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Public sector reports huge rise in outsourcing digital freelancers

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By The Drum Team, Editorial

March 18, 2011 | 2 min read

According to new data, the public sector has responded to the government's drastic cutbacks by using freelancers in record numbers.

Invoicing on PeoplePerHour.com for public sector digital projects so far this year is seven times higher than it was in the same period last year, as unemployment rose to 2.53million - its highest level since 1994.

PeoplePerHour.com has reported a 315% increase in the number of digital job postings, including web design, database development and SEO.

Founder and CEO Xenios Thrasyvoulou said this is down to the public sector finally waking-up to the cost-saving potential of outsourcing to freelancers, commenting: "When the recession hit, the private sector was quick to respond to the new economic reality by shedding permanent staff and engaging freelancers instead."

He continued: "Thousands of UK businesses quickly realised this was the best way to stay lean and remain solvent in the face of testing economic conditions.

"The public sector had no such imperative and continued employing and retaining fulltime staff. However, since the government started slashing budgets, the public sector has been forced to find a more cost effective and efficient approach to human resources.

"It's clear from our figures that the public sector has learnt a lot from the private sector about the benefits of using freelancers."

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