According to Forrester, it's not good for the consultant/contractor/vendor due to:
Vendor consolidation
Lower daily rates
Offshore vendors sell staff augmentation services
Contingency workforce management software tools improve sourcing
Offshore daily rates are a fraction of onshore rates.
Vendor management initiatives make it difficult to charge more than market rates
However, it is positive since:
The following drivers will shape the IT staff augmentation market in 2005:
Increased IT spending will necessitate staff expansion
Companies lack skilled employees
Happy New Year ?
- Adwait