US President Donald Trump has imposed stricter regulations on consultancy spending, hitting professional services firm Deloitte particularly hard. As part of his efforts to reduce government waste, Mr. Trump has ordered agencies to conduct regular reviews of their contracts with outside consultants. The new rules require federal agencies to justify and document each expenditure exceeding $50,000, sparking a significant shake-up in the industry.
The impact on companies like Deloitte is being felt sharply, with the firm announcing plans to cut hundreds of jobs amid concerns over compliance costs. Industry insiders say that many small firms are also struggling to adapt to the new rules, which aim to prevent wasteful spending and ensure greater transparency.
The Trump administration’s clampdown on consultancy spending is seen as part of a broader effort to root out corruption and improve government efficiency. However, some argue that the new regulations could stifle innovation and hinder the ability of agencies to effectively respond to emerging challenges.
Source: https://www.ft.com/content/f546506d-7f2d-4f64-976d-3f73e48333d7