New York City Cutting Back On Outside Consultants

NEW YORK (WCBS 880) – In the wake of the CityTime scandal, in which outside consultants are accused in an $80 million fraud scheme, the New York City city government is doing a 180.

WCBS 880’s Rich Lamb: NYC Will Insource More

It will be doing something that, in some measure, goes along with unions and also uses a novel term.

“Layers of outsourced contractors will be removed. We have too many contractors managing too many contractors managing too many contractors. The prices go up for work that ought to be done on the inside. So, this will be applied across all large IT contracts,” Deputy Mayor Stephen Goldsmith told WCBS 880 reporter Rich Lamb. “More of the work will be insourced and maybe even more importantly, the work that is outsourced will be much more closely controlled. The scope will be more tightly limited.”

He says insourcing will first be applied to the Department of Information Technology, but may also work out with other departments.

Goldsmith, who was famous for outsourcing when he was Indianapolis mayor, says insourcing could potentially save the city hundreds of millions of dollars.

“We’re going to save money, not just by bringing people inside, but by removing entire roles and responsibilities of some of those outside contractors,” said Goldsmith.

More from Rich Lamb

One Comment

  1. rob says:

    Well I guess the Mayor will make less money for hiring from within. But, hey, he made out big time over the decade with his outsourcing and big time KICKBACKS from the FAT CONTRACTS he doled out. I would be too if I make enough money throughout the years as he. SMART Son Of A Bishop he is.

  2. bestoutsourcingpartners says:

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  3. ExtraExtra says:

    My mistake. A lot of I.T. titles are NON-COMPETITIVE–they can hire whomever they want as Probable Permanent workers, not Provisionals. Once they receive their permanent appointments, they’ll be that much harder to remove, when their efforts at covering up the mess they made as consultants is discovered.

  4. ExtraExtra says:

    Of course, the insourcing will consist of hiring these consultants as high-paid provisional I.T. workers–now, they’ll receive all those so-called gold-plated benefits, to make up for any financial loss. After all, what City workers are qualified to do the work? You read it here, first.

  5. midi-man says:

    I agree and what about him being a financial wizard. Guess that though is out the door. He is only good at extending his arm, bending it at the elbow and patting him self on the back.

  6. Joannie says:

    It took three terms as Mayor for CEO Blumberg to figure all of this out? I’m glad he’s not running my company, it would be bankrupt. Alas, he is running the city…

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