Speller International Current Market Insights

Posted on June 2020 By Speller International
Speller International Current Market Insights

We are often asked, how is the SAP market going? Understandably, people are concerned about the impact the global pandemic and the recently announced recession will have on the market.

So, below are Speller's current SAP insights on what we have seen since we entered the global pandemic.

Most current projects have continued

Current projects have been affected, however it’s not the dramatic rise in contracts prematurely cut short that we expected. We estimate 15% of our current contractors were rolled off or had contracts cut short prematurely.

We have also seen projects put on hold or scaled back. As a result of the pandemic, companies are working out new ways to deliver their projects in more efficient ways. Yet, for the most part, companies have tried to keep their contract staff where possible, reduced hours or rates to maintain staff or utilise staff in other ways within the company. These have all helped to reduce the number of job losses across the board.

New contracts have declined significantly

Unfortunately, there is no getting away from the fact that the market has reduced its uptake of new contracts significantly. We have seen around a 70% reduction in new roles as clients have become nervous about the economic climate and hesitant about starting new projects whilst restrictions are still in place.

Clients have been making more enquiries about fixed term contracts - a more cost effective answer - in preparation for market change. We’re starting to see some increase in job availability and are hoping that June will be a promising month.

Contract extensions reduced

We have seen a reduction in contract extensions. This is a result of budgets not being approved yet, and projects being postponed in these uncertain times.

Although, from a contractor’s point of view, it’s very unsettling, clients are also affected by this. This leaves them with the fear that once the project finally begins, they’ll be unable to secure the right consultant for the role.

Flexibility in the workplace

There has been a lot of articles written on the benefits of having the flexibility to work from home. These vary from the ability to save money and time from the commute to spending more time with loved ones.

However, from an SAP market perspective, the ability to work remotely has opened up the opportunity for companies to hire the best talent for the role without the geographical hinderance. It will also reduce the time many consultants spend commuting interstate for work which benefits both employer and employee.

The general mood across the workplace is that people are enjoying working from home, and in fact, getting more work done in less time due to less distractions.

Rates are reducing

Due to the increased number of contractors looking for work at the moment we have seen a reduction in rates across the board. Whilst we hope to see a rebound, it may be worth considering your rate expectations whilst we are in these difficult conditions.

Another impact on rate reductions could be the fact that people are working from home, which allows clients to ask for lower rates as the consultant isn’t travelling. In other words, it’s a way that the client can get more value for money without the consultant being significantly out of pocket.

What about Speller?

As with many companies we have had to adapt our approach. We have moved to working from home and have been fast tracked into using new technology such as Microsoft Teams. As we are a people facing, hands-on, pen and paper kind of place, this was a bit of a challenge. We’re proud to say that we all coped with the changes and have adapted well.

We have maintained all our current team and are all working together to get through this difficult time where resource requirements are harder to come by than before. On the up side, what we have found is that we are having more valuable conversations and are gaining the opportunity to get to know our clients and consultants on a more personal level.

There is no quick fix to these current circumstances, but by staying true to our values and through hard work, we hope to be back on track in the not too distant future!

If you would like to speak further on these issues with any of our consultants or are interested in providing your current CV for positions that arise, please feel free to call us on our main line (03) 9348 0092.

For SAP industry updates and more information about the Speller Team, feel free to follow us on LinkedIn.