Senior management routinely seem baffled that they could announce redundancies or hiring freezes, yet technology costs would continue to rise.
One pattern I saw repeatedly was a contractor being let go, only to return via a large outsourcing provider. The provider must have added a substantial markup despite supplying the same engineer back to the same team, without having incurred any procurement costs.
I once asked a more senior colleague how this made any sense. His answer stuck with me:
"You can’t stop people from doing their jobs. If someone thinks their job is to deliver X, they’ll find a way to deliver X. Sometimes that means working around processes and incentives in ways that look very strange from the outside."
the bank would go through cycles of "we need to reduce our headcount and outsource everything" and then 4 years later "we need to reduce spend on contractors and retain more knowledge and expertise in house". he'd survived multiple waves of it, switching back and forth between being an employee or a contractor through some external agency, as management trends changed, while essentially doing the same job.
Early on I used to try to explain that things don't work as advertised. There are a lot of advantages but you need a human reviewing and directing.
These days I don't even bother. Call it being desensitized to the bullshit, but I'm waiting for some fancy AI agent to take out stuff in a way that no one can do anything. Past that I don't see a way for C suite to wake up.
Didn't you mean to temporarily realign? I mean give it 2 years and another manager to show up, ready to get their bonus for the next attempt at it.
That's our reality and how we've structured our markets
The uncertainty never goes away. You can pay someone else to suffer it, but it will always cost more than dealing with it yourself.
And that can be ok. Just don't fool yourself into thinking you're getting a bargain.
This is true, but it's not the whole of it. In some cases the manager goes to a cabin in the woods to drunkenly shoot at moose with the head of the contracting company.
It's a saying that "the purpose of a system is what it does". I think it's a pretty dumb saying. But it is often worth talking a look at a system and see if the "mistakes" it makes (such as wasting money on contacting companies) aren't in fact desired by some people in the system.
Payroll is an ongoing commitment. Consultancy is a temporary service. Moving people from payroll to consultancy means they can reduce overhead in financial projections. Even though consultancy costs more, and employs the same people, it makes sense to do if it means you can convince shareholders and analysts that Opex will shrink in the future, and therefore profitability increase, and therefore the share price increases.
Isn't that just fraud?
But then they have to hire good managers and for that you need to be a good manager yourself.
Bit that doesn't really work in knowledge systems. Even with the best documentation people will build up knowledge that no one has, and their departure is costly.
Equally at the end of their contract a lot of time will need to be spend on a handover which slows down others even more.
So what happened? The contractor went via another middle man, which checked the correct boxes on the form, and everybody was happy.
I think that's the part management teams are missing. They assume that employees are just human resources and they can replace a senior engineer with a 100% equivalent one when needed.
I knew multiple people there who made more in signing bonus, pay during training, and severance than they made for work actually performed.
The CEO is convinced that this is the path to "top tech talent."
I don't know that I interacted with anybody senior enough to avoid this process in the time I worked there.
Understanding a bit of accounting / corporate finance opened my eyes to many things.
I dont think they're baffled, they just trying to show they're attempting to keep costs under control.
The people involved weren’t stupid. They were trying to achieve one outcome and got a different one because the rest of the organisation adapted to the incentives in front of them.
That's 'normal' in Canada and France.
Management just really needs to make the next earnings look like what it should look. Next quarter is next quarter's problem.
If there isn't enough guaranteed recurring work, it might not make sense to have a full time position, particularly in a country where its difficult to lay people off & if employees have additional overhead (pensions, employer funded heathcare or insurance, etc) vs contractors.
But, if there's funding allocated for some key project that's framed as a 6-12 month project, there might be a good business case to hire a contractor. Maybe the funding comes out of the project bucket, not the core funding for legacy product X bucket.
If the contractor is someone who was recently let go & has a good reputation within the company as someone who gets stuff done and is easy to work with, it's probably a no-brainer to re-engage them as a contractor vs rolling the dice on an unknown quantity.
Whoever is managing the budget of their old team gets a win as they were able to reduce headcount to fit in their budget
Whoever is managing the new project gets a win as they find a great contractor for their key project
The former employee returning as a contractor probably gets a win, as they get paid at a better daily rate while the project is rolling, provided they're able to line up more projects or land a new permie job once the project is completed.
If there's an outsourcer involved, they win by taking a cut. The former employee might also win by having the outsourcer involved if the company has some baroque process for engaging contractors with many compliance hoops to jump through -- in extreme cases (think banks, or public companies that need to demonstrate they don't do business with suppliers engaged in slavery, or so on) it could save the worker months of paperwork and tens of thousands in legal expenses to set up their own one-person agency and go through the compliance process to be able to work for their former employer, so they might not be able to win the contract work without piggybacking on an outsourcer who already has the contracts & compliance stuff sorted out.
this is just a guess by the way but it seems like a plausible one, as I've seen it happen in Fortune 500 a lot, where the same guy comes back through a different vendor 2 years later if he was really good and they needed him to come back....
[0] https://law.justia.com/cases/federal/appellate-courts/F3/120...
Contractor fees come out because of a different pot of money, so perverse incentives abound.
Now, the people being hired by the contractors are often former enlisted maintainers, but it won't be the ones doing the job previously because of a switchover like this. Those crews will have PCS'd.
It is common to have people separating and coming back immediately as contractors into basically the same job, but that’s usually because there is already a contracted workforce in place and they made connections while serving.
At my last performance review, at my last job (this is going back more than a decade now) one of my agreed KPIs was to take the lead on a 3-6 month project, making all the required technical decisions etc. and successfully delivering it on time and on budget.
I never got the opportunity, and quit that job six months later to start my own business, but still did contract work for them.
Got a social call a year later from my old boss (who also left, before I did) and got to tell them “so I hit my KPI, you’ll never believe what I had to do to make it happen…” :D
This is especially useful when projects are wound down. Let's say you've contracted to an org for support or management on a project that you want to kill, you've already obligated some amount of funds, and you don't really want to make that organization angry by ripping millions away from them (the pool of contractors is not large). What to do? Well, you could take Joe and give him a raise by suggesting he work for the contractor instead of you directly. Money's already spent, anyways. So you save your own money that you can use for your pet projects or whatever, Joe gets a raise, the contractor doesn't get a termination that pisses everyone off. Everyone happy, right? Smh.
The project was $1M+ which was enough for prison time. He had gone into our billing software and edited my entries - it wasn't as if he was submitting the fraudulent totals only - he was changing what I was entering.
I gathered as much documentation as I cloud and went to a law firm. They told me I had two options - report it to the Government Accounting Office or report it to the head of the project, an academic.
So I simultaneously resigned and reported it to the professor. I covered my butt. I'm pretty sure the professor hid the fraudulent billing but I didn't look into afterwards because basically that was what I was hoping he'd do so I wouldn't have to go to court and defend that my reported hours weren't really mine.
The full project was eventually awarded to another academic group.
Yes I know it’s not all that rare, BECAUSE people can’t be bothered to blow the whistle.
I don't think you have to be a full saint to fulfil your moral obligations. He ensured he wasn't implicitly participating and reported it to someone who had a responsibility to investigate/do something about it. That is a reasonable amount of effort to rectify the situation in my opinion.
> Yes I know it’s not all that rare, BECAUSE people can’t be bothered to blow the whistle.
The person you are responding to did "blow the whistle". They reported it to the project head. That is blowing the whistle.
Think about it logically. If you’re the prosecutor, the guy whose time is fraudulent is presumptively the criminal. It could very well be that he was actually the one who was engaged in the fraud, but went to the authorities to protect himself by making it look like his boss did it.
He's not really in a position to act usefully on this information, so had no reason to feel any culpability for not acting. It is only an interesting question when put to people were in a position where they had to make a choice.
There is always something you can do — whether you are going to bother is an altogether a different matter.
I think most people would blow the whistle if they had evidence of personal-enrichment fraud. Suspecting that incentives are producing strange outcomes is one thing; accusing specific people of criminal conduct is quite another.
Hilariously, in the one case I heard about where an MD was eventually fired for taking kickbacks from contractors, the department then struggled to recruit competent staff. It turned out he had only been skimming from people who could actually do the job.
In this case, either (1) the peon was lying about reported hours, the boss didn't notice, and then the peon reported himself... or (2) everything happened just like you said.
Aren't there bounties for reporting things like this? At the very least winning should include reimbursement for legal expenses.
1. No mens rea.
2. He did what was expected of him.
3. You're always free to break into prison if you find yourself in his position, but you might discover yourself sitting in a pool of shit that was not of your own making.
4. Do you really want the parent poster to face the possibility of criminal prosecution, because his scumbag boss convinces the DOJ that the parent poster were the one fucking with the hours, and tried to pin it on him?
Spend the budget or next time people will ask why you need all that money when you didn't spend it last time. Expensive projects are important projects. Important projects make careers. That is baked in several layers deep. You'd need to report it to a waste and fraud line, ombudsman, or similar.
I'm not sure its unusual enough to bother, though.
The crazy thing was that if she worked for 10 hours on SBIR stuff, then worked 40 hours on her normal work stuff (so overtime), the SBIR billing would get scaled down to 8 hours (that is, 25% of 40 hours). There would be no way to bill 80 hours.
The other thing that seemed somewhat crazy is that it was also common to have multiple SBIR contracts going on at the same time. If they bought a $10K tool for SBIR grant #1 and SBIR grant #2 needed it two, they'd have to buy a second one. So the tool would be out, then when switching between work on the grants, the tool would go into a locked cabinet, then the second copy of the tool would get unlocked from a different cabinet. I understand that firewalling like that prevents a company from "borrowing" expensive equipment for their own work, but it lead to waste like I just described.
I guess it may not be normal but I got straight time overtime when I worked for a contractor. Made those weeks I really did do 80 hrs nice. But if they have any system involved the fact you did not get paid for the time would be a big red flag.
I've always heard of this nugget of wisdom but never really understood it. By punishing those who underspend (by making the next application harder), wouldn't you incentivise inflated research costs, or worse, fraud. Seems like a quick path to a positive feedback loop towards the degradation of trust in academic spending, leading to "poor government efficiency".
The rank above you has decided "we need $1 million of software, go buy that." They don't know exactly how much stuff costs, so they use a dollar value as a rough proxy.
If, as manager, you cut corners to save money, you're doing the wrong thing. They want the software! They don't to keep want the money, that's why it was allocated in the budget. Go buy us more Useful Stuff!
but the problem here is how budgets are assigned. instead of a fixed number it should have a lower and an upper bound. at least X, but no more than Y. the closer to you get the better, but next year the budget will be the same range. only if you drop below X you run into the above problem, but then it's much less likely and if you really spend that little something else is wrong or the budget really was to high.
Most solutions to this problem are essentially what the OP recognized as nakedly illegal---that is, exaggerating productive hours---but most contractors are savvy enough to do it in less auditable and more positively regarded ways, such as stretching out timelines (four 20-hour work weeks raise fewer flags than one 80-hour week), adding more chefs than the kitchen calls for, or funding unnecessary little side projects. Straight-up tampering with timecards is an impatient and dangerous way of achieving (IMO) the same wasteful evil as happens everywhere else in the public and private sector.
1 https://www.nrc.nl/nieuws/2024/02/15/het-subsidiepotje-moet-...
It’s also still a reasonable question to ask “well, last year we budgeted $15M and you got acceptable results while spending only $14M; perhaps you only need $14M/yr…” And despite its reasonableness, many people would prefer to oversee a $15M/yr budget.
It’s little surprise what happens under such a system: logical people over-reserve.
The owner was the son of an old school magnate out of PA.
Among other things his line has always stuck with me: "A whale that surfaces is soon harpooned."
The company never made money. I think the whole thing was run as a loss on purpose for tax purposes. I became tired of the head manager/engineer combo (big fish in this tiny, tiny world) and left.
Even they knew this company was never really trying to do anything serious. Strange indeed
If you have a lot of money it’s fun to LARP the startup life. The experience working for such a company is highly varied and completely depends on the personality of the founder. But even if it’s a healthy place, it’s usually a black hole from a career development POV.
It doesn't matter if it costs a lot of money to maintain. Yachts and sports cars do the same. That's actually like the whole point of it, after all.
It could’ve been worse, it could’ve been a fraud! But it’s merely a business designed to lose money. It won’t land you in jail but it’s not a place anyone would advance a career.
I have been on the other side of this, building a frontend that connected to an external service robot that we, with a 5 minute script, managed to successfully prove internally was just a if/then/else state machine.
We got paid to make it, so we didn't care, but we knew someone was losing money.
From my perspective, you're a victim of this fraud too. I think the pursuit of meaningful work is an important way many people find meaning in life, and it sucks that someone took advantage of you. From this piece, I get the impression that you would never have spent so much time and effort on this role if you had known it was just a way to scam investors.
So, don't be hard on yourself. It's normal to feel guilty, but if you didn't have a perspective on the entire company or knowledge of the fraud, I don't know what you could have done.
You weren’t committing fraud. You did real work. Now you’re in the US with a family and a career.
Happy Father’s Day.
It's a pretty frustrating experience -- was it all for naught? Maybe it's useful to vent about it a bit.
"We're not shipping? Well, that's a bummer, but also, what a relief! If building it that was this hard, I can only imagine how bad shipping it would've been; now we can delete that code and with it all of the maintenance we would've had to commit to for years."
The personal attachment just had to go eventually. It proved not to be terribly helpful or healthy anyways.
I accepted a long time ago that it is all for naught :)
Enjoy our time on this earth, do what we can, focus on people and it'll be alright
It also feels like willfully abandoning the bit of agency you still have if you don't even try to understand why the world around you works like it does.
For almost everyone, working is not the best way to spend their time, it's just how they can afford the stuff they do the rest of the time. Obviously it's preferable if it's useful and/or enjoyable, but they're not necessary qualities.
>It also feels like willfully abandoning the bit of agency you still have if you don't even try to understand why the world around you works like it does.
Odd. "Agency" usually refers to the ability to exert will. Understanding would not seem to contribute towards that.
'Useful' is not even a thought that's ever entered their brain.
When the world starts paying people for the best use of their time, people will start prioritizing that.
I knew this, but took the job because I was burned out and knew I could spend a year or two coasting and padding my resume with some interesting things.
I came to the conclusion that the company was a grift, but at least they took care of their employees and included them in the profit part of it.
We had startup perks that were basically paid out in cash when the pandemic hit. The “gym” perk became $500 in cash which could be spent on anything vaguely fitness related, like an Apple Watch. The commuter benefits rolled into our accounts which gave me free tolls for years afterward. Instead of taking all the money, they cut us in.
So yeah, maybe frustrating if you expected your startup to be successful, but that’s so often outside of the control of any engineer. It’s always a crap shoot. Get your best offer and make the most of it. You can do resume driven development even in the shadiest of firms.
All good grifts let some "little people" in on it so they go to bat for it.
However, I was quite surprised a few weeks ago, on a client project, to find in one of their repos a chunk of example code that I’d worked on 22 years ago.
[0] Being real, a lot of the ephemerality actually stems from questionable commercial decisions, working on the wrong thing, etc. But some at least is a legitimate result of evolving markets and needs.
I suspect some of my open source contributions will live a long time. Not my personal projects that I make open source just in case, but the (very small) contributions to fix things in the dark shadows of established projects with longevity. Some of that will become obsolete and hopefully be removed, and some might get refactored eventually, but if the project is older than my career it's may well last beyond me.
I would have thought most people would grow out of having this kind of feeling after their 1st job. But I also definitely work to live, not live to work, so YMMV.
> Did my old job only exist because the Product Owners didn't realize we didn't have product-market fit?
Which is maybe as it should be, but it does pit agonized debates over detailed technical work in perspective.
So let them do damage. I do what I am told, I have the strategic thinking but not many have made use of it. OK. It's their right. I still pocket a wage. They could have gotten more for their money but consciously chose not to. Who am I to stop them? (And not like I actually can.)
At the end of the day, if they choose spend their magic beans on shitty features, I’m still getting paid. Then again, I’m at a larger company, not a startup.
In this regard, we aren’t standing on shoulders of giants, we are like an immense asshole of a dad climbing ontop of his young child’s shoulders to win a chicken fight in the pool while his kid drowns below.
It reminded me a lot of the Bill Cosby skit about the game Keno, he used an example of a Keno Card that had two numbers on it, you picked one and took it up to the cashier with your $1 bet, the cashier drew a number and said, "Sorry not your number, try again."
The sad truth was that a lot of people who had become wealthy because they happened to be working at a company that went public and had stock, were not particularly sophisticated when it came to the reality that even people "like you" were not your friends. I spent my Jr High/High School years in Las Vegas and got to see so many 'confidence men' fleece tourists with so many schemes. There is a great book called 'The Confidence Game' by Maria Konnikova. It is excellent and reading it you'll come to understand that not only is it possible for even 'smart' people to be taken, there are lots of people who work on being good at it.
But taking all of that into consideration, if you worked at a company, did your job to the best of your ability, and it turned out that it was a "fake" job because some third party was using it as part of a scam, you aren't part of the scam. Any more than happening to be in a bus when the driver whose been drinking kills a pedestrian. You aren't responsible for that pedestrians death and you're not being on the bus wouldn't have changed anything. So you can let that go.
The passengers on the bus are not blameless if they know or have reason to know that the bus driver was drinking before or while they went down a road with pedestrian crossings. They are not blameless if they take no action, but to sit in the seats and wait to see if anyone gets hit or they all get away with it and arrive at the destination.
Or if they remain in the seats after the first pedestrian and 'hope' it wont happen more.
And how 'blameless' are the 'non-passengers' along for the ride to perform ongoing maintenance and provide fuel and snacks to the driver while on this imaginary trip to hell.
So, I'm all out of 'you're not really the asshole' cards as we watch the whole kleptocratic SV system run Theranos' style over the total sum of human creative production.
Anyone who participates in building the toolchains of tyranny is complicit in the abuse of people with those tools, even if it just a tiny bit.
Sorry, not sorry, if that pricks the consciences of a few pricks; those that can feel shame are the better for it, and those who feel it not we must all be wary of.
It became pretty obvious to me from the get-go that nothing was being built, and the startup was just siphoning money off the parent company. I'm not sure if there was any fraud going on beyond a bunch of people collecting a paycheck.
I think the boss was skimming off of the captive H1Bs, and there was a guy in NYC who never did anything as far as I could tell. I wouldn't be surprised if there was some kind of kickback going on there.
My first day, I went out for sushi with the top devs, who proceeded to tell one horror story after another about the boss. Awesome way to start a job. I lasted 3 months.
At the other end of this extreme is if you have a good job in a bad industry, like gambling or boiler room frauds. You should feel responsible even if your job is just maintaining the servers.
Second, very few things in life are so cut and dry. Legal cases are by nature simplified abstractions that attempt to render a three dimensional situation that unfolded over a long time in a few pages of a graphic novel.
Third, this sort of thing is so incredibly common. Often the only difference between fraud and IPO is whether it worked or not. That's not cynicism, just pragmatism.
If you ever read David Graeber's Bullshit Jobs - and you should - you'll quickly decide that the real fraud is late capitalism writ large.
imagine a world where SBF didn’t defraud the crypto world.
in that world anthropic may have not existed.
Your bosses might not actually care about the work you do, but your users and customers sure will.
Also, when you do a good job, ex-coworkers will often reach out to you to give you better opportunities.
I did that in the health sector of my local gov, the whole place was full of consultant who either got contracted directly from Oracle, used to work at Oracle before but moved there or took the Oracle pill early on and never got the idea to see how things get done elsewhere. It was impossible to ship anything that's not made of Oracle technologies and that was not an accident but a deliberate construction.
And yes i can relate to that. In 26 years of career, about half of the money i made and all of the money i saved, came from 3 clients (over the course of less than 5 years), all 3 of them being scams - one swindled investors for a thing he knew can't work, another one did a legit thing but when he realised it failed, exited to a dumb megacorp and ran away (literally vanished) when they started to realise they've been duped, and one more was in crypto field and whole project - which to me, all the way until past release, looked like a legit porn site - had a goal of imitating activity/interest to boost value of a crypto token.
Even before i picked up coding - and i did it when i was in early teens around the fall of Communism - i knew coding as a separate field and a business was invented exactly for that purpose: it's a lot easier to steal money that way because it's a lot easier to inflate costs vs buying physical products.
No surprise the party is over. People can't be duped for too long.
if you don't own the capital and have full autonomy, what's the difference on fraud (that you know nothing about), some imoral thing like flock/advertising/surveillance, or some inane thing like animating characters for ads, or mailing spam letters for a small business, etc, etc, etc?