According to new figures obtained by the LATimes, the number of contractors in Iraq has ballooned to 180,000 civilians (at the very low end, given that many firms weren't counted in this survey). Employees of private firms now, for the first time in a major conflict, outnumber uniformed forces (160,000) in the country. This is an important milestone, particularly since most of the functions that are most important to counter-insurgency don't involve pulling triggers.
This trend towards privatization will not be reversed despite the desire by many to return to 20th century legacy force structures. Instead, the trend will continue to accelerate as the threat of disorder (accelerated by global guerrillas) begins to dwarf state vs. state conflict -- the last refuge of the uniformed military.
Unfortunately, the trend towards the privatization of warfare (a long tail force structure) has radically outpaced the ability of the military to slave these firms into a cohesive whole. Instead, this private sector effort operates as a chaotic mix of bureaucratic networks and byzantine process structures (to wit: there isn't enough insight into the use of private contractors in Iraq to generate a complete list of firms operating there). Given the importance of private contractors to any effort against disorder generated by global guerrillas, it would be fair to conclude that at a deep systemic level, the effort in Iraq never had a chance. From the start: decision loops were broken, coherence was absent, adaptation was slow, and innovation was turgid (turgid, in the sense that it was grossly distorted to focus on the wrong things).
The only way to correct this fundamental problem, is to implement a solution I proposed at the end of Brave New War: platforms (see the book for background). In short, experience with platforms (usually with a layer of information technology as a fundamental building block) across a wide variety of complex situations (most successful global firms are transitioning to them, as evidenced by a Harvard Business School study I conducted a couple of years ago) shows that they could work in this area too since they grow efficient business ecosystems, establish coherence, supercharge innovation, and provide substantial improvements in flexibility/adaptability.
So far, the effort to create platforms that will do this have been stillborn (due to top down efforts from large, innovation free companies). The only hope is that organic efforts will emerge that rapidly propagate under the cover of stealth.