The Australian ICT industry, like its equivalents within the United Kingdom, Europe and the United States, relies heavily on the use of contingent labour or contractors for the delivery of ICT-enabled outcomes for public and private enterprise. In 2007, Longhaus found that the ICT contractor market in Australia was AUD$18.3 billion per annum or 23% of the total ICT sector activity and comprised of just over 100,000 individuals. The Queensland Government, like any large enterprise, is heavily reliant on ICT contractors for the successful delivery of ICT-enabled outcomes. However, lack of consistent internal and industry reporting of contingent labour has meant that the true scale and investment in ICT contractors has been difficult for the Government to quantify. In August 2009, Longhaus undertook a study sponsored by the Information Technology Contractors and Recruiters Association (ITCRA) to quantify the Queensland Government ICT Contractor and Consultant market. This supply-side study provides a strong statistical foundation with 210 responses drawn from over 1,600 Government Information Technology Contract (GITC) registered ICT firms. The results show that the Queensland Government engages an estimated 2,419 individuals from the ICT industry within a total public sector ICT workforce of 6,158. These individuals are currently being supplied to government by over 800 companies at an average daily rate of AUD$857. This currently equates to approximately 20% of annual Queensland Government ICT spending. Of the 800 companies currently used by the Queensland Government for ICT contractor recruitment, smaller companies with less than 25 staff placements, or FTE equivalents provide more than 50% of all resources. These firms cost the government an extra 13-15% in real dollar terms over and above large companies, with similarly definable productivity on-cost premiums.
