Public sector organisations are paying more than twice the going rate for IT staff because they are hiring people through long supply chains, an IT recruitment specialist said this week.
Outsourcing providers are charging user companies up to £2,000 a day for IT contractors who could be sourced directly for £700 a day, said ReThink Recruitment.
"The outsourcing provider sitting at the top of the contractual chain may have several tiers of suppliers feeding skills into it. As these skills are pushed up the chain, each supplier adds a mark-up," said ReThink managing director Jon Butterfield.
Research by ReThink found that public sector bodies were paying outsourcing providers about £1,500 for project managers, £1,200 for business analysts, and between £1,500 and £2,000 for IT directors - more than twice the cost of hiring these staff directly.
Butterfield said that public sector organisations could significantly reduce their costs by shortening the contractual chain when recruiting temporary IT staff.
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