|
The ATSCo Chief issued the warning at a recent Chartered Institute of Purchasing and Supply meeting, which aimed at educating procurement managers on the legal and commercial pitfalls of Preferred Supplier Lists.
Miss Swain told the meeting: "Purchasing departments are increasingly taking the overall responsibility for hiring IT contractors and staff and, typically, they are driven by savings targets towards extreme views on reducing agency margins."
She warned that achieving a ‘quick hit’ of a percentage margin reduction is often 'a false economy.'
Miss Swain continued: "There should be much more focus on the total cost and the efficient, on-time delivery of the IT project. Cost over-runs resulting from not obtaining the right quality of contractors in the first place can make the saving on margin reductions seem like a drop in the ocean."
She advised agencies and clients to establish contract terms 'that reflect the objectives of both parties to the relationship,' and advised agencies to take the opportunity to demonstrate their value by steering workers through fiscal and legal uncertainty, such as the Agency Workers' Directive.
--
Richard Powell, © Shout99.com 2002
|
