Well, the government will announce an end to their contracts, and begin their own hiring process. Many contracted employees will be hired directly by the government, often without even having to move their desks. The remaining employees will either be retasked, let go, or spun off into a seperate company.</p>
<p>The company takes a hit, but not an unusual one. Most companies have to deal with customers who stop buying their product or service, and this is nothing different (other than scale). How big the hit is depends on a ton of factors.</p>
<p>Add to that…the contracting companies would hire new employees but now since the govies are “upgraded”, there will be less contractors needed AND the rates can be reduced. That would be a win-win for the government. </p>
<p>A contractor won’t like it because they would take a pay cut. At the same time, if you are an experienced I.T. contractor who does work for for like NSA/CIA/FBI/NRO and you are in a “high-demand” area you have to feel somewhat blessed to make $125,000-$175,000 for years with relatively low-stress jobs.</p>
<p>Well you would be paying these converted contractors-to-govies less money than when they were pure contractors. On top of that, you would need less of them because these new govies would now do the majority of the design/development work.</p>
Yes, they will get benefits, but in most cases there is still a net cost-savings, or CAN be depending on what political influences do to the equation.</p>