Here’s why IT Contracting has a superb future.
IT Investment has Superb Future
A new study shows that investment in IT makes the biggest difference to the profitability of business.
However, Britain needs to spend a lot more if they are to succeed.
Investment in IT improves the productivity of UK business, according to research by the London School of Economics sponsored by the DTI. It has a superb future.
Higher Output Per IT Worker
The study, which looked at more than 7,500 businesses, found that investment in hardware and software was associated with “significantly higher” output per worker.
US firms located in the UK invested 40% more per worker in IT than the average, and non-US multinationals operating in Britain spent 20% more.
Domestic firms spent “much less” than the mean figure.
Spending on IT
That‘s a great shame because a survey a while back showed that increasing spending on IT is the best investment that companies can make.
Nothing else generates anywhere near the Return On Investment (ROI) that IT spending generates.
If British companies and the British Government want to become more successful, and more productive, they know what to do – spend more money on IT. That’s why IT in the UK has a superb future.
The fact that spending on IT is so fruitful is great news for all those that work in the industry – including contractors.
It ensures that there is a superb future for those who work in IT. Not so long ago the future looked so gloomy.
Now it has all turned around.
It looks like the IT Contracting profession is here to stay. There have been times, during severe downturns, when pundits were predicting that IT Contracting had had its day. The pundits were saying that offshore outsourcing and cheap IT labour from places like India would destroy IT Contracting as a profession.
They also pointed to IR35, as well, saying that this made it all less worthwhile.
Now, we see that money spent on IT gets you the best Return On Investment of the lot. Every dollar spent on IT gives a Return on Investment of 4 dollars.
Permies often say IT Contractors are paid too much. Maybe they are not paid enough.
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