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05 Mar 20201 minute read

Thinktank urges reform to prevent another Carillion

ECAtoday
Thinktank urges reform to prevent another Carillion

The Institute for Government has said Government departments urgently need to update their own outsourcing policies to prevent large companies form going under in the same way construction giant Carillion did in January 2018.

The Government’s ‘outsourcing playbook’ was published after Carillion, but several departments have yet to update internal policies, potentially leading to poor procurement decisions.

Speaking to the Guardian, Tom Sasse, senior researcher at IfG, said, “Carillion was a wakeup call, with its collapse showing where a careless approach to outsourcing can lead.”

A Cabinet Office spokesperson added, “We have made progress [on how Government works with suppliers] but there is more to do and we are working with departments to deliver training, targeted support and strengthened approval processes.”

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