Are public sector cuts good news for the private sector?

Wednesday’s announcement of the government’s Spending Review was greeted in some quarters with howls of derision by critics who argue that the cost-cutting measures are leading Britain into a new age of uncertainty. But how fair is this view?

It seems to me that the government has approached the review in the same manner as any organisation would do at the outset of a successful outsourcing deal. By reviewing performance as a whole, and then identifying non-core competencies in each department, the Chancellor has found where fewer resources need to be committed, and has trimmed the fat accordingly.

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Tags: IT outsourcing, public sector, public sector outsourcing, shared services

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