Cuts ''did not lead to IT contractors being out of work''

The recession has not led to more IT contractors being out of work, it has been suggested.

Companies are increasingly seeing IT as too crucial a department to make cuts in, which could be good news for umbrella company users.

Gerry McLaughlin, speaking on behalf of ITContractor.com, claimed that there has been a "sea change" in the industry that has seen it survive the downturn relatively unscathed.

"This time round, IT was seen as both a cost-cutting enabler and as too crucial to the business," he explained.

He stated that access to business information has been considered a priority, with firms trying to avoid leaving the recession a step behind their competitors.

Even the banking sector kept its IT contractors on, albeit at a reduced rate, Mr McLaughlin explained.

He said that this is great news for contractors in the industry, as it has removed a strong element of the risk that they faced.

A recent e-skills UK paper also found that the ICT sector is in comparatively good health, experiencing above-average levels of business confidence.