IT changes could work for contractors

It alterations could be good for contractors.

The proposed renegotiations of IT contracts could help to create work for people using umbrella companies, according to an expert, who said that outsourcing could create more contracts.

Michael Dean, head of marketing at the National Computing Centre, said that there could be a "significant" impact on the IT outsourcing industry if renegotiations begin and existing contracts are changed.

"If the government take a hard line approach through either non-renewal or renegotiation outsourcers will be forced to find alternative revenue streams in a market which, according to recent reports, is in decline," he stated.

The expert added that a lot of outsourcing does go abroad, however he added that there will still be a positive effect on workers in the UK.

In other news, the independent technology analyst Ovum warned recently that a total of 35 major government IT outsourcing contracts are potentially at risk of renegotiation in the coming years.