Understanding the Public Services Industy

Public Services Industry Review
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The sector is dynamic. Companies have moved into PSI markets from other PSI
markets, from public sector ownership, from private provision of similar services
and from international markets. This movement has brought project and people
management skills and experience acquired in other areas. Two such examples
are BT who have grown from communications into IT services and VT Group
whose business has shifted from warship construction to providing mainstream
PSI services, both in defence and other sectors. Many companies span a range
of PSI markets, such as Capgemini who provide consulting, outsourcing and
technology services and Amey, who started in construction, but now provide a
wide range of integrated support services.
The sector is international. Many of the leading companies providing PSI services
are international operators. This is because the need for public service provision
is global leading to transferable business models. They also report that the UK
is open to international firms in this area and provides a more transparent and
predictable operating environment than many other countries.
Much of the sector operates in commercial as well as government markets. This
means that innovations and efficiencies developed with private sector clients
can be used in delivering services to the public sector. It also means that PSI
commissioners can look to commercial markets in order to attract PSI providers.
The consequence is that the public sector commissioner will need to take account
of wider demand and supply pressures on the industry and be aware of the
alternative private sector opportunities available to PSI providers.
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