Speaking before the business body's annual dinner, Linda Urquhart urged the public sector to utilise the expertise of private companies to "restore equilibrium", amid fears over the impact falling expenditure could have on British employment.
"Many working in national and local government understand the reality and are thinking the unthinkable," she said. "Traditionally, the private sector denigrates the public sector and vice versa. The reality is that there is good and bad in both."
Ms Urquhart admitted that job losses are "inevitable" when the coalition's axe comes down on public services, but suggested that an increased degree of competition could have a positive impact.
Professionals concerned about the effect the austerity cuts may have on human resources could benefit from attending the Public Sector HR Forum 2010, which takes place at London's Canary Wharf in November.
Posted by Cameron Thomson
