The quality of services that are contracted out are jeopardized by a contractors incentive to make money. A less desirable workforce is created by replacing experienced public servants with inexperienced contract workers making near minimum wage. This less experienced workforce usually lack the skills and training to do the job. Employee turnover rates frequently increase when services are contracted out to low paid unskilled labor and safety regulations are sometimes avoided in order to maximize profits. Contracting with corporations located outside the community takes tax dollars outside of the local economy.
Privatization frequently costs much more than keeping the service in-house.
Corporate operating costs and earnings are written into the contracts and taxpayers ultimately foot the bill. Many contracts do not include costs for emergencies or unforeseen circumstances. Government agencies are usually charged separately for work not included in the contract.