Crystal Umbrella

The CBI yesterday published data, which shows that spending in IT is likely to remain “broadly flat” over the next year. The CBI attributed this freeze in IT spending to the last quarter’s upturn falling short and the expectation that profits in the sector will level out over the next quarter.

Powerchex stated that there are fewer opportunities for financial IT contractors than any other contractors within the IT sector. Commenting on this news, Powerchex founder Alexandra Kelly said: “IT contractors are suffering because of a lack of new projects. When there are new projects, clients are starting to staff up the major ones with permanent IT workers. Many financial organisations are still delaying investment in support and functions [in] it.”

She continued: “There is now more willingness on the part of the contractors to go for the safer option of becoming employees which[ because of the economy] should not come as a surprise.”

Parity Resources’ Alan Rommel told Contractor UK that opportunities in the public sector had been “slower than usual to pick up”.

However, managing director of Hays IT stated that despite the focus on “cost efficiency” it is not all bad news for IT contractors. James Lloyd-Townshend stated: “[Organisations] are ultimately after professionals who can provide technical solutions in a structured and cost effective way, consequently this has led to sustained demand for architecture expertise…[and] has fuelled demand for business intelligence consultants [with] Sharepoint.”

Mr Lloyd Townshend also stated his belief  that opportunities would increase for IT contractors in the second half of 2010: “Initially we expect that senior interims will manage the majority of projects. We would then expect to see companies increasing their permanent headcount gradually as the market starts to pick up and confidence improves.”

The CBI stated yesterday that Britain is set for a complete reform of its business model and contractors are set to be at its heart. They have said that they expect companies to work with a small core team and enhance the skills within by employing freelance staff and consultants. These contracted staff will be essential to the overall running of the organisation, providing core skills and services, but will only be utilised when required.

This is also set to benefit the contractors themselves as they will be rewarded financially for their willingness to work in such a flexible manner, especially given the recent economic difficulties. Businesses are sure to recognise that contractors are not awarded the same job security as their permanent counterparts.

The CBI believe that these changes to the way our workforce operates will be as a direct result of the recession, which came as a shock and hit businesses hard, resulting in mass redundancies across all sectors. The recession has also highlighted the skills deficit within many staff teams. Businesses will be looking for these specific skills sets and, therefore, there will be a greater responsibility placed on contractors to make sure that they are taking advantage of all training opportunities. This will provide them with greater job opportunities.

The CBI commented: “Without the right skills and/or mentality will find it increasingly difficult to secure jobs – in some areas, long-term unemployment…will become a major problem.”

They concluded: “Others will prefer the security and stability of a permanent job, but those skilled individuals who are prepared to work flexibly will get higher rewards.”

CBI, the voice of business, are predicting that unemployment could reach 3 million in the UK by the middle of next year. It reached 2.4m in August. In a bid to tackle this issue, Microsoft have launched their ‘Britain Works’ campaign, born from the belief that “there’s only so much” that government ministers can do to support people who are unemployed.

This incentive aims to provide training and paid apprenticeships throughout the Microsoft network and has been given the seal of approval by the CBI. Financial backing is being provided to many of the smaller businesses within the Microsoft corporation to train 3,000 IT apprentices. The software giant has previously run a similar initiative which was based purely in the West Midlands. Based on the previous project, it is believed that the first IT apprentices (approximately 700) should be ready by September next year. Overall, up to 500,000 unemployed people could be helped by the programme.

Britain Works is a partnership initiative which will see Microsoft working alongside Job centre Plus. Opportunities will be available for jobseekers to take part in varying levels of IT training courses through the allocation of vouchers.

Former director-general of the CBI, Lord Jones, said: “There are thousands of people who do not have the appropriate skills that businesses need in today’s IT led economy. Businesses still need these people, and so a significant part of this campaign will focus on making ‘Skills for Business’ training vouchers available.”