Many IT contractors have had a sense of security in the midst of the global economic crisis. For the most part their jobs seemed to be secure. Now as the economy is entering into a recession, IT contractors are beginning to feel the pain. Since the economy has tightened, IT departments are trimming as much fat as possible from their staff. There are fewer staff being hired on a temporary basis too.
While a significant number of IT employees are finding their jobs eliminated, IT contractors who typically earn higher salaries are also noticing that opportunities are growing scarce. Now ING, a Dutch bank, has said that they will be cutting around 7,000 positions which will allow them to save around one billion pounds. Of the cuts that ING is expected to make, only around 35 per cent of them are expected to come from full-time staff. The remainder of the jobs will most likely be held by contractors or consultants.
No specific figure was given for how many contractor jobs are likely to be shed. A spokesperson for the bank did say “We are critically looking at our IT projects, to determine which are the most urgent and where we can save costs. For IT vendors we will, where possible, renegotiate contracts in terms of fees paid per hour.”
One other large company that is expected to reduce the number of IT contractors that it employs is Microsoft. The software company would not provide specific numbers but did say that more contractors would be cut compared to full-time employees.