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IT project costs storm warning: How Stoneseed is your rock in a season of uncertainty

Where has this year gone? We are into the months ending in “ber” already!!!

Pumpkin Spice Lattes, hot chocolate, autumnal soups, hearty stews and mulled wine incoming!

As the seasons change and the weather turns, autumnal food and drink are great for maintaining your mental health, throw in some raincoats for the battering rain and candles for those dark (earlier!!) nights and you can almost romanticise the “bers”!

It’s all about preparation.

In business and IT Project delivery, it’s not just the uncertain and challenging weather to prepare for – a season of uncertain tax and business costs is looming on the horizon too. Is your business and its IT project team ready for the storm?

RISING EMPLOYMENT COSTS

Talent gaps and shortages, increasing opportunities for the transferable skills of project talent across a range of industries, and the fact that, according to Indeed, Project Manager is the best job in the UK for 2024 are all pushing up the cost of hiring in IT Project Management.

Beyond remuneration, there are other factors that are on the radar of HR and Financial Directors alike. For instance, there is speculation that the chancellor, Rachel Reeves, is considering a rise in the employers’ NI contributions (NIC) rate in the Budget in October.

IR35 – “THE GRIFT THAT KEEPS ON GRIFTING”

Reeves said repeatedly during the election campaign and since taking office that the big three taxes paid by working people (PAYE/income tax, employee NIC and VAT) would not be increased. No similar assurances have been given about employers’ NIC, leaving analysts to suggest that this is where she’ll go to plug the reported public finance gaps. Indeed, Darren Jones, chief secretary to the Treasury told the Telegraph that the Government has pledged “not to increase employee national insurance” but refused to confirm that the employer contribution was just as protected.

Mike Lavan, Director – Global Mobility and Employment Taxes at KPMG is perhaps more optimistic, he wrote, “There is some debate around whether or not the commitment includes Employer NIC. In the absence of further statements from Labour to the contrary – and given the party’s focus on growing the economy and productivity – it remains the working assumption that the pledge covers all NIC. However, employers will be keenly watching for announcements in this area. “

They’re big numbers. In 2023-24, employers paid £107.9bn in National Insurance contributions, up a whopping 35% on pre-pandemic levels, when the total was £79.1bn.

Of course, the greatest change during this period was the introduction of IR35, moving swathes of freelancers (and lots of IT Project talent) out of self-employment and onto the payrolled headcount of organisations.

So, something that, just five years ago might not have troubled many companies, has become a potential existential threat.

A Finance Director once joked to me that IR35 would be the “grift that keeps on grifting”, he was referring to the fact that costs incurred by the change would only increase. It’s a joke that for many is becoming less and less funny.

I’m writing this in early September 2024, you may be reading this after the Budget, by then you’ll know whether this happened or not. Even if it hasn’t/doesn’t, the speculation and the fact that almost two months before the budget we just don’t know is indicative of the uncertainties that businesses are facing in the last quarter of the year and heading into 2025.

Factor in rising supply chain costs, higher energy bills and costs incurred by talent-shortage-driven delays (we’re coming into cold and flu sick-day season) …

… time for better, more certain plans.

PMaaS – THE PANACEA?

Let’s start by addressing that potential employer NIC hike.

Project Management as a Service (PMaaS), Stoneseed’s innovative project resourcing model, takes IR35, and therefore employer NIC, out of the equation.

Stoneseed’s Project Management as a Service (PMaaS) provides flexible IT Project resources and tools to help you deliver project success, without the worry of IR35 complications. IR35 simply does not apply as we employ most of our Project Team, they are on our payroll and therefore comply with UK tax legislation.

Whether you require an individual resource or multiple resources with varying skillsets such as Business Analysts, Project/Programme Managers, Project Management Office (PMO) consultants or Business/Technical Advisory roles, Stoneseed can provide them from our own team in line with your project demands, as and when you need them.

Whether the Chancellor tinkers with employer NICs or not, Stoneseed’s model is a cost-effective way of resourcing IT projects moving forward as flexibility and control are pillars of PMaaS both in terms of resourcing and costs.

WHAT IS PMaaS?

Stoneseed’s on-demand PMaaS model allows you to dial up or dial down resources in sync with your delivery needs and the PMaaS commercial model is as simple and straightforward. Stoneseed will work with you to forecast your project resource requirements and then provide a transparent rate card, with resources defined by type and skill set, for you to call off against your project demand schedule. As you dial resources up and down throughout the period, what you pay flexes too. You are simply billed for the resources called off, at the end of the month.

PMaaS enables you to align resources as and when you need them, on a cost effective, full-time or part-time basis.

Furthermore, all Stoneseed’s PMaaS resources are available onsite or remote, offering rapid response and mitigating potential costs incurred by delays caused by talent gaps and shortages.

Download the PMaaS brochure or call 01623 374187 to find out more.

All of our project resources, including Project Managers, Business Analysts, Technical Advisory and PMO experts, are available from 1 – 5 days a week, on a flexible basis and are managed and supported by our PMO. Let’s explore the value of your PMO in this season of uncertainty.

PMO

Any project team looking to safeguard against potential rising costs and erosion of return on investment (ROI) would be wise to take a deep look at their Project Management Office (PMO).

The PMO sets and ensures standards for project management throughout an organisation and oversees the creation and embedding of the most efficient procedures and best practices. The foundation of every successful project team, the PMO maintains well defined processes and governance, planning, forecasting, project resourcing and facilitating that invaluable bridge between your business strategy and project delivery.

It is the control centre for value and governance and, as we enter into this uncertain season, your PMO will play an increasingly integral role. Make sure yours is ready.

PMOs exist in many shapes and sizes, it’s never a one size fits all, and they should evolve, grow and adapt to suit current needs – like when costs are set to rise.

At Stoneseed, our Portfolio, Programme and Project Management Office, with P3O qualified staff, is the backbone of every service we deliver via our PMaaS model. From onboarding clients to resourcing projects, through to consultancy, service provision and transition, it is the key to the success of everything we do.

Stoneseed offer an extensive range of Project Management Office services from resource provision to a full end-to-end PMO package via a Managed Service. Our PMO consultancy services can help identify “where you’re at”, the majority of our engagements begin with a discussion about your current PMO capabilities, to assess the level of support needed, whether it’s establishing, refining, or supporting your PMO.

FROM PMO CONSULTATION TO YOUR TAILORED 100 DAY PLAN

Stoneseed helps clients to identify their PMO needs with reviews, assessments and workshops; due diligence questionnaires and gap analysis to build a 100-day implementation plan for deployment.

We inspect the current maturity level of the PMO, the future requirements and the steps to achieve the organisational goals, and offer a Technical Design Authority, which ensures solutions are fit for purpose and are aligned to the wider Enterprise Architecture. This ensures that appropriate technical governance is applied throughout the project lifecycle. Our team can then work collaboratively with you to create an implementation plan for deployment.

Dale Beeton, Stoneseed’s Head of Client Engagement said, “I would always recommend a minimum 5-day PMO consultation, essentially designed to be like a BA’s As-is-To-Be type engagement. We need some time to fully understand where you are, what you want to achieve and what steps need to be taken before you can get there. That’s where the 100-day plan comes in, we use all of the information we’ve gathered and digested on the current state of your PMO, and then we provide a clear and detailed plan that shows what can be achieved in the next 100 days”

In short, at the beginning of an engagement we would develop a 100-day plan with YOU to concentrate on the most important activities to complete within the 100 days, due diligence here can help mitigate future cost rises.

CONCLUSION

Cosy nights in as rain lashes against the windows, bracing raincoat commutes and character-building welly-boot school runs …

… it’s all about preparing for the reality.

As we search for our winter coats, brollies and ice-scrapers in preparation, what will you do to ensure that your IT Projects and teams are just as ready? Call Stoneseed on 01623 374187  to find out how we can help.

In the meantime, do you want marshmallows and squirty cream with your hot chocolate?

More about Project Management as a Service from Stoneseed

SOURCES

https://kpmg.com/uk/en/home/insights/2024/07/tmd-what-employers-can-expect-from-the-labour-government.html

Chancellor contemplates increase in employer national insurance

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