The sustained reduction in ICT spending over the past 24 months has resulted in the most significant reductions in ICT labour hire spending in over seven years.
The Peoplebank Intermedium Index, calculated on the number and value of ICT contracts, reveals the market has been in significant decline in the past 12 months.
This downward trend – which has seen the Index fall by more than a third from September 08 to May 09 – is likely to continue until 2010.
Key findings include:
- As at May 2009, the Index has fallen 54 percent since its 2007 peak, and also fell 35 percent since July 2008.
- There was a 63 percent decline in the value of ICT labour contracts in June quarter 2008-09, compared with the same quarter in 2007-08.
- The number of contracts reported has almost halved from 1,040 in the June quarter 2007-08 to 544 in the June quarter 2008-09.
- There has been an overall marked shift in contract engagements, with a reduction in the number of 12 month contracts being offered compared with three to six month contracts.
Overall, the Index provides further evidence Federal agencies are reducing their reliance on contract ICT labour. This was indicated in the 2009 Federal Budget, which shows continuing growth in permanent public service staff numbers over 2009-10, as well as ongoing recruitment campaigns by large agencies for skilled ICT staff. Click on the following links for: More information about the Index To download the August 2009 Index Media coverage of the Index Labour spend at seven-year low IT contractors suffer but hiring will rise