BSNL has been dialling the wrong consultant

In May 2024, a report that the American consultancy group, Boston Consulting Group, was to be involved in the revival strategy of state-owned Bharat Sanchar Nigam Limited and that BSNL was to pay BCG ₹132 crore for the consultancy drew much attention. In recent years, the public sector’s reliance on the services of external consultancy firms has increased exponentially — and not just in India but also worldwide. Need for scrutiny The case of BSNL has once again drawn attention to the contentious issue of the growing influence of consultancy firms within the public sector. For instance, BSNL, as a public sector enterprise, has historically played a vital role in India’s telecommunications landscape, particularly in bridging the digital divide and bringing telecommunication services to rural and underserved areas. The case of BSNL and BCG serves as a microcosm of the broader debate about the role of consultancy firms in public sector governance, state capacity and accountability.