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It is so companies can lay off entire teams at a whim. When I was at MSFT, one of the orgs I was in was infamous for having over 50% vendors. On more than one
by com2kid 5y ago
It is so companies can lay off entire teams at a whim.
When I was at MSFT, one of the orgs I was in was infamous for having over 50% vendors. On more than one occasion entire teams would be laid off when budget cuts happened.
It is bad for FTE morale to regularly lay off 100 FTEs, less bad to lay off 100 vendors.
- PapaSpaceDelta 5y agoIt's an interesting part of corporate culture. Large companies hate the process of firing employees for a number of reasons: staff moral, public perception, potential legal liability, etc. This applies whether it's individuals for performance reasons, or entire teams for economic reasons. To avoid this, there is often a lot of (bureaucratic and difficult) process to justify the hiring of a new FTE. The corollary to this is that it's often a lot easier for a manager to hire a contractor or use an out-sourcing vendor, even if they don't see the requirements of the role being any different than that of a "permie" and even if it costs the company more money.