Tuesday, September 5, 2006

NHS blow for consulting industry

A number of high-profile consulting firms have been reeling from the impact the NPfIT project has had on their finances, with cash either coming into the businesses far slower than anticipated - or provisions having to be made for expected future losses on the work. This is having a very real effect on the consulting workforce, with many firms financially strapped and unable to push through the salary rises that many in the industry have been expecting from the resurgent industry.

As if these financial woes were not bad enough, the consulting industry is now to be hit by a further NHS blow in the form of bad press. The Guardian and Accountancy Age are just two publications that are today covering the news that the National Audit Office's review of the NPfIT project is to be reopened - only weeks after it was given a clean bill of health in an NAO report. The decision tees up weeks of potential bad press for the consulting industry, as problems with the project are dragged up again - and consultancies are made the scapegoats for what is proving to be a political dream that's exceptionally hard to realise. Expect this one to drag and drag through until Christmas time at least...

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