Feeds

More IBM contractors get rates cut

Elan feels the burn

The Essential Guide to IT Transformation

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. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
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
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
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.