The UK public service market is the most sophisticated in the world. Some other countries have engaged the private sector more extensively in certain sectors, but the UK has undoubtedly been the world leader in opening the delivery of public services to delivery by external providers.
Given the amount of goods and services accessed from external providers, it is vital that government does contracting well. In 2014-15, UK government spent £242 billion - almost one-third of total government expenditure - on external suppliers, compared with £194 billion on staff. Around £100 billion is spent on the procurement of services by external providers.
Of course, public sector employees carry out the most important functions of government - policy advice, financial control, contract management and delivery of the majority of front-line services - but it is clear that the way in which government manages its supply chain is extraordinarily important to the efficiency and effectiveness of public services.