Government selects McKinsey for future technology strategy work

23 August 2021 2 min. read

Management consultancy McKinsey & Company has won a contract to build business cases ahead of the government’s annual spending review. The firm landed the eight-week project via the government’s Management Consultancy Framework.

McKinsey & Company will now provide consultancy on the digitisation of services and automation. The firm’s work will help establish a government data exchange, with the firm developing a hosting strategy, migrating systems to a government hybrid cloud and tackling expensive legacy tech risk.

The contract was awarded to McKinsey after an invitation to tender was released in June. The process was run on the Cabinet Office’s Managing Consultancy Framework (MCF), the purpose of which noted the Cabinet Office was “seeking expert consultancy support to design the cross-departmental approach to tackling core digital, data and technology priorities, developing cross-government business cases and work plans.”

Government selects McKinsey for future technology strategy work

The contract is reported to be worth a maximum of £3 million. If that maximum were reached, it would constitute a spend of £53,571 per day over eight weeks. However, it should be noted that as this is the maximum possible spend, the Cabinet Office has noted the actual spend is likely to be less. 

A statement published by technology news site The Register from a government spokesman said, “McKinsey was awarded a contract to supply management consultancy services to the Central Digital and Data Office for a period of eight weeks. This followed an open and transparent tendering process which went through all of the normal processes for such a contract”.

The tender noted that the winning supplier would need to "produce compelling business cases for investment" for the Government Digital Services (GDS) and Central Digital and Data Office (CDDO). Alongside McKinsey, EY, Bain and Boston Consulting Group are all reported to have competed for the contract. According to The Register, the contract could leave the firm in line for more lucrative work following this project.

Speaking to The Register, senior sources within government tech circles suggested, “The dream of the GDS plus SME landscape to shape and drive the digital and tech agenda of government is now in the hands of McKinsey… Whoever builds the business cases is obviously best placed to win the follow-on works.”