Feeds

More IBM contractors get rates cut

Elan feels the burn

Boost IT visibility and business value

Another group of contractors at Big Blue have had their pay rates cut, this time via recruitment outfit Elan.

The company and Elan are remaining quiet on how much the rates have been cut by, but one anonymous source told The Register that it was by as much as 15 per cent.

"This seems ridiculous to us, when the majority of contractors are working on revenue earning projects, surely this ultimately will result in lost revenue plus IBM is bucking the trend when it comes to profits," said the source. "It seems more than a little harsh mid contract."

Just last month recruitment group Hays confirmed it was slashing contract staff rates at IBM. It also declined to comment on how many would be affected, but it was understood that a limited group of up to 300 contractors were involved, and not the entirety of IBM UK's contract employees.

An Elan spokesman told El Reg today that some of its contractors had been informed of rate cuts.

"This week technical subcontractors engaged on IBM business have been notified of changes to their daily rates," he said, echoing Hays' statement in March.

He added that Elan always tried to ensure rates were “fair and appropriate within the marketplace”.

We asked the spokesman if he could confirm how many contractors had been affected by the rate cut and by how much, but he declined to comment.

A person familiar with the matter told us that rates “hadn’t been cut across the board” but rather had been “limited in scope and specific” to some IBM contractors. ®

Best practices for enterprise data

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?