We were pleased to see the recent announcement from Hewlett Packard that it has confirmed a 50% increase in the number of small IT firms and contractors that it plans to sub-contract work to – something which will come as welcome news for umbrella IT contractors across the UK. HP is the Government’s largest IT contractor, and until now it has sub-contracted public sector work to around 600 smaller IT companies and individuals, including contractors who work through umbrella companies. The company has now announced that it is going to increase this number over the coming year from 10% to 15% of its public sector operations and that this target will remain in place until 2013 at least.

Nick Wilson, UK Managing Director of HP, said that ‘if necessary, the company will redirect spending from elsewhere in order to meet the target. The industry sees this as HP is ‘doing its bit’ to support the Government’s as it aims to help smaller companies find new sources of revenue, and so assist in generating much-needed economic growth. The Government welcomed this new commitment, which HP states is ‘the first UK SME initiative by a large systems integrator.’

Both HP and the Government said that their motivation was to ‘help smaller firms bring growth to the UK economy’. HP also said that it will appoint an ‘SME champion’ who will manage and oversee the initiative, and that there will also be an online site where new subcontractors to register to become an approved HP supplier. As part of the announcement, HP also reiterated its commitment to meeting agreed 30 day payment terms for state contracts, as part of the Government’s Prompt Payment Code. Something that will also be great news for umbrella contractors!