Monday, June 10, 2013

Security: a growth business

The military has outsourced quite a lot of its work to private security contractors, like the infamous Blackwater.  So, I guess it's nothing new that we also outsource a lot of the NSA's work to a private security contractor, BoozAllen.  The latest security brouhaha has revealed that BoozAllen, which in the 20th century was a major management consulting firm, derives 98% of its revenue from the government.  And it is quite profitable revenue, netting income of $1.3 billion on revenue of $5.76 billion, a 23% margin.  Surprisingly, almost half of its employees hold top security clearances; it is possible that these clearances were granted by the company itself, as they are authorized to do.

Some have estimated that we have more than a million private contractors involved in our security efforts.

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