The value that IT agents add to Contractors – Yes That’s Right

Agents Add Value to an IT Contractor
Agents Add Value to an IT Contractor on an IT Contract

Agents Add Value

This article, on the value agents add, was sent in by a reader in response to one of our articles.

Value Added

And what precise value do Agents add to the relationship with their client and contractor?

1. They provide a means to source contract resources to specific requirements on a first contact basis. (I’ve not had any clients take me on contract without an interview).

Agents Add Value
Agents Add Value to an IT Contractor

2. They provide a device, through the agency contract to ensure that tax liabilities will not be incurred with the Client organisation; Hence the universal requirement to contract through a limited company.

3. They provide, also, an invoice factoring service for their contractors.

Value Not Added

I find the logic, therefore, of these types of arguments akin to an Estate Agent claiming that every house they sell was built by them.

I see the client every day.

Also, I provide my expertise and work.

Moreover, I am providing the value.

I have been contracting for 11 years, I’ve not had an agent sit down next to me and help me do my work.

IT Contractor Comment

Does everyone agree with this writer or do you believe that agents add value to the process in a way not seen by the writer of this article?

Please use the Comments section below to reply.

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    1. Haha! That’s not useful. Here’s some data.
      70% of clients find that agencies do not provide good value for money once they’ve used them.

      A tax liability incurred by either party isn’t transferrable to an agent. Agencies add no protection at all in that regard. That’s a pure fabrication. Indeed, some practises employed by agencies discriminate and are indeed, illegal. This means agencies actually put end clients at risk. It only requires one contractor to take them to court for it to set a precedence.

      The pool of talent is a nice easy way for clients to get lots of contractors to apply quickly. However, the agent is in less of a position to evaluate the fit of candidates than the client. So the number of CVs doesn’t reduce. Also, due to the keyword searching performed by agencies, it’s extremely common to exclude some of the best candidates, since they may label it differently or only use the terms as ‘bread an butter’, sometimes even removing then from their CV to keep it short and focus on the most important, innovative aspects.

      Agencies don’t add any value, except in their speed to get access to a market. The question is whether their perceived value-add offsets the potential illegality and poor quality of service. If there was a viable alternative, nobody would use them. Indeed, the UK is peculiar in its reliance on agencies. No other country to my knowledge has that reliance.


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