MANAGEMENT CONSULTING

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.

By Donna Joseph
Nov 18, 2023 11:04 PM
Canada hires KPMG for mgmt consulting; DNR spends $669.65k. Photo by SBR

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.


What To Read Next

U.S. Department of Labor Launches ‘Make America AI-Ready’ Initiative

U.S. Department of Labor Launches ‘Make America AI-Ready’ Initiative

The ‘Make America AI-Ready’ initiative is designed to ensure every American worker has the chance to learn foundational skills so they can benefit from the opportunities that the AI economy presents.
SLB Expands Nvidia Tie-Up to Scale AI Infrastructure in Energy Industry
Engineers and geoscientists can run simulations at greater speed, allowing them to test multiple scenarios in less time. This helps refine drilling strategies and improve production planning while reducing inefficiencies linked to slower analysis.
NCLA Asks SCOTUS to Revive Nondelegation Doctrine and Stop BLM from Writing Criminal Laws
It is far past time for the Supreme Court to decide a case that re-establishes its willingness to restrict legislative power to Congress, where We the People vested it.

Business





More on Financial Literacy

Content provided by finlittoday.com
Financial Literacy Post
PMP Certification and AI Upskilling Boost Salaries for Project Management Professionals,
Financial Literacy Post
PMP Certification and AI Upskilling Boost Salaries for Project Management Professionals,
Financial Literacy Post
PMP Certification and AI Upskilling Boost Salaries for Project Management Professionals,
Financial Literacy Post
PMP Certification and AI Upskilling Boost Salaries for Project Management Professionals,
Financial Literacy Post
PMP Certification and AI Upskilling Boost Salaries for Project Management Professionals,
Financial Literacy Post
PMP Certification and AI Upskilling Boost Salaries for Project Management Professionals,
Financial Literacy Post
PMP Certification and AI Upskilling Boost Salaries for Project Management Professionals,
Financial Literacy Post
PMP Certification and AI Upskilling Boost Salaries for Project Management Professionals,
Financial Literacy Post
PMP Certification and AI Upskilling Boost Salaries for Project Management Professionals,