IBM slices UK GTS contractor rates
Ninety per cent of something or a hundred per cent of nothing
IT contractors working for IBM Global Technology Services (GTS) in the UK are being hit with a 10 per cent rate cut from this week.
A Reg reader said that IT bods were being told that they had to accept the rate reduction from this weekend.
Recruitment firm Hays confirmed that contractors were getting their pay chopped, but wouldn't give any further details.
"Some contractors are being notified of proposals to change their daily rates," a spokesperson said. "Those individuals affected by the changes are being contacted directly."
According to IT Jobs Watch, IT contractors at IBM GTS in the UK make an average daily rate of £425 and an average hourly rate of £24.95.
GTS, which takes care of stuff like hardware outsourcing and product maintenance, had essentially flat sales in the third quarter, after a small increase in Q2.
IBM declined to comment on the rate cut. ®
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COMMENTS
Re: 1st rule of contracting
Indeed (having served my time with IBM). However on £425 a day the most expensive part of a cup of IBM coffee is the cost of the time it takes to walk to the machine (or cafeteria) and back again.
I did once suggest to my IBM boss that it would save them money if they employed a "waiter" to serve coffee to the "subbies" at their desks, rather than having the contractors fetch it themselves. Surprisingly, this was not well received!
Re: ScottME
"I'm sure the whole point of this is to allow IBM to push up the earnings per share wihtout having to buy back even more shares." There, fixed it for you.
Re: 1st rule of contracting
First rule of contracting... Never trust the company that you are subbing through.
Second rule of contracting... Learn to live off a smaller percentage of your wages. Its usually either feast or famine.
Third rule of contracting... Learn how to get in to the daily rate game. Then understand, you're going to be the first to be man ... err... 'asked' to stay late and arrive early.
Fourth rule of contracting... when working for IBM, don't drink the cool-aid.
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