Author: Beverley Head
Date: Tuesday, 16 November 2010 05:25
Appeared In: ITWire - www.itwire.com

It’s been a rough year for Canberra’s ICT contractors – but it looks as though the market’s on the move with figures tracking contractor demand reaching a three year high in July. Government departments however may find themselves forced to offer more to lure back to Canberra contractors bruised and battered by the Gershon reforms.

The Peoplebank Intermedium Federal ICT Labour Hire Index tracks skills demand by measuring the cost of an average unit of labour hire paid by the Federal Government to ICT contractors. In April that index reached an all-time low of 763.

Date: Nov 16, 2010
Appeared In: Voice and Data - www.voiceanddata.com.au

The Peoplebank Intermedium Federal ICT Labour Hire Index for the three months to June 30 has tracked a continued decline in the government’s reliance on ICT contractors in the ACT market, as well as surprising spikes in demand. While the index shows that the ACT market has had its toughest half-year on record, weakening demand has been cushioned in the last quarter by seasonal contract renewals, as well as a rapid surge prior to the Federal Election being called.

The Labour Hire Index, which measures the cost of an average unit of labour hire paid by the federal government to ICT contractors, reached an all-time low of 763 points in April 2010. Peoplebank observes that market sentiment at the time was strongly influenced by the looming 30 June benchmark (the date on which federal government departments were measured on their progress towards the Gershon Review’s intended reduction in ICT contractor reliance).

As at June 2010, the Index stood at 1,316, a 141 point increase in the six months since the December 2009 figure (1,175) and an increase of 12.2% over the half year.

This increase is almost entirely due to a seasonal increase in June, as agencies initiate renewals of longer term (6 months +) contracts.

The June 2010 Index movement is markedly similar to that indicated by the June 2009 Index, which – despite post-Gershon Report moves to reduce the Federal Government’s reliance on ICT contractors – also rose 20% over the preceding six months.