Labor & Economic News Blog

Wednesday, August 09, 2006

The Outsourcing Trap

The Outsourcing Trap
In light of outsourcing trends worldwide, contracting out is appropriate only for a function that is not core to a business. According to the OMB Circular A-76, an activity is inherently governmental if it "is so intimately related to the public interest as to mandate performance by government personnel." Now, the Transportation Security Administration is outsourcing security workers, the Homeland Security Department is turning over the sovereign function of border security to private industry, and the Pentagon is contracting out thousands of intelligence jobs. How much more inherently governmental can these functions get? They define the federal government's role.

 



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