IT bosses cutting back on contractors

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IT bosses cutting back on contractors

Posted Apr 16, 2008

A recent poll suggests that the "credit crunch" has made IT contractors a less attractive option than permies, as IT chiefs are forced to reign back on spending.

The majority of silicon.com's CIO Jury panel of IT chiefs said they are planning to reduce spending on contractors. This is unsurprising, as IT contractors are usually the first target when costs are cut during lean economic times.

Over half of the 12-person panel who took part in the survey are planning to replace external contractors with permanent staff to ensure that projects are unaffected.

Not all members of the panel planned to axe IT contractors in the near future - Allan Paterson, director of the IS division for the Isle of Man government, told silicon:

"We have no intention of reducing our spending in this area - we see external contractors as a key complementary resource to our in-house headcount, allowing us to both fill key competences that we don't have or that we are gradually bringing on-board, and to cope with variable demand for services."

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