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IT Contractors

Posted by By at 14 May, at 16 : 03 PM Print

Freeze

There is now a virtual freeze on IT Contractors being recruited in the Public Sector.

The reason for this is that they know that there are going to be major cuts in Budget coming.

The Tories have promised to take a huge axe to IT projects like the Identity Card scheme and the NHS project.

As they are likely to be the ruling party after the haggling is over Public Sector departments see no point in hiring extra contractors.

Renewals Refused

Indeed many contractors are now being refused renewals due to the uncertainty over what is going to happen to many of the Labour Government’s favoured projects.

There is steadily rising demand in the private sector now as the economy recovers but this is being offset by the drop in demand for public sector contractors.

Rates rose during the boom period for Public Sector IT projects.

Those contracts were traditionally at a lower rate than the private sector but they had mostly caught up during the boom period.

However, these are now expected to fall gradually but surely over the next few years.

Mixed Feelings

So, contractors have mixed feelings over the likely change of Government.

On one hand IR35 may be abolished and the Tories may be more small business friendly.

However, it is a surefire thing that they are going to remove thousands of jobs from the IT sector including contractors.

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