Tenders should be opened to SMEs and a special deal for defence contractors unpicked to promote competition in the consultancy sector, a new policy paper says.
The closed shop of government consultancy tenders should be opened up to small and medium enterprises with special arrangements for the defence sector overhauled in a bid to break the stranglehold of the “big four” in the public service, according to a new paper circulated to senior federal ministers and state premiers.
“We should not be buying surrogate resources as consultants, that’s wasteful. We should be accessing skills, experience, and know-how not readily available through specialist and boutique firms, preferably Australian firms that can grow.”which triggered a broader Senate inquiry trawling into the operations of its fellow big four consultants KPMG, EY and Deloitte, as well as Accenture, Boston Consulting Group and McKinsey.
“Building public sector capacity cannot be the only answer from the Senate inquiry into the big four debacle as we will be doomed to an inevitable return to their dominance. Not only would that be disappointing, it would be an opportunity missed,” Mr Glenn said.Mr Glenn – who oversees a multimillion-dollar business after starting his firm Kiah Consulting two decades ago in his spare bedroom – has outlined four points that he says will shift the balance away from the foreign-owned consultants.
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