Reply to: Cap Gemini (Aspire) / HMRC rate cut

[Billy Pilgrim]

This one has reared its ugly head again.

I'm in the middle of negotiating a SMALL rate cut in exchange for a contract extension - which seems to have kept the agency happy too

I'll also make sure that the client knows that I'll spend less time travelling to client site(s) and work from home more often - I'll be no worse off hopefully

[oracleslave]

Financed based but not a bank

Not who I was thinking then

[bobspud]

I have a feeling I know who this is. Give us a clue.

Financed based but not a bank

[oracleslave]

Not as much as putting themselves on the bench. a company I know of are reducing their contractors from 58% of the workforce to under 25%. Looking at outsourcing and setting an upper limit of 275 per day for anyone lucky enough to still have a job... I'm told its announced but I'm still withholding the name in case there's a come back ...

I have a feeling I know who this is. Give us a clue.

[bobspud]

EDS?

Can't give the name out but no for a change its not them

[Flashman]

Not as much as putting themselves on the bench. a company I know of are reducing their contractors from 58% of the workforce to under 25%. Looking at outsourcing and setting an upper limit of 275 per day for anyone lucky enough to still have a job... I'm told its announced but I'm still withholding the name in case there's a come back ...

EDS?

[Grinder]

My perspective is that all my projects were cut before Christmas, so PM no longer needed. My client kept the technicians to maintain BAU. I am now entirely recumbent, wondering where all the jobs are hanging out.

I think its naive to think if no one takes a cut there wont be one. Companies are being hit hard - if they don't save money they will fail. I've heard of one company in my sector cutting rates by 20%, and rumours of another going to 4 day week (ie basically a 20% cut). Where I was, they just canned anything 'strategic', quoting a target of 25-50% cuts in IT.

The recession may not affect public sector as much (in fact the planned increase in government investment may improve things!), but rates across the IT industry will be affected.

Having said that, I applied for an Aspire role - offering to work for less due to not having worked within public sector (in fact my primary reason is because I'm local to one of the sites). Of course they weren't interested

[PM-Junkie]

If no-one accepted a rate cut, then there would be no rate-cuts.

However, to call those that decide that the best thing to do is to take a cut "scumbags" is a bit far.

I don't think I'd accept, but that's just me - I'll find out in a few weeks how hard it is to find a job.

UK contractors

I suspect you are taking the mick. If you don't, then you clearly don't understand the first thing about how business operates these days.

[TheFaQQer]

If no-one accepted a rate cut, then there would be no rate-cuts.

However, to call those that decide that the best thing to do is to take a cut "scumbags" is a bit far.

I don't think I'd accept, but that's just me - I'll find out in a few weeks how hard it is to find a job.

[BolshieBastard]

Unfortunately some scum bags will accept the lower rates and this will affect others in the industry.

People arent 'scumbags' for having to accept a rate cut in the current market. You're talking tulip accusing people of that.

I walked at barclays when they introduced a rate cut of 20% back in 2001. I couldnt get another role for ******* months because the market started a downturn very soon after.

You may have a valid point about 'scumbags' when they severely undercut others at normal times but not in the current climate.

[bobspud]

Unfortunately some scum bags will accept the lower rates and this will affect others in the industry.

Not as much as putting themselves on the bench. a company I know of are reducing their contractors from 58% of the workforce to under 25%. Looking at outsourcing and setting an upper limit of 275 per day for anyone lucky enough to still have a job... I'm told its announced but I'm still withholding the name in case there's a come back ...

[Paddy]

HMCR have made the contract with Cap Gemini a long time before the recession and the payments from HMCR to Cap Gemini have not been reduced. It appears that Cap Gemini is trying to save money on this contract in order to offset losses on other contracts. Unfortunately some scum bags will accept the lower rates and this will affect others in the industry.

[bobspud]

I heard some very bad news through a closed source last night. (not hmrc related) But if the company in question goes through with the sort of figures that were used, then its going to make 15% look pretty good

[NickNick]

No doubt about it!

Actually we all must do that. In contracting, you are only worth what you can get. If we don't put our rates up in good times, who else will?

In that case we must be in good times as I've just upped my rate by 15%.

[expat]

I like this bit

"The current economic climate means that the market rates for contract resources has dropped due to the reduced demand for contractors"

So when the market picks up presumably they will be happy to up their rates then based on the increased demand for contractors

No doubt about it!

Actually we all must do that. In contracting, you are only worth what you can get. If we don't put our rates up in good times, who else will?