Crystal Umbrella

Contractors working in the public sector are already starting to feel the squeeze as spending cuts get underway. IT firms who supply the public sector have been advised they will need to cut their fees by 20%. This request was made at a meeting of all nineteen IT suppliers to the government. At present these firms charge the government in the region of £16 billion.

Francis Maude, cabinet officer minister, confirmed that this “marks the start of the process to renegotiate key government contracts” regarding “everything” that these businesses “do for the government” in a bid to cut costs.

The suppliers involve include such technology giants as BT, IBM, Fujitsu, HP and Serco. According to IT analysts TechMarketView the government will probably choose to curtail the extent or length of contracts rather than seek to cancel them altogether. The government’s CIO, John Suffolk, will be the man responsible for the contract renegotiations.

Mr Maude commented: “Given the really difficult economic climate we now face, we have to do everything we can to deliver better value for money for taxpayers and that involves taking some tough decisions. I am laying down the challenge to major government suppliers to ask them what they can do to take costs out of contracts. Some of this will come out of margins, but we will also invite ideas on how we can structure things differently to reduce complexity and cost.”

Action for Children is seeking 700 ‘techies’ to sleep on the streets for a night in order to experience “what it would feel like to be homeless”. Byte Night is an annual fundraiser involving IT staff and IT contractors. Senior executives from HP, BT and Dell have already asked their staff to join them on the outdoor sleep alongside IT recruiters and politicians. All IT companies, large and small, are requested to become involved. The sponsored sleep-outs will take place on October 2^nd in London, Manchester and Edinburgh.

The aim is to tackle the issue of homelessness among young people and the event has grown considerably since it was launched by 30 technical workers back in 1998. £470,000 was raised by the event last year and it is hoped that this year they can beat the recession and raise £500,000. Suggested sponsorship is £500-£2000 for an individual and £2,500-£5,000 for a team. This is a charity event but it is also likely to be a great networking opportunity for IT contractors and permanent staff alike.

Founder of the event, Ken Deeks, had this to say, “With the country engulfed in a recession, many have predicted this year will be a tough one for fundraising. However, when it comes to the tech industry, the appetite for charitable giving is higher than ever.”

Action for Children Director, Polly Neate added, “The event has allowed us to continue to provide safe and secure accommodation to vulnerable youngsters at risk of homelessness. The continued support from the tech industry is second to none.”