What is the future of public sector consulting

The level of consulting in the public sector has fallen dramatically since the election but debates about when it will recover miss the point.

In a report commissioned by Capgemini Consulting, the research summarised in this report was based on a survey of more than 100 senior public sector managers across central and local government, and the NHS, and on in-depth interviews with 20 more during the course of October2010.

It demonstrates that senior public sector managers fully expect the private sector to play a bigger role incentral government in the future. But it also shows that they want to work with consulting firms in a new way. Joint ventures are expected to play an important role here, leveraging the skills of public and private sectors perhaps alongside those in voluntary organisations. Traditional consulting will be combined with “doing” and paid for on the basis of success. This creates a once-in-a-generation opportunity for the consulting industry to reinvent itself, at least where public sector work is concerned. But it will also depend on the public sector taking a more sophisticated approach, putting together commercial deals instead of simply buying advice.