Government should better support SMEs

A new survey conducted with the outsourcing industry has revealed a majority (71%) believe Whitehall should be doing more to support small and medium-sized businesses win more work with Government organisations.

The Interim Partners survey, conducted with CEOs, CFOs, and Chairmen of some of the country's largest outsourcing and facilities management businesses, discovered "strong industry agreement" with the perception that Government favours "larger outsource companies when allocating contracts".

"Despite the Coalition Government's attempts to improve outsourcing to SMEs, industry leaders agree that more should be done to help smaller bidders for Government work," said Mark Kitchen, Head of Practice for Business and Support Services at Interim Partners. "Whilst some contracts can only go to outsourcers that have reached a certain scale, there is the concern that too much of the outsourcing market will consolidate in the hands of just a few players."

Kitchen added, "Directors of mid-tier FM providers and outsourcers do not want to see the rapid consolidation within the sector that could happen if small providers are permanently locked out of the market for Government work. Many larger providers sub-contract some of their work to small, specialist providers so they want to see as healthy a supply chain as possible."

The survey also revealed 79% of respondents believed more work from the Government would be forthcoming, thanks to the coalition's on-going austerity drive. Kitchen said this expectation came from increasing acceptance that outsourcers and facilities management suppliers can help deliver public services more cost effectively that the Government itself. "As further cuts are implemented support services businesses are expecting an increase in demand from central and local government," he said.