

One answer could be that the organization maintains a large fund to act as a buffer to maintain salaries between contracts instead of operating “paycheck-to-paycheck.”
Thats great in concept, but keep in mind they’re already taking customers that likely have small or limited budgets. Where does this extra buffer come from? The only income stream is delivering on limited contracts to cash strapped NGOs and non-profits. Remember, they took corporate work at one point, but hated it. Corporate work is where the bigger bill rates for delivery of contract service come from.
An even simpler answer could be that the co-op chooses to take on a large number of small contracts instead of a small number of large ones, such that the revenue is relatively consistent to begin with.
Its amazing if your org can get so much contract work that there’s jobs available to turn down. This usually requires a dedicated sales and marketing staff, which don’t generate any revenue for the co-op, only delivery of services to. So the sales and marketing arm are yet another drain on the already meager amounts earned from contract awards.
If there was surplus money to be made large for-profit contracting companies would be in here already doing some or all of this work.
I appreciate alternate methods of business, but some of your statements here are worrying.
but you also said earlier…
Furlough sounds like another name for layoff here.
Ideally sounds like wishful thinking. They’re already limiting their work because they only work with NGOs or non-profits, which are usually cash strapped. Further, the lower pay to tech workers mean that the workers have less of a financial cushion should the work dry up for a time. This goes back to my first post that tech workers that don’t live a country with strong social safety nets may find tech co-ops a risky employer.
Yeah yeah fuck the rich, but billionaires are a small fraction of the owners of IT consulting companies. The majority of them are small boutique firms rather than giant fortune 500 companies.