Some departments are said to have already been cleared of IT contractors, and the rate cuts appear to be accelerating the process in others.
ContractorCalculator reports that contractors have been told to accept the rate or leave by Friday 4 April 2014 if they don’t agree.
But for Barclays, its move is likely to have a damaging effect. 'This is exactly the wrong time in the IT contracting market cycle for any bank to be taking such a risk with its IT', warns ContractorCalculator CEO Dave Chaplin. 'The best and most productive contractors are easily finding new contracts in such a buoyant market, leaving less qualified contractors and new starts to maintain Barclays’ IT systems and pick up existing projects.
'And even those highly experienced contractors who may decide to stay are hardly going to be highly motivated now, so the rate cutting exercise will backfire across the board', Chaplin continues.
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