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Home » blogs » Paul Evans's blog

The appropriateness of SMEs as providers for many new media services

Submitted by Paul Evans on Thu, 2006-08-31 18:23. Procurement issues | procurement quality public-sector best value

Government departments seem doomed to repeat the same mistakes whenever they procure web-related services.

I don't know if anyone saw the following exchange - Private Eye magazine picked it up (and I was among the commenters):

http://www.blether.com/archives/2006/06/the_dti_respond.php

It's worth a look. One of the respondents suggested that a lobby needed to be constructed to explain to government why they are so poor at procuring effective web services.

I've had something on my own (personal) blog about this general issue - here:

http://nevertrustahippy.blogspot.com/2005/04/why-public-sector-websites-are-so.html

My first instinct - the business development one - is to say (of Government as a prospective client) "sod them - they aren't good customers, I should focus on a sector that does value our work." We have such a sector (as the fact that we have been trading profitably for four years would suggest).

But this is my (personal) problem. When we set this company up, part of the reasoning was that we wanted to make a social difference. Sure, we wanted to create jobs for ourselves and make money as well. But when I think about the projects that I'd like to work on, the government are the only client that would ever be likely to pay us to do them.

And when I see government actually paying the large management consultancies to do those plumb jobs, the appalling quality (and rumours of ludicrous fees paid for such low-rent work), it makes me think that somebody should do something about this!

In short, for this kind of work, well-managed projects procure their services by recognising that you buy people - not service descriptions. If you construct a tender in a way that either a management consultant or large tech consultant will win (or one that price will really be the main factor) then your project will just not succeed.

And if you hire a company that has ten-or-so employees and a high retention level, then you really do know what you are buying.

And another thing. A well managed relationship must provide a win-win for both parties. The way that government contracts are awarded, win-win is just not an option.

Discuss?

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