With the government tightening the purse strings and reducing spending on IT projects the suppliers have to quickly adjust to a new reality.
Accenture is one of Europe biggest IT service providers and it has a big footprint in the UK central government. But in local government it has more of a stiletto print.
Well that is until this month when Accenture signed its first major local government outsourcing deal in the UK. I upset Accenture last week by referring to the deal with the City of London Corporation as its first major local government deal. This is because the company already has major local government deals outside the UK, including New York.
Could this deal be the first of many? When times are tough suppliers have to move outside their usual hunting ground to keep shareholders happy.
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Also see Accenture's Technology Vision for 2011.