Feeds

Capgemini tells contractors to bite 15 per cent cut

Suck up or ship out

Intelligent flash storage arrays

Capgemini has told contractors working on its Aspire contract to accept a 15 per cent cut or leave.

Blaming the recession, Capgemini asks contractors to work with their agencies to cut rates. Aspire is CapGemini's outsourcing deal with Her Majesty's Revenue and Customs - it cut 600 jobs on the contract back in late 2007.

The email, sent to Aspire contractors, said:

The current economic climate means that the market rates for contract resources has dropped due to the reduced demand for contractors... Capgemini have instructed [your agency] to seek your assistance in achieving their business objective and request a reduction in your daily / hourly rate to that which reflects current market conditions. We would expect this to be up to 15 per cent.

The mail said the slashed rates will come into force 2 March 2009. Contractors must present their new offers by this Friday, 30 January.

The mail adds:

Capgemini and Elan will consider positively the flexibility you will demonstrate through accepting this change, in conjunction with the business requirements for the role at the time of your next contract renewal.

The source who sent us the mail said that the majority of contractors were unhappy with the change, but had been warned by agencies that Capgemini would look for cheaper people to fill their jobs if they refused.

Our source said: "Talk about taking advantage of the recession... a lot of people are in fear for their jobs."

Capgemini sent us the following:

"Capgemini operates in a highly competitive market and must prudently manage our cost base at all times. The current economic climate means that the market rates for contract resources has dropped. Capgemini has a strategy to continue to use external resource and wants to ensure that this strategy remains realistic in the present climate. Following consultation with our resourcing partner, we would expect the reduction in contractor pay to be up to 15%."

The work employs about 200 people.

Although rates have undoubtably fallen in recent months, a 15 per cent cut seems like a big jump to us.

Several firms including Barclays Capital and Goldman Sachs have both used rate cuts alongside normal redundancies. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
Inside the EYE of the TORnado: From Navy spooks to Silk Road
It's hard enough to peel the onion, are you hard enough to eat the core?
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.