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Large US firms doubled their use of IT contractors over the last four years, according to a new study by Computer Economics. The California-based researcher said that the number of contract IT staff leapt from 5 percent of their workforce in 2004 to 10 per cent last year. The research, based on the views of 200 IT leaders, was conducted among businesses each with annual turnover of more than $750million. It shows how their use of contract IT staff has changed since 2004, and examines how an aggressive use of such workers relates to staff growth and turnover rates. However among most small to mid-sized firms that were recruiting technology staff over the same four-year period, the use of IT contractors was relatively steady. “Companies tend to hire more contract workers during the start of growth cycle, particularly if they are worried about the sustainability of the growth, as has been the case,” said John Longwell, director of research at Computer Economics. “Smaller firms may be more likely to turn to outsourcing rather than contractor workers to meet growth needs.” Longwell said that while there are some factors favouring a long-term spike in the “contingency workforce”, the trend could reverse itself, as he said contract workers are among the first to go in a slowdown May 2, 2008 Email this article Printer friendly page Previous Page
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