Jul
28
2010
IT renegotiations could have repercussions for contractors
The proposed renegotiations of IT contracts could have repercussions for people using umbrella companies, according to an expert, who said that outsourcing could create more work.
Michael Dean, head of marketing at the National Computing Centre, said that there could be a "significant" impact on the IT outsourcing industry if renegotiations are started on existing contracts.
"If the government take a hardline approach through either non-renewal or renegotiation outsourcers will be forced to find alternative revenue streams in a market which, according to recent reports, is in decline," he stated.
The expert added that although a lot of outsourcing does go abroad there will still be a significant impact on workers in the UK.
Independent technology analyst Ovum warned recently that a total of 35 major government IT outsourcing contracts are potentially at risk of renegotiation in the coming years.
Michael Dean, head of marketing at the National Computing Centre, said that there could be a "significant" impact on the IT outsourcing industry if renegotiations are started on existing contracts.
"If the government take a hardline approach through either non-renewal or renegotiation outsourcers will be forced to find alternative revenue streams in a market which, according to recent reports, is in decline," he stated.
The expert added that although a lot of outsourcing does go abroad there will still be a significant impact on workers in the UK.
Independent technology analyst Ovum warned recently that a total of 35 major government IT outsourcing contracts are potentially at risk of renegotiation in the coming years.