US corporations ‘relying less’ on IT contractors

The use of contract IT workers by large organisations in the US dropped in 2014 following two years of impressive growth, according to Computer Economics.

Having surveyed about 200 corporations each with IT operating budgets above $20m, the American research firm found that contractors as a chunk of the IT workforce shrunk to 10%.

The same survey in 2013 shows that such temporary tech workers accounted for 15% of the IT workforce, versus 17% in 2012. In 2011, just 6% were on-contract, up from 5.5% in 2010.

Asked about the findings, John Longwell, vice president for research at Computer Economics, explained that the US’s improving economy had gone against contingent techies.

He said that like mid-size firms, large outfits “reduced dependence” on IT freelancers as a result of being more willing to hire on a full-time basis since the economy had strengthened.

But the downward trend isn’t universal. Another researcher, Staffing Industry Analysts, says use of IT contractors is growing, and they are set to account for a fifth of the US’s techies.

And the frontline seems to agree. IT recruiters at TEKsystems reportedly say the proportion of firms planning to hire more IT contractors has risen from 24% (in 2014) to 36% for 2015.

Editor's Note: Related Reading -

IT contractor demand in the US set to surge

US IT hiring 'broadening and deepening out'

IT contractors swamped by US opportunties

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Written by Laura Wilkinson

Laura is the Digital Marketing Manager for ContractorUK. She has worked at ContractorUK for over 7 years and is qualified with a Professional Diploma in Digital Marketing via The IDM.
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