Outsourcing figures don't add up
I hear all the time that it is cost-effective to outsource information technology services and I cannot understand this. I think there should be a new study made now that we are under the Federal Employees Retirement System (FERS) and the government does not have to pay that much into the retirement system anymore.
I can't understand how hiring a full-time GS employee is costing the government more money that hiring a contractor. I was a contractor making $65,000 a year, but the government was paying $125,000 for my services to my company.
If the government had hired me at a GS-13 even with FERS and Thrift Savings Plan at 5 percent, I don't think the cost to the government would be more than $125,000. Plus, the government would not have to worry as much about me leaving because of something better and it would have someone who would be there for the long haul.
I just don't see how under the new retirement system the government is saving money contracting out all IT services. Maybe I'm missing something, but I have looked at all the figures and they don't add up.
Name withheld by request
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