PracticeConsultingPublic sector increases spend on consultants

Public sector increases spend on consultants

The public sector is the only major market within consultancy that has increased its spending on consulting services, with fee income from government clients rising by 14% last year.

According to the latest Management Consultancy public sector survey, consultancy fee income from local and central government rose to £998m in 2003 from £404m in 1998. The figures exclude activities such as procurement and outsourcing.

Consultancy spend declines

In 2003, 50 firms reported fee income from the government sector compared with 37 in 1998. And despite local government being the smaller market, 37 firms reported fees last year compared with 17 six years ago.

The survey found last year?s fee income from the NHS to be modest at 34% of the total fee income of the local government market, or £71m. However, that figure is predicted to swell considerably in the next few years due to the NPfIT.

Gareth Bunn, head of public sector consulting at Capgemini, said: ?Central government departments with the biggest change agendas are likely to continue to be significant purchasers of consultancy.

?The issue with local government is that whereas the agenda for change is extensive, few councils have the budgets available to deliver the changes required. This is in part why there are significant transformational outsourcing procurements being undertaken.?

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