Australia is a unique market for the Big 4 which is why the Australian Government is so willing to put the Big 4 through government enquiries:
- Public sector is a big part of the economy. Up until the PwC scandal, public sector has been a Top-3 sector for revenue
- Past federal and state governments have outsourced much of their policy and program delivery capabilities to the Big 4 to reduce the size of the public service. This resulted in persistent questions about whether it's appropriate use of taxpayers' money and if the government was obtaining value for money from the Big 4
- Australian Financial Review (WSJ equivalent) have dedicated journalists covering professional services which draws more media attention to Big 4 compared to other parts of the world
- Fundamentally, Australians care about fairness. If Australians feel they've been cheated on, whether in life or in business, they will demand justice
Great comment and a context we should have included! Better explanation than ours.
And we agree - it is not good for the government or for tax payers, that the government placed itself into a position where they no longer have the capacity to run programs themselves and are so dependent on overpriced consultants. Punishment has a ceiling when the enforcer is also a customer who cannot switch suppliers.
The AFR is a great point! Dedicated beat reporters who understand partnership economics, engagement structures, and regulatory filings produce a quality of coverage that generalist business journalists cannot match. Sustained, informed reporting is one of the reasons these scandals stay in the public eye long enough for parliamentary committees to act on them.
Australia is a unique market for the Big 4 which is why the Australian Government is so willing to put the Big 4 through government enquiries:
- Public sector is a big part of the economy. Up until the PwC scandal, public sector has been a Top-3 sector for revenue
- Past federal and state governments have outsourced much of their policy and program delivery capabilities to the Big 4 to reduce the size of the public service. This resulted in persistent questions about whether it's appropriate use of taxpayers' money and if the government was obtaining value for money from the Big 4
- Australian Financial Review (WSJ equivalent) have dedicated journalists covering professional services which draws more media attention to Big 4 compared to other parts of the world
- Fundamentally, Australians care about fairness. If Australians feel they've been cheated on, whether in life or in business, they will demand justice
Great comment and a context we should have included! Better explanation than ours.
And we agree - it is not good for the government or for tax payers, that the government placed itself into a position where they no longer have the capacity to run programs themselves and are so dependent on overpriced consultants. Punishment has a ceiling when the enforcer is also a customer who cannot switch suppliers.
The AFR is a great point! Dedicated beat reporters who understand partnership economics, engagement structures, and regulatory filings produce a quality of coverage that generalist business journalists cannot match. Sustained, informed reporting is one of the reasons these scandals stay in the public eye long enough for parliamentary committees to act on them.