Whitehall spends £1.1bn on IT consultants

21 Dec 2006

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IT consultants make up more than half of the £1.8bn that central government departments spend on external expertise, according to figures from the public spending watchdog.

The biggest single supplier of consultants is IBM, with £275m-worth of the total £1.1bn spent on technology experts, says the National Audit Office (NAO) report published last week.

The next biggest suppliers are LogicaCMG with £175m, Accenture with £130m and PA Consulting with £102m.

The NAO report says spending on consultants has dropped from a high of £2bn in 2003-4, with IT consultancy falling from 47 per cent to 31 per cent of the total.

‘While there have been some improvements in using consultants there is some way to go before central government overall is achieving good value for money,’ says the report.

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