The Pros and Cons of Agency Contractors

By Chris Talbot  |  Print this article Print

Looking for short-term or long-term help with an IT project? IT solution providers are turning to IT talent agencies to fill the gaps in the still uncertain post-recession economy.

Whether it makes sense for an individual business depends on the business, said Geoff Mair, CTO of Partnerpedia.

"My view of it, as a company that does a lot of recruiting, it’s quite a bit more expensive to go that route and you don’t necessarily get better results than if you were doing it yourself," Mair said.

Using contractors does provide a benefit to organizations that have project fluctuations, Mair said. It provides a way to increase the workforce without actually having to hire full-time staff, but contractors are more expensive on a per hour basis than full-time staff, he noted.

"This is a new way of doing business in the IT services world," said Kashif Aftab, CEO of IQ Tech Pros.

According to Aftab, IT talent agencies like IQ Tech Pros can manage human capital for the IT workforce more efficiently and cost-efficiently.

"I think in today’s world where good human capital is hard to find, we are systems and processes in the human capital network and are able to go and perform for some of these vendors out there," Aftab said.

The trend towards using contractors changes over time, Silver said. Once employers feel more confident in their business, they find it’s less expensive to hire full-time staff than pay contract rates.

It may not be quite over for all businesses, though, and hiring contractors still makes a lot of sense because of the questionable economy.

"They just don’t have the headcount they used to have on staff. And the way the economy’s been the last two years, there’s been these peaks. All of a sudden you have a lot of work and then you have nothing," Iovinelli said.