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| people3 and Mercer Say Use of IT Contractors Expected to Rebound With the Economy |
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BRIDGEWATER, N.J., June 20, 2002 -- While the use of IT contractors dipped in 2001 as a result of tighter budgets and deferred or discontinued IT projects, the trend is expected to reverse with the rebounding economy, according to the 2001 IT Contractor Compensation Survey, a new survey by people3, Inc., a Gartner Inc. (NYSE: IT and ITB) company, and Mercer Human Resource Consulting.
In November 2001, people3 and Mercer Human Resource Consulting surveyed 36 organizations using a comprehensive questionnaire to find out how companies use IT contractors. The surveyed organizations collectively employ more than 6,200 IT contractors. According to the survey, 47 percent of companies reduced their use of IT contractors between November 2000 and October 2001. During the same time period, 31 percent increased their reliance on contractors and 22 percent made no changes. However, for the 12 months following November 2001, 36 percent of the companies expected to increase their use of IT contractors, 33 percent anticipated a decrease, and 31 percent projected no change. "In most organizations today, IT staffs include a blend of full-time, permanent employees working alongside contract employees," said David Van De Voort, leader of the Global IT Workforce Effectiveness group for Mercer Human Resource Consulting. "This provides flexibility and gives organizations a competitive edge in matching IT skills and resources to their ever-changing needs. We see no signs that this trend is abating." "While IT contractors are extremely valuable in filling fluctuations in the workload of the IT organization, prolonged use of them may indicate ineffective resource planning and management," said Diane Berry, vice president of research at people3. A regression analysis from the 2001 IT Contractor Compensation Survey shows that a number of combined factors influence the determination of contractor rates. Skill proficiency level is the single, biggest influence on contractor rates. Companies pay significantly higher rates for contractors with advanced levels of proficiency. Individual skills (e.g., Java) do not have a significant influence on contractor rates. Instead, generic skill categories (e.g., programming languages) tend to impact the actual rates paid. Contractors with networking and enterprise resource planning (ERP) skills are, on average, paid higher rates. The survey also examined compensation levels for 31 jobs grouped into six IT functional areas. The actual hourly rates for contractors were compared with annual base salary and annual total cash compensation for permanent, full-time employees. According to the survey, an outside contractor typically is paid two to three times more than a full-time IT employee in the same position. For example, the average contract rate for an applications systems analyst/programmer is 274 percent of the rate for a full-time employee in this same position. The 2001 IT Contractor Compensation Survey is available for purchase by contacting people3 at contractorsurvey@gartner.com or by calling +1.888.736.7533. About people3, Inc.
people3, Inc., the world's leading authority on IT human capital, provides "people solutions" for IT organizations. Supported by seasoned human resources and IT consultants who understand the unique languages and issues of both the HR and IT communities, people3 helps its clients maximize the value of their most important investment, their people. Along with its custom consulting services, people3 also delivers solutions through a cross-functional workforce management software tool called peoplepower, and compensation surveys that focus solely on the IT industry. people3, a Gartner company, is headquartered in Bridgewater, N.J. For more information on people3, visit www.people3.com.
About Mercer Human Resource Consulting
Mercer Human Resource Consulting is a global firm that helps organizations create business value through their people. With more than 13,000 employees in some 40 countries and territories serving clients worldwide, the company is a consulting unit of Marsh & McLennan Companies, Inc., which lists its stock (ticker symbol: MMC) on the New York, Chicago, Pacific, and London stock exchanges.
About Gartner, Inc.
Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions are Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Conn. and has 4,300 associates, including 1,200 research analysts and consultants, in more than 90 locations worldwide. The company achieved fiscal 2001 revenue of $952 million. For more information, visit www.gartner.com.
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Contact: Jamie McCleary 908-243-3526 benjamin.mccleary@gartner.com |
Contact: Ann Egan 816-556-4811 ann.egan@mercer.com |
