Outsourcing and Privatizing Information Technology Re-examining the "Savings"
J. Michael Brower Department of Justice, Immigration, and Naturalization Service
The Department of Defense has taken about 80 percent of the government cutbacks since the end of the Cold War. As a result, information technology (IT) outsourcing and privatization has become a popular means to lower the cost of labor devoted to perform computer-related functions. This article advances a labor theory of value to explain the source of the profit and cost savings that underwrite outsourcing and privatization as popular financial tactics.
http://www.stsc.hill.af.mil/crosstalk/1999/01/brower.asp