PwC spin-off Scyne wins place on federal cloud computing panel

afr.com:

PwC Australia spin-off Scyne Advisory has replaced the embattled big four firm as a pre-vetted supplier of cloud computing services for the Commonwealth, and its consultants have won new work from a federal and Victorian departments.

Scyne’s interim leaders have also sent employment contracts to about 130 PwC partners that were invited to join the new firm, as they hold meetings to win back the trust of governments around the country. The PwC partners will continue to be part of the firm until the transaction formally completes.

Part of the team behind the Allegro Funds-backed Scyne Advisory: (from left) Ben Neal (Scyne Advisory ACT leader), Adrian Loader (Allegro co-founder), Fay Bou (Allegro managing director), Tim Jackson (Scyne (strategy and transformation leader), Diane Rutter (Scyne NSW leader). Renee Nowytarger

These initial positive developments for the ambitious and risky plan to reshape the advisory market shows there is an appetite for the types of services the outfit can supply, and for an advisory firm that only supplies services to the public sector.

If Scyne wins back a large proportion of the work its consultants had under PwC, it could become a major threat to the public sector advisory divisions of Deloitte, EY and KPMG. The entire sector is under pressure as the Albanese government looks to cut its bill on consultants and other professional service providers.

PwC’s leaders made the drastic decision to sell the firm’s public sector consulting division, which brought in about $600 million in revenue last financial year, and exit the market after the federal Department of Finance shut it out of winning new public sector work due to the firm’s response to its continuing tax leaks scandal.

The scandal,