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IT staff and contractors - why they matter

IT salaries and contract rates in free fall

I've noticed IT salaries and rates for IT contractors are falling through the floor. Some organizations are even setting contract rates to match full time rates. This is a bad idea for many reasons. One is that it wil push a lot of contractors to simply take on full time roles and wait for the upturn while using the time in between for retraining. Then when the upturn happens, there will be a net migration out of senior full time positions at a time when full time staff have been trained.

It's a better idea to simply accept that contractors bring many skills to an organization and to pay accordingly. Trying to move everyone onto the pay roll wil just cost more in the long run, i.e., as soon as the demand for contract labour returns.

I guess the penny pinching will continue until the realization dawns that with IT as with everything else,you get what you pay for...

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