More than half of UK organisations believe they are paying too
much for IT contractors, according to research by business and IT
consultancy firm
Morse.
Some 52.5% of 200 IT directors surveyed said they are paying a
premium to contractors to access the specific skills and experience
they need.
Prices have increased with demand from IT departments forced to
cut permanent staff in the
economic downturn, said Mike Devlin, director at Morse.
Most UK organisations have become increasingly dependent on
contractors to meet skills gaps, with 71% of those surveyed using
the strategy.
This typically results in contractor lock in because they are
the only ones with knowledge of a specific part of the business,
said Devlin.
These commitments are sapping budgets and causing IT departments
to become less flexible and able to respond to the changing needs
of the business, he said.
Some 72% of survey respondents said not having the resources for
the right skills was preventing the IT department from taking on
projects that would help the business.
"The research shows the difficulties many UK organisations have
in balancing their IT and business needs," said Devlin.
The economic downturn is forcing IT managers to reassess the way
they source the skills they need, he said.
According to Morse, outsourcing to a third-party managed service
provider will free IT departments from contractor lock-in and
enable a more co-ordinated approach.
Organisations can build a more strategic relationship with a
single service provider rather than multiple contractors seeking to
entrench their positions, said Devlin.
Through managed service providers, organisations can access the
right skills for the right periods of time without the constraints
of fixed contract terms, he said.