Interim market under pressure

21 June 2009

22 June 2009 | Rebecca Ellinor

Around a third of interim procurement professionals have been asked to cut their rates, according to research by recruitment firm CIPS-GPA.

About 200 interim purchasers replied to the survey. Of those asked to accept a smaller payment, 37 per cent agreed, 58 per cent refused and a handful terminated contracts earlier than planned.

Some 50 per cent of respondents were finding it more difficult to get new contracts because the downturn has led to an increase in the number of interims and has pushed rates lower. And some big companies have introduced a blanket rate reduction - although some have offered contract extensions at the lower rate to soften the blow. A little under half (43 per cent) are receiving a daily rate of £300-£500, with 31 per cent being paid daily rates of £500-£700. Interim buyers overseas are enjoying better rates than UK counterparts, the report found.

The good news was that 63 per cent felt procurement staff are more likely to be in demand in the recession and there was a belief that confidence in the market would pick up from quarter three, when companies start to focus more on cost management and change programmes.

The research concluded the procurement interim market has faced similar pressures to the generalist interim market, but not to the same degree.

CIPS-GPA has advice for buyers considering becoming an interim. Among the tips, found at www.cips-gpa.com, are to set up a limited company, register it at Companies House and contact your local HM Revenue & Customs office to let them know. It also suggests that new interims appoint an accountant and organise professional indemnity insurance.

SMjun2009

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