Kovasys Inc.

March 11, 2009 00:15 ET

IT companies draw escape plan from economic crisis

With downturn, IT companies are looking for ways to maintain the staff their projects require by hiring more IT contractors.

Attention: Business/Financial Editor, News Editor, Tech/Telecomm Editor CANADA/TECHNOLOGY/CONTRACT/WORK--(Marketwire - March 11, 2009) - The downturn has hit every industry hard and companies had to layoff thousands of employees to make ends meet. The IT industry has not been immune to these losses with Microsoft and Intel laying off 5,000 employees each. However projects still need to be finished on time and IT companies are turning to skilled IT contractors to fill in the gaps.

According to Kovasys Inc. (http://www.kovasys.com), an IT recruitment firm in Montreal, the solution that most of IT companies are turning to in this economic recession is contract labour. Hiring IT contract workers 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, unemployment insurance, or holiday and vacation pay do not need to be paid on his or her behalf. These are the responsibility of the worker and his or her temp agency. Second, because of the cost savings and flexibility this creates, companies may be able to bring in more experienced and talented professionals thus providing companies with more hiring options. In addition, the company has the flexibility to increase or decrease their staff as needed without having to resort to layoffs and downsizing. Unemployment benefits and severance packages are also not required when a contract IT professional is no longer needed.

IT companies benefiting from switching to contract labor are not alone. IT professionals who have been recently laid off from their jobs can benefit from contracts as well by using their experience to land contract positions which usually pay more than full-time and provide them with more flexibility as they are not tied down to a single company. IN: ECONOMY, FINANCE, LABOUR, TECHNOLOGY, TELECOMM

Contact Information

  • Alex Kovalenko, Director of Operations, Kovasys Inc.
    Primary Phone: 514-907-3192 ext. 701