It was only two years ago we published a story highlighting the seemingly endless opportunities in the Public Sector—analytics, cloud, digital services and cybersecurity, among others. That cover story—Public Sector's Big Reach—focused on the ancillary opportunities that would surely be coming the Public Sector's way. Some of them did, but in a sector so heavily influenced by Washington DC nothing can be taken for granted, especially the year before and after an election.
Carlos Otal, National Managing Partner of Grant Thornton's Public Sector practice, probably summed up the state of the current public sector practice best: "Discretionary spending is not going to be increasing. We used to talk about doing more with less. Now, we need to figure out how to do less with less. Big decisions need to be made regarding priorities—what are you going to do? What aren't you going to do, and why?"
That's the crux of the issue we examine in this month's cover story—The Public Sector Squeeze. Even though it seemed the public sector was primed for a big year, that's turning out not to be the case. And with the dysfunction in Washington reaching new levels of… well, dysfunction, it doesn't appear the public sector will be front and center anytime soon.
Nearly a decade removed from the Great Recession, spending levels—especially at the state level—are slowing down considerably. Sagging revenue, a demographic crunch, intensifying infrastructure-improvement needs, surging cybersecurity risks, 21st Century citizen expectations and a technological reckoning all loom larger than ever. Since 2008, the private sector, for sure, has figured out how to do more with less. So, too, will the public sector. Or, as Otal suggests, maybe even doing less with less.
Either way, public sector consultants clearly have their work cut out for them.
Joseph Kornik Publisher & Editor-in-Chief jkornik@alm.com
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.