In-Sourcing or Outsourcing: What Makes Sense in Today's Operating Environment?
Abstract
In the past several years, reliance on the private sector, especially in the area of service contracts, has increased. This increase is a result of various factors such as hiring restrictions (personnel ceilings), reduced budgets, the preference and policies of prior administrations, and increased requirements as a result of various overseas commitments and contingencies. To reduce the heavy reliance on contractors and balance the workforce mix, the Obama administration is energizing its forces to look for opportunities where insourcing of contracted functions is suitable and cost effective without impacting the operational efficiency of its various agencies and departments. The CECOM Life Cycle Management Command (LCMC) Software Engineering Center (SEC), a recognized leader in life cycle software sustainment, is considering increasing its use of insourcing as an option to reduce contracted services and increase organic expertise. As part of SEC's approach to workforce management and strategic human capital planning, and the overall center's effort to manage more efficiently and effectively, SEC leadership is giving special consideration to using Department of Defense (DoD) civilian employees to perform new functions or functions that are performed by contractors. The SEC leadership understands the importance of a balanced workforce and realizes the potential of significant dollar savings by insourcing. The leadership further realizes the benefits of insourcing and how such implementation will allow for better control and oversight of various critical functions, resulting in efficiencies, accountability, and better management practices. This research will aid in the development of SEC's future operational model, including concepts and strategies for balancing SEC's contractor-to-government staffing ratio, maximizing productivity, and cost savings.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 2010
- Accession Number
- ADA549315
Entities
People
- Medhat A. Abuhantash
Organizations
- Defense Acquisition University