Information Technology Outsourcing is the State’s $2.5 Billion Addiction
State Wastes Billions on IT Contractors
On July 26, our union released a white paper that illustrates how an outdated and uncompetitive classification system is subsidized by the state’s longstanding dependence on contracting out.
Our research reveals that in the fiscal year 2016-2017, the State of California threw $2.5 billion at third-party contractors to perform work within the scope of the current civil service workforce.
Our white paper makes a compelling argument that IT Reclassification is the right thing to do for the taxpayer, for the state, and for state workers:
- Taxpayers would save more than $700 million a year if the state brought all its outsourced IT work back in-house.
- Eliminating outsourced work would strengthen the state’s IT infrastructure, reducing staffing inefficiencies and knowledge drain caused by a temporary IT workforce.
- Industry-competitive wages, better training and promotional opportunities will improve the morale, productivity and loyalty of the IT workforce.
The IT Reclass Team will continue to drive the state to make up real ground in recruiting IT professionals into state service as we negotiate civil service reforms.
“I question how the state can look at their dependency on contracting out and say that their current salary structure for state IT professionals meets their needs,” said Margarita Maldonado, Vice President for Bargaining. “By investing in the state IT workforce, the state has the opportunity to address their reliance on costly outsourcing.”