The total value of federal government IT labour hire contracts crashed in the three months to December, according to new figures from public sector research firm Intermedium.
Intermedium’s quarterly Labour Hire Report showed that the government’s spend on IT contracting was $70 million, down 38%.
There were a total of 678 contracts during the quarter, compared to 1,053 a year earlier.
Intermedium’s research also showed that the two biggest players in the federal government IT contracting market, Paxus and Peoplebank, lost market share during the December quarter.
Paxus had 45 contracts worth $5.8 million during the quarter, down 39% year-on-year in dollar terms.
Peoplebank had 55 contracts worth $4 million, down 62%.
The third largest supplier to the government, Compass, saw its market share increase by 106% during the quarter, to 33 contracts worth $3.6 million.
SMS Consulting had 28 contracts worth $3.5 million, up 60%.
Clicks IT was down 14% to 28 contracts valued at $3.1 million, while Talent International saw an increase of 14%, to 22 contracts worth $2.7 million.
Icon Recruitment, Greythorn and Clarius all saw their federal government market share fall 44%. Icon had 30 contracts worth $2.7 million, Greythorn had 22 contracts worth $2.3 million, and Clarius had 21 contracts, also valued at a total of $2.3 million.
Finite was down 21% to 15 contracts worth $1.8 million.
The fall in the December quarter followed a relatively strong September quarter, which saw the strong seasonal rise that is typical of government contracting at the start of the fiscal year.
Although the September quarter saw a 6% fall in the number of contracts to 1,790, the overall value of $287.7 million was up 3%.
This article appeared in Shortlist News, an email service providing the latest news and analysis on recruitment and human capital management
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