Government Pays Double for Consultants
It looks like EDS are making a real killing from their government contracts!
Government consultants are making profits margins double those made in typical private sector contracts, according to internal documents seen by The Sunday Telegraph.
They show that EDS, a US technology company that is one of the largest government IT providers, has made operating profits of £767m on £2.6bn worth of work with the Department of Work & Pensions since 2003 – an average profit margin of around 29 per cent.
Now, I wonder which other department pays through the nose?
Over the past four years EDS has been paid nearly £809m by the MoD for the department's central IT system. The company reports that the contract has netted it profits of £291m – at an average profit margin of more than 18 per cent since 2003.
I wonder what their profit margin is for JPA?