One of the more common practices is to simply insource the consultants. There’s a perverse incentive, wherein you’re paying $300/hr for a guy getting paid $40/hr, so you eventually realize you can offer them a 50% raise and achieve 80% savings in a single stroke.
it makes perfect financial sense but I’ve never actually seen that happen haha
what I see is that once a project is finished it gets outsourced further to employees or contractors in south asia who know even less than the consultants did
I’ve gotten that kind of offer when working in one of these contractor jobs a couple of times. but it was always from the absolute worst places that I would not consider working for directly, for any amount of money. like think paranoid executives building toxic workplaces where people sometimes die of stress-induced heart attack type shit. having a layer between me and them was protective and I was willing to “pay” 50% of my salary as protection money.
And then an MBA comes along and says we can save $2.4m over the next two years by laying off 10 of those employees. Then the MBA moves on to the next job by the time the company needs to go back and hire $400/hr consultants to fill in the cracks.
One of the more common practices is to simply insource the consultants. There’s a perverse incentive, wherein you’re paying $300/hr for a guy getting paid $40/hr, so you eventually realize you can offer them a 50% raise and achieve 80% savings in a single stroke.
it makes perfect financial sense but I’ve never actually seen that happen haha
what I see is that once a project is finished it gets outsourced further to employees or contractors in south asia who know even less than the consultants did
I’ve gotten that kind of offer when working in one of these contractor jobs a couple of times. but it was always from the absolute worst places that I would not consider working for directly, for any amount of money. like think paranoid executives building toxic workplaces where people sometimes die of stress-induced heart attack type shit. having a layer between me and them was protective and I was willing to “pay” 50% of my salary as protection money.
And then an MBA comes along and says we can save $2.4m over the next two years by laying off 10 of those employees. Then the MBA moves on to the next job by the time the company needs to go back and hire $400/hr consultants to fill in the cracks.