Thread by @roguechimp99

Outsourcing is a shift of wealth from a big reduction in workers’ pay and benefits, a reduction of training and employee development and skinnying of services and into the profits of a corporation. #abpoli #RecallKenney

This is bad for the economy as it creates more unstable work for employees and less money in their hands to spend in the economy. Every dollar in workers’ hands gets spent, almost all locally. $$ shifted to corporate balance sheets do not get spent to same degree.

Personal tax contributions from workers who make so much less reduces government revenues. Corporate taxes are significantly lower than personal income taxes. Outsourcing can mean less tax revenue for the government to fund services.

Using outsourcing service provider companies means they are protected under FOIP. This means less transparency, accountability for gov. The public will never be able to see the cost of failures in performance, cost escalations, legal settlements , etc.

There have already been major losses that taxpayers have already paid for in AB with outsourcing and you will never get to know how many millions it has already cost us. The government will never disclose and in some cases cannot (cuz of FOIP) without being sued.

It’s the same with P3s, another incestuous love-child of government and (donor)businesses that the UCP have already said they’ll bring back. These ideological decisions will cost Albertans millions more than we could have paid and w better outcomes.

Here’s one example. cbc.ca/news/canada/ca…

Here’s another: cbc.ca/news/canada/ca…

This on P3s costing us $BILLIONS MORE: cbc.ca/news/canada/ed…

Outsourcing is expensive especially over time because there is built-in dependency with the vendor. It is extremely difficult to repatriate the work and the knowledge embedded in the supplier back to in-house or to transition to your outsourcer’s competitor.

Costs escalate over time especially cuz outsourcers know you will not likely switch to another vendor or in-house cuz the risk and cost of transition is huge.

Conservative governments are counting on your lack of knowledge and tricking people into believing these deals make sense and save money. No they do not!

Once the outsourcer is in contract w GOA, it will be in a virtual MONOPOLY position w GOA and costs escalate over the years due to GOA’s dependency. The tolerance at GOA for price escalation goes up well past market value for those services.

Remember that these pricing changes are secret under the protection of privacy provisions in FOIPP. The public will never know these costs. Any access requests will be redacted.

Reason for price escalation is cuz GOA would outsource its knowledge - vendor knows more about the work than GOA. There is NO incentive to go to market and switch vendors cuz switch requires the cooperation of the losing incumbent to transfer that knowledge to a competitor.

Alternatively, to repatriate the work in-house also requires the losing incumbent vendor’s cooperation to transfer its knowledge to GOA. There is typically a very large cost to pay the incumbent vendor for its transition services (buy cooperation) plus lawyers and consultants.

These costs are concealed from the public.