Friday, March 04, 2011

[IWS] CCPA (Canada): The Shadow Public Service: The swelling ranks of federal government outsourced workers [3 March 2011]

IWS Documented News Service
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor----------------------
Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau


Canadian Centre for Policy Alternatives


The Shadow Public Service: The swelling ranks of federal government outsourced workers [3 March 2011]


[full-text, 28 pages]


About this Publication


If the federal government wants to get serious about spending controls, it needs to look critically at its ballooning outsourcing costs. This study finds that over the past five years, personnel outsourcing costs have risen 79%. While federal departments have had their budgets capped, expenditures on outside consultants have not been touched and remain above $1 billion a year.


The growing and concentrated nature of outsourcing has created a shadow public service that works alongside the real public service—but without the same hiring practices or transparency requirements. This study makes specific recommendations to help curb rising costs and make better use of the resources the government already has.


5 Executive Summary

6 Introduction

6 How Ottawa Makes Use of Outsourcing

7 Areas of Focus

9 The Costs of Outsourcing

Contracts Signed vs. Amount Spent

Winning Contract Value vs. Final Contract Value

13 Biggest Outsourcing Departments

15 Top Outsourcing Companies

The IT-SSO Initiative

17 Why Outsourcing is Expanding

Outsourcing Makes Management Easier…for Managers…and at a cost

Federal Government Hiring is Cumbersome

Bilingualism and Meritocracy

18 Hidden Costs of Outsourcing

Institutional Knowledge

Change Fees and Future Needs

Privacy, Security and Transparency

19 Recommendations

20 Conclusion

22 Appendix 1: Data Sources & Methodology

24 Notes



This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       



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