Local government: competition “pretty healthy”

The author of a recent report into the £1.1bn annual spend on agency staff in local government across the UK, says that despite the dominant position of five suppliers, competition “is pretty healthy.”
Fri, 17 Feb 2012
The author of a recent report into the £1.1bn annual spend on agency staff in local government across the UK, says that despite the dominant position of five suppliers, competition “is pretty healthy.”

According to Ian Makgill, managing director of GovMark, a company that provides research to government suppliers, the top five suppliers areComensura 36%
    Matrix Supply Chain Management 16%
    Hays 11%
    Manpower 10%
    Randstad 5%

Makgill, who is also author of the report tells Recruiter that together these five have 78% of the contracts by value, amounting to around £2.9bn.

Five more suppliers provide an additional 14%:

    Pertemps 4%
    Badenoch & Clark 3%
    Reed 3%
    Capita 2%
    Carlisle 2%

Makgill says he expects some of this latter tier of organisations “to start to win some contracts from the big boys.”

The report notes that 41% of Comensura’s contracts (by value) are due to expire in 2012.

For more on how recruiters supplying local government are facing up to the current climate of austerity in the sector, see the February issue of Recruiter, out now.

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