IT Contractor Rate Reductions

[Metroarea]

Why the hell does everyone decide to do this at the same time? I'm sure they're in cahoots.

Last time it was the Banks - this time IBM, Camelot, Morse and counting in the last 24hrs.

[edb49]

What level of reductions?

[Romanymagic]

We've (in my profession of IT recruiter) have realised some of our asset manager clients asking for reductions between 10% and 20%.

Otherwise its been pretty tame (so far), no rate increases but contractor's being renewed beyond the 31st December, with either 3 or 6 month renewals. Two weeks ago that scenario did not look likely, so those renewals taking place has been quite a positive indicator.

[Metroarea]

edb49 said:

What level of reductions?

IBM did 10% across what they call ITD in the last few months. Then yesteday they rolled out a new initiative to cut contractor costs by 20% by the New Year. They know they cant lose 20% by just going after contractors so have opted to cut contractor rates and agency margins. Personally Ive had 5 contractor's rate's cut so far so not too bad, but they range from 5% to 15% drops depending on their starting position. I had another 10 hit last month and we're expecting more.

[jimothy]

They do it at the same time, because they can. Why pay above market rates when you can cut your costs, especially in the current climate. I've had 6% and actually see it as a pay rise of between 4% and 24% compared to my peers in other places.

[mmm-five]

I suppose I shouldn't say this and I'll probably be sorry tomorrow, but my rate went up by 10% less than 2 weeks ago when I was asked to extend my contract for a further 6 months.

[bp1]

Haven't noticed much in the way of reductions yet, no increases for sure. The benefit of not working directly in the IT departments I suppose, you slip under their radar. Do mostly BI type work direct in user areas. Ahh the joys of trying to explain development lifecycles, testing, star schemas etc. to the technically unwashed.

Generally have a massive rant at the world in the car after work each day.

Helps relieve the stress before I get home to the wife and kids