Deloitte is the largest professional services company in the world and one of the big four accountancy firms. So what does its public sector business look like? These slides show how much it has grown over the past five years.
Deloitte’s presence in government has grown significantly in the past five years, from £50m in 2012. to £73m in 2016. This is an increase of 32%, an average of 6.5% annual growth. While turnover is increasing across both central and local government, it is most steep in central government. However, while Deloitte is in the top ten suppliers of professional services to local government, it still is not one of the top ten suppliers to central government.
2016 was a good year for Deloitte across the board. UK revenue up to the end of May was £3.04bn, a 13.6% increase, its fastest revenue growth in ten years. The highest growth was in M&A, risk management and regulatory services, international tax and compliance services, and business transformation, particularly concerning digital, cloud and analytics technologies.
Although most of Deloitte’s turnover is with central government, in 2016 its largest customer was is local government (Hampshire County Council) followed by the Department of Work and Pensions, the Ministry of Defence, the Department for Transport and the Home Office.
Over the five year period from 2012 to 2016, the five largest buyers were the Ministry of Defence, Hampshire County Council, the Department for Work and Pensions, Crossrail, and the Department for International Development. Income from the MOD peaked in 2014, and March 2014 remains Deloitte’s most profitable month of the five year period.
Deloitte is on multi-million pound framework contracts with the NHS Supply Chain (£600m), Transport for London (£95m) and the BBC (£25m). Its largest single government contract is with University College London for £40m.
The future for Deloitte in government looked rosy, but in December last year it publicly ruled themselves out of bidding for new contracts in Government for a six month period after an unflattering memo on the politics of Brexit. We'll be monitoring how this affects its revenues from government and whether it can recover.
About the analysis
These slides slides show our analysis of Deloitte’s business with over 330 different public bodies. They cover Central Government, Local Government, NHS and the Devolved Administrations.
Our analysis was conducted using our unique database of spending and contracts across the public sector. With over 130m lines of data, we know exactly who spent what with whom and what they bought.
We provide bespoke research and intelligence for the public sector market, we work directly with Government, suppliers and investors to help our clients make better decisions.