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Firms agonise over pitching as NHS squeezes panel rates

I've said it here before, if you price yourself low now, do not expect to be able to get back to the previous levels, ever. Once the benchmark has been set there isn't a hope in hell of any public sector client paying anything other than an inflationary rise with the deficit running at £2trillion and the media applying untold scrutiny to the sector. Furthermore, the rest of the public sector will follow the lead of the Met and NHS so consequences of the bidding process here are relevant for all firms with public sector contracts. A couple of the firms on that panel are going to have to take some seriously tough choices as pillars of their business model are built on healthcare and NHS work. We all know firms who have bid too low on public sector contracts in the past just to get the work and where are they now?

1-Aug-2011

1:43 pm