Kovasys Inc.

February 26, 2009 19:04 ET

Economic Downturn Sends IT Companies Searching for Contract Workers

With the economy causing massive layoffs in almost every industry, IT companies are looking for most cost-effective ways to maintain the staff their projects need.

Attention: Business/Financial Editor, Lifestyle Editor, News Editor, Science Editor, Tech/Telecomm Editor MONTREAL,QUEBEC,IT--(Marketwire - Feb. 26, 2009) - The global economic downturn has hit almost every industry hard. Unemployment rates are skyrocketing. In Canada, the number of people applying for financial assistance has risen by more than 16% since December 2007. The IT industry has definitely not been immune to these losses. However, companies and departments still need to complete their technology projects and therefore looking for a new solution.

According to Kovasys Inc., an IT recruitment firm in Montreal, the solution that company are turning to recently is contract labour. Choosing to hire contract workers for IT projects has a number of advantages that are particularly appealing during tougher economic times. First, the worker is not part of the full-time staff so benefits and taxes do not need to be paid on his or her behalf. These are the responsibility of the worker and his or her temp agency. That can save companies money. Because of the cost savings, companies may be able to bring in more experienced and talented professionals than they would be able to afford to hire permanently. In addition, the company has the flexibility to increase or decrease their staff as needed without having to resort to lay-offs and down-sizing. Unemployment benefits and severance packages are also not required when a contract IT professional is no longer needed.

Clearly, IT companies can benefit from switching to contract labor, but they are not alone. IT workers who have been laid off from their jobs because of the downturn can benefit from contracts as well and use their experience to land contract positions which may pay more than their full-time position did. Contracting also provides more flexibility as they are not tied down to a single company.

Not surprisingly, contract workers can also be converted into permanent employees if needs change. IN: ECONOMY, FINANCE, LABOUR, SOCIAL, TECHNOLOGY

Contact Information

  • Alex Kovalenko, Kovasys Inc.
    Primary Phone: 514-907-3192 ext. 701
    Toll-Free: 888-568-2747
    E-mail: alex@kovasys.com