Interim management contractors experienced record levels of growth in their industry, with new assignments increasing by 8% and the average length of those assignments massively extending to 181 days, compared to 130 days in the previous quarter.
This is according to the latest Ipsos MORI data from the Interim Management Association (IMA), which confirms that the financial sector continues to dominate demand, and the public sector’s use of interims is falling.
“The findings … represent the highest overall growth rates we have seen since the Ipsos MORI survey was started and are really positive for the industry,” notes Jason Atkinson, chairman of the IMA and managing director at Russam Interim.
Despite a sharp increase during the first quarter of 2013, interim use in the public sector continues to decline, accounting for only 35% of all interim assignments. A year earlier, this figure stood at 46%, and in the final quarter of 2009, the public sector accounted for 55% of all interim assignments.
Based on this long-term downward trend, it is possible that the fall in public sector use of interims is primarily as a result of austerity measures and not simply the off-payroll rules introduced in September 2012.
This is reinforced by the fact that local government accounts for 55% of all interim contracts. Those departments most affected by the off-payroll rules, such as health and central government, account for only 13% and 11% respectively of all public sector contracts.
The financial services sector continues to be the overwhelming consumer of interim management contractor services, accounting for over half (56%) of all private sector contracts. In second place is the chemical, pharma and biotech sector, followed by business services and IT.
In terms of job function 31% of interims were hired to implement special projects, while finance roles accounted for 18% of contracts. The reason for interim assignments is mostly project management (56%) and gap management (22%).
Atkinson concludes: “All key indicators now point in the right direction, and we are seeing our member firms really prospering, with volumes up by just over 22% overall. As the economy progresses, the interim management sector is fast to pick up, given the flexible resourcing option it provides.”