Category: Contractor Industry News

A leading industry organisation has warned the government about the effect that cutting IT spending could have on IT contractors.

The Recruitment and Employment Confederation (REC) has highlighted the fact that the announced £6.2 billion in public sector savings, which includes a reduction on spending on IT, will set back the progress of a number of key projects.

Jeff Brooks, chair of the group's technology division, has warned that this is an area where cuts cannot be conducted indiscriminately.

"If we start randomly dropping IT projects now, that could act to add costs rather than eliminate them in the long run," he explained.

IT contactors looking for work at the local level could be particularly hit by these cuts, he added, as local authorities will be required to find their own savings, which could include a number of key schemes.

However, IT contractors may be able to benefit from a resurgence in the private sector, as e-skills UK chief executive Karen Price has highlighted the fact that highly-qualified staff remain in high demand.

Posted by Sarah Putt