Recession may have led to increased demand for contractors

Some companies have been able to make savings through outsourcing during the recession, an expert believes.

Enlisting the help of a contractor umbrella company may prove handy for some people, as the recession has led to a rise in businesses outsourcing certain operations.

Martyn Hart, chairman of the National Outsourcing Association, explained that this has proved an effective means of cutting costs for some firms.

He continued: "There has been a rise in outsourcing, as passing non-core activities to specialist providers is a proven way to reduce capital expenditure.

"So the upside is that there are more contracts available."

One of the problems that has been faced, however, is that suppliers have been challenged to reduce their costs, meaning the amount of deals has increased, but the average value has fallen, Mr Hart added.

It was recently suggested by chief executive officer of Songkick Ian Hogarth that start-up businesses can often reap the benefits of IT contractors.

He indicated that software engineers are essential for those starting out in the technology industry.