Umbrella Companies | Public sector turns to freelancers to complete IT projects

Public sector turns to freelancers to complete IT projects

After cutting 132,000 jobs in 2010, the public sector is now turning to freelancers to fill the gaps, according to a recent study by PeoplePerHour.com.

A significant amount of these public sector projects are for umbrella contractors with digital skills. The private sector was quick to utilise the services of freelancers during the recession, but the public sector has only recently started following suit.

PeoplePerHour.com reports that invoicing for digital projects this year is seven times higher than it was last and the total number of postings for digital jobs has increased by 315% in the past 12 months.

Digital sector consultants in the North West saw a year-on-year increase of more than 300% in their wages in the first quarter of this year. In the UK as a whole, the increase was 200%. Freelancers with skills in web design and programming have seen their earnings potential increase by 178%, whilst e-commerce experts could command 216% more than they did this time last year.

There’s good news for women IT contractors as well. Women gained a five out of five ranking for their quality of work and the North witnessed a 1000% increase in the number of females entering the IT market.

Xenios Thrasyvoulou, the founder of PeoplePerHour.com, explained that IT, accountancy and law account for more than 20% of economic output and over 11% of employment in the UK. The earnings figures show that the North West is at the centre of both innovation and economic growth for the rest of the country.

The IT industry doesn’t just support growth in other sectors, it underpins and supports technological innovation, an essential element if we are to sustain long term growth, he added.

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