Public affairs and communications management

"Much election coverage lately on cutting the deficit through efficiency savings, including contracting out more public sector functions. The Budget in March extended Labour's efficiency target by £15bn. Now the Conservatives, with the help of efficiency guru Sir Peter Gershon, say they can find another £12bn in savings.

Hiring firms to manage government processes, supply goods or provide public services is not in itself new, nor uncontested. But with phrases like 'stripping out waste', 'doing more with less' and 'innovative public services' cropping up right, left and centre, it's not unreasonable to envisage contracting out in the public sector steadily continuing over the next few years, hung parliament or not.

This does not mean it will be all plain sailing for contracting firms. Suggestions that current suppliers to government departments could see contracts renegotiated to the tune of £3bn, or that planned IT projects will be shelved, mean some will have to defend themselves. Others will see opportunities in talk of contracted-out back office functions to knock £2bn off public expenditure, plus potential for deeper involvement in areas like children's services, healthcare and offender management.

Either way, for these organizations, positioning will be key to success. They will need to know the policy environment inside out and what decision-makers are thinking in detail. Research to understand how policy will evolve, the needs of public sector commissioners locally and nationally, and what makes their organization different from the rest, will be essential for effective public affairs and communications strategy. Those who don't risk getting left behind.