I’ve been pleased to see some positive thinking in response to issues raised by the collapse of Carillion. I’m wary of jumping to rash conclusions about the sad turn of events earlier this year, but, as the saying goes, we should never waste a good crisis. This situation is an opportunity to learn from mistakes and create real change in the industry, so a disaster of that magnitude doesn’t happen again.

Worryingly, the Carillion episode also served as ammunition for those who were suspicious about private sector delivery of public services and sought to undermine the very concept of outsourcing. Within the context of a general decline of trust in big business, some commentators were questioning whether private companies should be making a profit doing public sector work, and whether they should be involved at all.

More reasoned thinking is prevailing. For example, cabinet secretary David Lidington delivered a speech in June in defence of outsourcing, providing a good overview of why it’s needed – for example, for delivering economies of scale, encouraging innovation, and bringing in specialist expertise. A recent report sponsored by the CBI, Partnering for Prosperity, says the outsourcing market is worth about £242bn per year, so it’s potentially a powerful lever for the government to encourage innovation, prosperity and social value.

“Generating social value should be at the heart of everything we do, especially when it comes to public sector contracts”

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