Government suppliers fight back and renegotiating contracts isn’t so ‘immediate’

Here is an article from the Guardian about the Government's  'negotiating cost savings from major suppliers" initiative.

It is written by a guy who  is a board member of the National Outsourcing Association so the argument is a little predictable, but I particularly enjoyed the 'comments' from readers below the main article.  They range from amusing through to vitriolic hatred for consultants, suppliers (and even civil servants in some cases); to some that are actually very perceptive about the issue and opportunities.  If you have a spare 10 minutes, worth a browse.

By the way, I noticed the Cabinet Office press release for the Maude meeting with top suppliers says:

"This event marks the start of the process .." (my emphasis).  Then we get this:

"When it starts officially, the negotiation programme will cover...."

Hang on, this was announced weeks ago...and it was going to be immediate.  Here is the quote from May 24th when the Efficiency and Reform Group was formed;

The group’s first priorities, with immediate effect, will be to:....

  • Start renegotiating contracts with major suppliers across Government to reduce costs;

So 6 weeks later the programme still hasn't "officially started"?  Is this the beginning of (downwards) expectation management?  Or is it just all proving a little more difficult than the politicians expected?  And why weren't Dell at the table? Or any construction suppliers?  The plot thickens.

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