Public works departments, with the main objective of cost-effectively optimizing resources (labor, equipment, materials, contracts, and assets), must constantly decide between the option of in-house versus outsourced labor. The benefits and costs of outsourced vs. in-house labor will be discussed in this presentation with specific advice regarding when to outsource and when to stay internal. Some specific factors integral to any in-house vs. outsourcing decision that will be mentioned include cost savings, improved service, lack of equipment, staff limitations, technical expertise, contractor availability, work monitoring, emergency repairs, and labor unions. Formulas for comparing internal costs and contractor costs will also be discussed.