Research carried out by PeoplePerHour.com has shown that Small and Medium-sized Enterprises (SMEs) are more likely to employ IT freelancers rather than employ a permanent member of staff. PeoplePerHour.com surveyed 360 SMEs to discover that 61 percent of the businesses that responded intended to increase IT and technology investment. The UK has around four million SMEs.

Only 18 percent intend to employ permanent IT professionals, with 38 percent of small companies planning to use IT freelancers as part of their IT investment strategy. Overall, 43 percent viewed the use of IT freelancers as the solution to IT requirements and not as a supplement to permanent staff or in-house solutions.

Chief Executive of PeoplePerHour.com, Xenios Thrasyvoulou said:

“The last decade has seen a boom in remote freelance working, facilitated by the Internet. This has been led by the IT industry, which lends itself to freelancing.”

For many SMEs freelancers, including umbrella company freelancers, provide a cost effective solution to the IT requirements of a company that employs fewer than 250 people. To set up an in-house IT solution would be a large investment of valuable resources. Freelancers provide services as and when they are required, without the need for the burden of administration.

This survey shows that IT freelancers are in demand, in particular for skills in Joomla, Wordpress, iPhone Apps, PHP, SEO and more. For freelancers who also want to work without the burden of administration restricting their time, an umbrella company will source work as well as maximising pay. A reputable umbrella company will deduct legitimate expenses for travel and subsistence as well as deducting tax and national insurance at source.

As freelancers are an economical alternative to permanent staff, they will continue to be in demand, especially as the public sector is making spending cuts, which is when freelancers may be an effective recruitment measure.