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Most companies are 'paying too much' for IT contractors
Posted Mar 18, 2009
Research from IT consultancy Morse suggests that most IT directors feel they are paying too much for their IT contractors, and that 'flexible resourcing' could provide a cost-effective alternative.
Interestingly, most of the 200 IT directors who took part in the survey (over 70%) said they use IT contractors when they have skills shortages, as the economic downturn has limited the ability of many firms to recruit full-time staff.
Flexible resourcing
Morse suggests that, in order to cost-effectively access skills, many businesses have started to investigate the benefits of 'flexible resourcing' as an alternative to hiring IT contractors.
Flexible resourcing is essentially a managed service, whereby companies outsource their IT requirements to a third party provider.
The logic is that, via this method, companies can have access to the right skills at the right time and for the desired project length without being tied into inflexible contracts.
Theoretically, IT departments can then become smarter at paying for skills and create teams of IT professionals on a cost-effective basis, without expensive tie-ins.
Mike Devlin, director at Morse, commented:
"Employing contractors can enable organisations to fill skills gaps quickly, but on the other hand it can make the IT department less flexible and unable to respond to the changing needs of the business.
"Organisations now have to pay a premium for their skills and experience. Unfortunately, this expense comes at a time when many businesses need to make the most of every penny."
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