What are some advantages and disadvantages of hiring private contractors?
The number one reason cited for using private contractors in Iraq is the same reason driving arguments for privatizing other government functions: Outsourcing saves taxpayer money because private firms in a competitive market can do the job more efficiently and at a lower cost. Critics question how money is saved if firms must pay employees higher wages to attract them to work in Iraq, but defenders point out that a) firms can hire and fire based on a surge capacity; b) that employees from non-Western countries can be paid lower wages; and c) that companies don’t have to pay all the long-term benefits that are required of the military. Critics also argue that financial efficiencies are lost when companies subcontract with other companies, as is typical of the private contractors operating in Iraq. No definitive studies on the cost-effectiveness of military outsourcing have been done yet. + Read more on the debate over cost-effectiveness. One of the major disadvantages of using private
