US
It’s been a pretty torrid year for financial IT contractors, who have faced compulsory rate cuts of up to 15%, shrinking opportunities and increasing anxiety over job security. However, it seems their ‘cost flexibility’ could work to their advantage in 2009.
When State Street announced plans to scale back its $1.3bn tech budget for next year, it said it would look to take on more contractors, due to their “flexibility in expenses management”. Similarly, Man Group says it plans to use contractors for projects going into 2009.
Obviously, two firms doesn’t make a trend, but with shrinking technology budgets, and increasing difficulty securing permanent headcount, could contractors be used more going forward?
Ann Swain, chief executive of the Association of Technology Staffing Companies (ATSCo), thinks so: “It makes perfect sense to use contractors in the current climate. There’s no reason why contractors should cost more than permanent staff, particularly when you incorporate benefits and training. However, if you don’t pay them enough, skilled contractors will look to other sectors.”
She says the allure of working in the City was always the fact you could make more cash. However, with rates shrinking and job security diminishing, the financial sector could face an IT contractor exodus.
A report by TowerGroup suggests that while IT spending in UK state bailout banks may cease, those not under government supervision might suddenly find the riskier markets lacking in competition. This could spur a rush of short-term tactical market opportunities, and supporting IT projects, which will provide more openings for contractors.
Simon Walker, director of IT recruiters Project Partners, reckons he’s seen an influx of contractor positions recently and expects this to continue.
“Firms are still rolling out projects that are putting strain on the existing workforce. However, there’s no way they can get sign-off for a permanent head in the current climate. Contractors’ flexibility makes them the ideal solution. We’ve actually seen roles that were previously permanent change to contractor positions in the past couple of months,” he says.
There aren’t any jobs out there, get real, it’s bad, very bad.
it’s bad alright. i’ve been offered a couple of jobs since being sacked by HBOS in june. Both projects, and my contracts, have been pulled because of budget.
Well I’m attending my 1st interview since July, yes 1st interview tomorrow, it’s not in finance, and it’s not well paid.
To be fair to the comments i work in the recruitment field and we are still palcing alot of people. All thats happening is he very good people are getting the jobs. unfrotunantly the people complaining are probally not that good. So stop complaing and look at what you are doing wrong in not getting that role. Now more than ever interview skills and personality will win roles. Not the moaning and the whining these guys are doing. get a grip and sort it out otherwise you will be left on the shelf.
K1 can’t you spell !!
typical recruitment spiv !
How do you complain and whinge on a CV? What stops us IT Pro’s getting jobs is know nothing recruitment consultants, after all you wouldn’t expect a bank to contract someone who was useless for over 10 years would you?
To be fair to the comments i(I) work in the recruitment field and we are still palcing (placing) alot (a lot) of people. All thats (that’s) happening is he (the) very good people are getting the jobs. unfrotunantly (Unfortunately) the people complaining are probally (probably) not that good. So stop complaing (complaining) and look at what you are doing wrong in not getting that role. Now more than ever interview skills and personality will win roles. Not the moaning and the whining these guys are doing. get (Get) a grip and sort it out otherwise you will be left on the shelf.
You see what we are up against, the illiterate. Just the 9 errors then.
Scoops shouldn’t you be revising for your interview tomorrow?
Can’t afford to mess this one up in this market now can we!?!
To Mr Rough Driver; Your comments go along way to show why you dont have a job and probally wont have one. You are the kind of person along with this scoops character, that we as recruitment professional dont like to deal with. So please to both of you spend more time and effort in finding work instead of messing around on these sites. Oh and next time you try to be smart think about this, I am working you are not.
Sigh, it was today, a dead give away is the bit “Well I’m attending my 1st interview since July, yes 1st interview tomorrow” posted yesterday.
Ah, well I’ll console myself with the fact that I at least I have more than a rudimentary grasp of the English language, next time you try (and of course fail) to be smart, think on this, when I am working I earn about 4 times as much as you and as such can afford a bit of down time.
Fair enough, didn’t read the ‘posted yesterday’ bit.
But you probably didn’t get it anyway.
What do you do anyway? What are your skills?
My local pub is looking for a glass collector.
“when I am working (wow, might want to slow down there mate and not get ahead of yourself ;-)) I earn about 4 times as much as you”…
LOL – I highly doubt that. You should maybe do some research into how much top (as I am) rec consultants get paid. Put it this way, I do not place many contractors (and I only work with inv banks, IT) that earn more than me per year. I also have company cars, holidays etc all expenses paid.
In fact, I am looking for some trainees if you are interested?
the lack of jobs are in non-dev roles right? or are C#/Java roles hard to come by too?
K1, maybe you could use part of the money, holidays, etc… to refresh your grammar: do you talk the same way as you write? (you are joking aren’t you?)