McKinsey contracts: just the tip of the contracting-out iceberg

On January 30, 2023 PIPSC President Jennifer Carr, accompanied by Jordan McAuley, our specialist on outsourcing, testified before the House of Common Standing Committee on Government Operations and Estimates (OGGO) about the now-infamous McKinsey contracts awarded by the federal  government.

This follows her appearance before the same Committee last October – proof positive that PIPSC is now recognized as the leading expert on outsourcing in the federal public service.

Over the past few years, we have consistently delivered the same message, backed up by very extensive research: contracted-out work impacts the security of the government's IT systems, results in higher costs and lower quality services for Canadians, less transparency, less accountability and the loss of institutional knowledge and skills. And it hurts the ability of the government to recruit the professionals it needs.

While the present government is in the hot seat on this issue, this is not a new problem. Previous governments of all stripes have invested ever-increasing amounts into contracting out. McKinsey is just the latest example.

Years of unchecked spending on consultants has resulted in a shadow public service operating alongside the government workforce. This shadow public service plays by an entirely different set of rules: consultants are not hired based on merit, representation, fairness or transparency; they are not subject to budget restraints or hiring freezes; and they are not accountable to the Canadian public.

Canadians should be aware of how their money is being spent and of the true costs of such short-sightedness. That’s the context in which McKinsey contracts should be looked at.

The government must update its staffing policies and make hiring quicker and more efficient. It needs to invest in in-house expertise. There is no doubt that it would be far better to invest in a fully funded, permanent public sector solution to delivering high quality, cost-effective services to Canadians.


15 September 2016
Dear Members,

9 September 2016
This month Canadian university, college and high school students return to classes, many of them to pursue studies towards a profession.

23 August 2016
Dear Members, The Phoenix pay system continues to pose major problems for our members in the federal government. PIPSC remains committed to looking for ways to assist individual members as well as to work with senior public servants and elected officials to find solutions.

9 August 2016
I haven’t been paid since I started.

2 August 2016
PIPSC is reaching out to students hard hit by the federal government’s Phoenix pay problems

28 July 2016
The Parliamentary Committee on Government Operations will hold an emergency meeting on Thursday, July 28, 2016, 2-4 p.m. to discuss the Phoenix Pay System. The Committee meeting will stream live from http://parlvu.parl.gc.ca