Vodafone today confirmed it is to slash cIT ontractor pay rates from the end of this week.

A Vodafone spokesman told The Register that "some contractor pay rates" will be reduced by 10 per cent. Pay rates have been "adjusted to reflect current market rates", he added.

Last week Vodafone sent out a memo to contractors (copy below) which provides more background on the cuts. ®

Following several months of Director level meetings, Vodafone have instructed their current preferred suppliers of IT contract personnel to implement a cost reduction policy that they see as vital to the future growth and profitability of Vodafone UK. In line with cost reductions through out all areas of the organisation Vodafone are seeking to achieve a significant saving in their IT contractor spend. In order to realise this saving they are implementing a rate reduction program that will result in a 10 to 15 per cent reduction in contractor charge rates.

It is proposed that effective from 6th November 2003 rate reductions will be enforced on the following scale:

Over £500 per day - 15 per cent reduction
Above £15 per hour but under £500 per day - 10 per cent reduction

We appreciate that this is not the type of news that will obviously be welcomed within the Vodafone IT contracting community, however Vodafone see this as the only real alternative to a reduction in contractor numbers, which would have a far bigger impact on Vodafone and peoples livelihoods.

You will be contacted individually to discuss how the reduction programme effects you, and letters will be sent confirming the details.

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