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Federal Government ICT Skills Market Slows

by Staff Writers •
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In the post-election environment when overall Federal Government ICT activity has slowed (while the Rudd Government completes more than 100 reviews of policies and processes), it’s not surprising the hiring of temporary and contract labour by agencies has also slowed.

Intermedium research shows the value of Federal Government ICT Labour Hire contracts declined significantly during the 2007-08 financial year, after several years of strong growth.

The market had grown by more than 15% between 2005-06 and 2006-07 in a period characterised by skill shortages and increasing contractor rates. By all accounts, these shortages remain, suggesting the Federal Government may well face resourcing issues as new programs are implemented, especially in early 2009.

However, the research also shows considerable variation between individual labour hire suppliers, in terms of the total value of their ICT contract value, but also in terms of the average value of those contracts.

Amongst the Top 25 labour hire suppliers, the average contract value ranges from $88,000 to more than $200,000.

Not surprisingly, the Tier 1 agencies (those spending more than $100m pa on ICT), were the ones that spent most on labour hire services in 2007-08. However, reflecting the progress on major ICT projects, there was considerable variation between agencies in their use of labour hire services, compared with previous years.

DIAC for example, was a heavy user of labour hire services during the peak activity on its Systems for People project, but as the project wound down, DIAC’s use of labour hire also declined in 2007-08.

Intermedium’s Labour Hire Report

Intermedium’s 2007-08 Labour Hire Report is a comprehensive summary of the Federal Government ICT market for the 2007-08 financial year. It contains information on ICT contractors employed on a time and material basis - 'bodyshopping'.

The report provides an authoritative view of the Federal Government labour hire market, and is a valuable source of information for suppliers and agencies, enabling them to:

  • Understand trends in the market
  • Identify areas of potential skill set demand or shortage
  • Monitor spending by agencies
  • Benchmark their activities and performance about other agencies and competitors

The 2007-08 Labour Hire report is available free with subscriptions to the 2008-09 Labour Hire Report that comprises quarterly reports, commencing with the Q1 report (July – September 2008) that will be published in early October.

For more information about Intermedium's analysis of the Federal ICT Labour Hire market, or about the Labour Hire Briefing, contact Fleur Bayley by email, or ring 02 9955 9896

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