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 I feel that contracting out is more of a bad thing, depending on the situation and the agency that is seeking to contract out. It depends on who is looking at the situation and how it can personally affect them. A government agency such as the local city council may realize that they are over their yearly budget and need to cut back on their costs. They may decide that they want to contract out its trash collection to a private company.From a business standpoint, contracting out makes total sense. Outsourcing is a benefit in cutting down the overall cost. In the city council’s mind, they are able to save money by laying off a few or several employees who were previously doing the job. But, to the city workers that were just laid off, contracting out has forced them out of a job. Many of those city workers are now out of work, have no income, and lost their insurance benefits (let alone their children or spouses). This can also affect local businesses. They too can sometimes take a hit when the families have to cut their spending, which can potentially cause sales tax revenue to drop. The workers hired by the contractor can also be at a disadvantage. Most of the time the workers that are hired by the contractor are paid at or near minimum wage, let alone have very few or none with it comes to benefits. So, contracting out as a whole has a larger effect on more than just cutting cost.