a more varied supplier market for government IT.

'The government has made a lot of noise about actively supporting small businesses, but it has to put its money where its mouth is and not make it more difficult for them to get public sector work,' he said.

A spokeswoman for OGCbs said: 'Catalist is designed to simplify the offering to government customers, and to give them an improved service.'