CIO Executive Council 2006 Survey "Where the IT Cuts Are"
Here's that article that I was referring to in my last post. Galen Gruman wrote a good article for CIO about strategically cutting IT budgets. You can read the article yourself and draw your own conclusions. What I found most interesting were some of the CIO Executive Council survey results. In short CIO's surveyed said they were cutting 35% of their freelance budget next fiscal year.
I would think that could also be interpreted as they need to get a better ROI on their freelance contractor services. As being in the ERP game for many years I believe it's a lot easier to look at the type of freelance services my company is hiring and from whom they are being hired.
Many Tier 1 interrogators (IBM, Accenture, DT, KPMG, etc.....) have gone into the staffing freelance contractor business unknowingly to the company that hired them. Before long the Tier 1's strategic services solution quickly turns into presentation of resumes to fill niche roles that weren't planned for in their original assessment.
Here's the kicker..... these resources are marked up 2.5 times their salary. So where is all that value going. So again I ask the question; are the CIO's looking for a better ROI of their freelance contractors or a flat 35% of the aggregate IT spend? The answer was always clear to me.....