Two-Thirds of U.S. Companies Turn to IT Contractors to Overcome Talent Shortages and Improve Workforce Flexibility
Download the "IT Workforce Composition Across the Globe" infographic here: https://drive.google.com/file/d/0B4nS0l5HUQuJejZMY0dPVmlBUmM/view?usp=sharing
According to Experis, companies that cast a wide net - leveraging expertise among permanent, contract and freelance IT workers - will find their workforce better positioned to overcome talent shortages, improve business agility and flexibility, build an internal talent pipeline for the future and preserve organizational knowledge. Indications are, however, that many are still struggling to transition from a single-sourcing model, to a more dynamic, hybrid mix. The research shows this intransience can be a stumbling block for some as labor markets tighten with the improving economy.
"As employers continue to be challenged by fast-changing business cycles and growing talent shortages, many are exploring alternative work models to find the skills they need," said
Highlights from the research include:
- There is great variation across markets when it comes to in-country IT hiring practices:
Germany (63%),India (62%) andAustralia (58%) rely heavily on permanent employees, while theUK (30%),France /Italy (36%) and theU.S. (40%) take a more agile approach to workforce composition, balancing out their use of permanent employees with contractors. - Employers have a clear preference for more flexible workforce mixes when hiring for IT talent overseas compared to their hiring habits at home. One exception is
India , a large exporter of IT contracts, with a majority of employers (46%) relying solely on contractors when operating abroad. - The use of IT contractors is a growing trend, with 71% of employers across the globe currently tapping contract talent and an anticipated net increase of +13 in the future.
India andBrazil report the highest use of contract work (87% and 83%), while other countries such as theU.S. (66%),Japan (65%),Australia (59%) andGermany (40%) are slower to adapt to meet these changing needs. Companies in theU.S. plan to accelerate their use of contract work in the future, but the most contract growth will come from BRIC markets such asIndia ,China andBrazil .
There are many benefits to using contract work: contractors bring greater cost savings and more flexibility — two things that are increasingly important for businesses in the volatile IT environment. Experis urges that IT leaders rethink hiring strategies in order to strike a more effective balance between permanent and contingent solutions, better positioning their workforces to keep pace with the changing dynamics.
For more information on IT workforce composition and other industry best practices, visit: http://www.manpowergroup.us/campaigns/experis/it-workforce-composition/
About Experis
Experis™ is the global leader in professional resourcing and project-based solutions. Experis accelerates organizations' growth by attracting, assessing and placing specialized expertise in IT, Finance and Engineering to deliver in-demand talent for mission-critical positions and projects, enhancing the competitiveness of the organizations and people we serve. Experis is part of the
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