3 ms·

If you service big companies, not really. BigCorps will shed their permatemps before they cut employees loose, so you're really just first on the chopping block

If you service big companies, not really. BigCorps will shed their permatemps before they cut employees loose, so you're really just first on the chopping block if you are in a staff augmentation situation. Middle market, yes and no. We get more 'steady state' type labor from them, whatever it takes to get the business running day to day. However, new projects are way harder to sell. To wit, my firm is currently unable to keep up with MSP work, but the project selling side is starting to get pressured on utilization and it seems like clients are scaling security stuff down to just the barest regulatory requirements. Also, if you are at a blingier outfit your clients are going to start price shopping. They'll be back when they realize the quality isnt as good or if it turns out you CAN put a price on tribal knowledge... or maybe you'll meet an old contact at a trade show and they'll tell you the new upstart competitor is taking your lunch after all. tldr we are not just sitting on our hands. the firm as a whole will do well but every consultant has to prove their worth by billing and that is not guaranteed to be easier.

yrgulation 4y ago
From experience i find the opposite to be true in the uk. Big companies first shed permanent employees then bring consultants. Less hassle for them even if it appears more expensive. Matter of fact large uk banks and corps are known to rely heavily on contractors even in good times. Usually the value they get is also higher as contractors are more experienced.
- etothepii 4y ago
  I have witnessed this too. It always felt like. The contractors are our slack variable but this cut is permanent so better to chop the employees.
UncleOxidant 4y ago
> If you service big companies, not really. BigCorps will shed their permatemps before they cut employees loose, so you're really just first on the chopping block if you are in a staff augmentation situation. Can confirm. The BigCorp I'm at is shedding contractors in a big way right now. Though later on in the cycle when they realize they've cut too deep they'll bring back contractors well before they start hiring permanent heads.

yrgulation 4y ago

From experience i find the opposite to be true in the uk. Big companies first shed permanent employees then bring consultants. Less hassle for them even if it appears more expensive. Matter of fact large uk banks and corps are known to rely heavily on contractors even in good times. Usually the value they get is also higher as contractors are more experienced.

etothepii 4y ago
I have witnessed this too. It always felt like. The contractors are our slack variable but this cut is permanent so better to chop the employees.

UncleOxidant 4y ago

> If you service big companies, not really. BigCorps will shed their permatemps before they cut employees loose, so you're really just first on the chopping block if you are in a staff augmentation situation. Can confirm. The BigCorp I'm at is shedding contractors in a big way right now. Though later on in the cycle when they realize they've cut too deep they'll bring back contractors well before they start hiring permanent heads.