Canada Taps KPMG for Management Consulting Amid Rising Government Outsourcing Costs
Notably, the Canadian government's expenditure on outsourcing for the fiscal year 2022-2023 has experienced a substantial increase, soaring to $15.7 billion—a nearly 88% surge from 2015-16 levels.
Canada has engaged KPMG for management consulting guidance, with the Department of Natural Resources allocating $669,650 for the contract. Minister Jonathan Wilkinson leads the department's efforts to investigate the efficient use and investment of tax dollars. This decision comes at a time when the Canadian government's spending on outsourcing has increased, contradicting the Liberals' 2015 commitment to diminish reliance on external consultants.
Treasury Board President Anita Anand is spearheading an initiative with the goal of reducing around $15 billion over a span of five years from the Canadian government's current spending plans.
Anand instructed all government departments to submit proposed cuts by October 2, subject to her review.
In reply to NDP MP Gord Johns' inquiry regarding contracts with third-party management firms, the involvement of KPMG was particularly noteworthy. The firm's analysis brought attention to the expanding scope of federal outsourcing, revealing a worrisome trend.
KPMG consultants delivered a conclusive report to the Ministry of Natural Resources on "IT cost optimization," encompassing aspects such as IT contractors, domain utilization, printer consolidation, software asset management, and recommendations for cost reduction. In response, the department sanctioned two task authorization payments under the existing KPMG contract, amounting to $669,650.
Notably, the Canadian government's expenditure on outsourcing for the fiscal year 2022-2023 has experienced a substantial increase, soaring to $15.7 billion—a nearly 88% surge from 2015-16 levels.
Last year, The Globe and Mail reported concerns about transparency in the Canadian government's spending on the ArriveCan app, slated to exceed $54 million. GCStrategies, a company on the app, received the most contracts despite having fewer than five employees and relying heavily on subcontractors. Issues regarding contract clarity were also highlighted.
In the previous year, The Globe and Mail expressed concerns regarding transparency in the Canadian government's expenditure on the ArriveCan app, projected to surpass $54 million. GCStrategies, a company associated with the app, secured the highest number of contracts despite having fewer than five employees and a substantial reliance on subcontractors. The report also underscored concerns about the clarity of contracts.
