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.