The REAL Cost of Outsourcing
It’s significantly cheaper to perform work in-house but understaffing and a lack of investment in training forces the state to use expensive for-profit companies to do the department’s regular work. The state has become so dependent on these consultants that many have become permanent fixtures in the DOT workforce doing the day-to-day work of the department.
The state compensates consulting companies for their medical premiums, vacation pay, and retirements, just as they do for state employees. The only difference is that these consultants are turning a profit, whereas state employees work at cost. The Department of Transportation’s own cost-effectiveness evaluations for construction engineering and inspection contracts show that inspections performed by in-house state employees could be completed in many instances at half the cost of outside for-profit consultants.
Connecticut state employees are among our state’s greatest assets. The services we provide are vital to our state’s economy, improve quality of life for residents, and save the state money. Short staffing, failure to refill positions, overuse of outside consultants, and a lack of investment are taking a serious toll on our effectiveness. We need greater investment in state service before we lose what we have built. NOTE: These numbers are just for DOT; outsourcing exists throughout state service.
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