Public sector consulting

There was a big fuss in the UK last year when the findings of a report by McKinsey on cutting costs in the National Health Service were leaked to the press. It was proposed that 137,000 clinical and admin posts would be cut in order to save £20bn by 2014. Vilified by the press, the government announced that it had rejected the report’s recommendations.

If we look for a moment at the UK consulting industry (every country is a bit different), we can divide it into three parts. On one side of the scales is the market in financial services; on the other is that in the public sector. Each of these markets is similar in size: in the middle and a little bigger than both is everything else: telecoms, utilities, manufacturing, media companies, etc.