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"We are no longer called for a yes or a no": after the McKinsey affair, consulting firms weaned on public sector assignments

2023-12-10T08:18:30.262Z

Highlights: "We are no longer called for a yes or a no": after the McKinsey affair, consulting firms weaned on public sector assignments. "There is a slowdown in public orders from consulting firms," says David Ifrah, managing director of Syntec Conseil. The government has promised to reduce its reliance on skills outsourcing and its dependence on these private companies. For the period 2023-2027, it promises to limit the cost of public sector consultancy services to €150 million, compared to €226 million in 2018-2022.


INVESTIGATION - The scandal has led to a drop in public orders. But professionals hope that the law being prepared will, paradoxically, make it possible to revive business.


The curtain has fallen in France for the American McKinsey. Swept up in a state scandal and media turmoil in the aftermath of the pandemic, the consulting giant was deemed too influential in crisis management and public policymaking. Now, he is trying to keep a low profile in the country... To the delight of his rivals, who flew under the radar at the time of the controversy, and who are now benefiting from his setbacks. "We took the decision in 2021 to no longer participate in public tenders in France until further notice," Jean-Christophe Mieszala, senior partner at McKinsey, told Le Figaro.

Criticism from public opinion and the revelations of the Senate commission of inquiry into the purchase of consulting services by the state have undermined part of this market. "Let's say that some public administrations no longer call for a yes or a no...", sums up a Parisian partner of a large consulting firm. "There is a slowdown in public orders from consulting firms, due to a certain self-censorship on the part of government and ministry officials," says David Ifrah, managing director of Syntec Conseil.

The government has promised to reduce its reliance on skills outsourcing and its dependence on these private companies. For the period 2023-2027, it promises to limit the cost of public sector consultancy services to €150 million, compared to €226 million in 2018-2022. This slowdown is already visible in central administrations. The Interministerial Directorate for Public Transformation (DITP), the main point of contact for consultancy missions carried out by ministries, has made significant cuts in its budgets. From January 2022 to the end of the first quarter of 2023, the Ministries of the Interior and Overseas Territories were the best performers in terms of reducing consultancy spending, with decreases of 80% and 40% respectively. The executive has pledged for the next four years to cap each consultancy assignment at €<> million. Beyond this amount, a separate call for tenders becomes mandatory, a way of discouraging ministries by multiplying procedures...

Read alsoMcKinsey, itinerary of a controversy

This change in atmosphere has created turbulence in the finances of the consulting giants...

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Source: lefigaro

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