Is there an increasing demand for contractors? Your views...

[inniAccounts]

It's been an interesting few months here - we're not the only accountancy firm to have noticed that there's been a recent increase in the number of first time contractors. According to what our clients are telling us, it appears that there are two main reasons: firstly, supply has swollen due to redundancies across many sectors in the last 12 months and, secondly, demand is picking up as clientco's are resurrecting projects that were previously put on ice.

There's still nervousness around the economic outlook but there is a desire to ensure that companies are in the best possible position to take advantage of future growth. Many large corps are undertaking internal restructuring (inevitably leading to redundancies), but there also appears to be an upturn in PM recruitment (IT Jobs Watch shows it's up 30% versus last year). Hopefully this is a leading indicator and good news for benched contractors as companies look to resource projects whilst managing their risk.

That's what we've managed to piece together given our conversations with our clients and corporations - what do you think? Is your clientco restructuring and/or making permies redundant? What about contract hires? Are you seeing new investment in projects? How do you see 2010 panning out for contractors?


James

[cojak]

According to what our clients are telling us, it appears that there are two main reasons: firstly, supply has swollen due to redundancies across many sectors in the last 12 months

That's the one.

Forget about the second point, very little is going to change until after the election.

[kingshuk]

This is how it looks - http://www.jobstats.co.uk/images/cha...rge_smooth.png

There maybe positive blips in some markets (banks strangely) but it takes lot more QE before that graph moves up.

[inniAccounts]

Do you know how often the charts are updated? We're approaching the end of Q3 and they only go up to Dec, and given that's an odd month it's a 4 month lag...

[Spacecadet]

http://forums.contractoruk.com/gener...ing-picky.html

my views!

[kingshuk]

Do you know how often the charts are updated? We're approaching the end of Q3 and they only go up to Dec, and given that's an odd month it's a 4 month lag...

I know. Everytime I point someone to that chart who has already decided to be optimistic I am told - "But they are old charts! Things have changed in the last few months"

The point is after a fall like that a few months uptick hardly changes anything. To get back to the "old normal" takes a very long time. For example - FTSE 100 has gained about 62% since 2009 low. But its still about 32% below its 2007 "normal". Or Japan's GDP is still below what it was 15 years ago (http://www.google.com/publicdata?ds=...en&q=Japan+GDP)

Sorry to sound so glum but I am just not convinced with the recovery lot of people are seeing.

[inniAccounts]

Sure, there's no disputing it will take a *long* time to get back to 2007 levels of absolute demand, but what's your view on the next 12 months, say versus 2009? Do you think demand will remain flat or a slow increase as per 2003 onwards?

The chart also shows in the post dot-com world that contract demand grew at a greater rate than permies - which makes sense for a corporation looking to manage risk. This theory also maps well to the current conditions in the UK - especially with predictions of a double dip still rife plus uncertainty around post-election policy. Thoughts?

[nodric]

A Belgian Perspective

Europe tends to have a different dynamic than the UK, but for the record Belgium is picking up significantly, with a lot of new roles coming on stream every week. Rates took a battering 18 months ago, and have not yet reached pre Lehmans levels, but have improved by at least 100 Euros a day, making it almost a ton an hour for senior PM and top tech roles!

BNP Paribas, who took over the failed Fortis bank, are seeking to recruit 1500 contractors in the coming months for a variety of initiatives, all connected I’d assume with sorting out the mess Fortis left behind. Fortis used to have an IT workforce of over 5000 in Brussels alone, over 50% were contract staff! ING are also hiring for a range of projects, everything from Programme Managers, PMs and Tech roles, so at least banking is picking up again. Logical they'd be the first to recover. Hopefully other companies will now follow if the money is flowing again!

However, the (can’t tell you for obvious reasons ClientCo) I’m with at the moment plans to savagely cut contractors by 90% of current levels Following some pilots, they will now achieve this by offshoring all their development and related roles. Land of the best curries is the beneficiary. They also intend to reduce their permy workforce by a significant chunk. Cost cutting being the primary reason, as profits were hammered in the last 2 years.

So it’s a mixed bag, but it seems the balance is on the positive side, and as many of these initiatives are short term, less than 3 years, the need for contractors is ever present. The even better news as demand is increasing, so will the rates

[Scrag Meister]

Just an observation from my area of business, back about 18 months ago, on a particular website I use, there were 8 roles that matched my skillset, currently there is 58.

Now I realise that there are duplicates and such like, but that doesn't account for a move from 8 -> 58.

IMHO things are picking up, there may be some fingers in the air from client/agents, but is a +ve thing.

[ChimpMaster]

I've certainly noticed a pickup in activity since around Feb this year. Rates haven't gone up - yet, but hopefully that will follow.

In my skillset I would also say that Europe is the main leader in new contracts - Belgium, Switzerland, and France even. A couple in the UK but this country appears to be shafted when compared to much of Europe.