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Capgemini IT contractors the latest to take rate cut hit

Published on Feb 8, 2009 | | Contract Rate Checker

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Capgemini is the latest firm to tell its contractors to take a 15% rate cut or face the chop - this will affect contractors on its 'Aspire' contract with HMRC.

According to an article in The Register, the initial source for so much rate cutting announcements of late, 'Aspire' contractors were sent an email in late January in which they were asked to swallow a daily/hourly rate cut which 'reflects current market conditions'.

According to the report, all contractors on the project were expected to have complied with the request by 30th January, with the new rates scheduled to come into effect from 2nd March.

The rate change, which is thought to affect around 200 contractors, is just the latest in a series of high profile rate cuts which have been announced over the past few months as the recession takes hold.

This latest blow to contractors follows on from moves by HBOS, Barclays Capital, Merill Lynch, Barclays, Nomura, JP Morgan and many others over the past year.

According to the latest SSL IT jobs survey, the demand for IT contractors is down by around 25% in all regions of the UK, with financial services contractors particularly hardly hit, followed by a heavy decline in retail contract roles. Demand for project managers and business analysts are both down over 30%.