Public sector consulting

2011 turned out to be another difficult year for public sector consultants in the UK, with little improvement even on the horizon, our research shows.  A “nuclear winter” was how one firm characterised it.  Some money is still being spent on consultants, particularly on new technology, security and international aid, but there’s also been a change in what organisations are looking for: the emphasis now is on deep expertise, not using consultants to plug gaps in line management.

As part of the research for our forthcoming report on the European consulting market, we’re in the process of interviewing literally hundreds of consulting firms across the region, from the biggest strategy firms to local specialists. And one thing that has struck me so far is the relentless rise of body-shopping, where clients define their requirements in terms of the skills they need rather than projects, and buy individuals rather than teams.

The fall in public sector expenditure on consultants in the UK since June’s election has been steeper and sharper than anyone expected. And it’s not stopping there: two thirds of senior public sector managers expect it to continue falling over the next year, our research has found.