Contracting is Expanding: Is Contracting the New Reality?

Discussion in 'Scotland' started by Enigma People, Nov 19, 2013.

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  1. Enigma People

    Enigma People UKBF Newcomer Free Member

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    Our recent blog ‘Contracting: The Excitement and the Dark Cloud Above it’ talked about the rise of contracting across the IT industry. With technology changing so rapidly the trend towards contracting means more and more businesses are bringing in short term contractors to solve their recruiting needs.

    In the past year Enigma has doubled the number of contractors placed with client’s right across the IT Industry. It’s evident that there is a rising demand. It’s interesting to see that clients require us to source contractors for roles right across their businesses, from first line support engineers to project managers and highly skilled specialist roles.

    It’s also interesting to see that the demand is growing right across all markets. We’ve recently placed contractors in a number of local and international software companies and electronic engineering companies as well as fixed term contractors at the likes of the Scottish Football Association and the NHS. The range of clients looking for contractors is quite remarkable. In the Electronics market particularly, contracting has been popular due to the lack of skilled local talent and the immigration constraints on international talent. As a result, demand for contract Software and Electronic engineers has been significant.

    As a short term fix offering flexibility and diversity for all those involved, contracting is great. For businesses whose long term growth may be unclear but whose immediate project requirements are, contracting allows them to bring in skilled staff, get the job done and then allow them to move on. The companies don’t need to spend time or money sourcing and training staff, and can focus their efforts elsewhere in the business. It allows them to very easily bring in specialist skills they may otherwise not have access to, cover workload in case of holidays or sickness or just temporarily increase manpower for a specific project. Clients and contractors have the added flexibility of various contract types to find their perfect fit – hourly paid, day rate and fixed term.

    Whilst we may take the trend of increase in contracting opportunities as a welcome and clear sign of the growth in the sector and the economy in general we are unclear whether this is also evidence that businesses remain uncertain about hiring long term due to uncertainty of how their businesses will grow and what their recruitment needs will be. Or, is this the new reality? Will businesses favour, as many have predicted, a much more fluid work place. Will technology professionals no longer nail their colours to one mast in favour of a more portfolio/project related existence?

    Whilst Enigma continues to source and provide clients with the specialist skills they require, for whatever length of time they require it for, I still believe we as an economy need employers to place an emphasis on long term hiring, investing and retaining employees. There is no doubt that the Technology industry in the UK is growing rapidly, last week the Chartered Institute for IT reported that the industry grew by double the rate of the economy as a whole. The sector’s Gross Value Added (GVA) is now £72bn, 5% of the UK total. With such high growth rates will faith be restored in the economy, and will business account for this in their long term recruiting?

    Are employers now paying the price for being unable to invest in technologists sufficiently over the past 15 but especially past 5 years? Clearly for some skill sets there are not enough candidates to go round so some companies are being forced to resort to contractors to get work done!

    Let me know what you think – will contracting be the way forward or does long term hiring still have its place?

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    Posted: Nov 19, 2013 By: Enigma People Member since: Nov 19, 2013
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