Industry: Central Government, Department of Works & Pensions, BPO, Facilities Services

Services: Strategy Consulting,  Account Growth, Pipeline Generation, Competitive Assessment

The Client

The client is a France-based provider of integrated and bespoke FM services especially to the energy and nuclear sector. Its range of services include security, catering, cleaning, landscape management as well as heating and ventilation, fluid management and power.

The Challenge

The client wanted to analyze the trend of expenditures within the Department of Works & Pensions and explore possible service provider opportunities within the department.

The Solution

• Assessment of DWP: The Department of Works & Pensions (DWP) is amongst the few departments that has been at the forefront of private sector involvement in several functional areas over several years. The UK government in its Spending Review had clearly identified the need for transforming several processes within its departments, the objective being cost curtailment largely through improving operational efficiencies. This was clearly evidenced in the fact that:
  • The total Departmental Expenditure Limit (DEL) for the government declined from £402 Bn in 2010-11 to £353 Bn in 2015-16, a CAGR drop of 2.5% during the period
  • DWP’s share in the total DEL declined as well, falling from 2.5% in 2010-11 to 2.0% in 2015-16

The private sector, with its deep expertise, can help fix issues with legacy systems and processes, identify loopholes for process re-engineering and develop more efficient ways for several department processes to work.

• Identifying Potential Outsourcing Services with DWP: As part of the assessment, a detailed analysis of DWP’s expenditure patterns revealed that the department had been engaging the private sector for several years in multiple functional and support areas including contact center services, application development, application maintenance, IT helpdesk and other related IT support services.
• Detailed Contract Listing: The analysis also captured the recent contracts outsourced by the DWP to the private sector for various services. This assessment, coupled with the understanding of how the government was planning transformational measures within the department, such as replacing the old Work Programme & Work Choice with the new Work & Health Programme, focusing on right-sizing the DWP to become more efficient and spend less on administration while also occupying less government estate etc. helped create a clear picture of DWP’s priorities and possible opportunities within the department for the client to focus on.