IT contractors' bargaining power has been reduced significantly after the credit crunch, as many IT departments have financial constraints placed upon them from company directors.

According to Contractor Eye, this situation has been made worse by the public sector spending cuts which have been proposed by the coalition government.

However, the website does offer some tips on how to maximise the amount IT contractors can obtain for their work.

Workers are urged to weigh up the "opportunity cost" of not taking a role - the prospect of having to cover monthly outgoings while awaiting a better offer.

IT contractors must sharpen their sales and negotiating skills, striking a balance between firmness and desperation.

"Your ability to negotiate is based on factors you can't control (particularly market conditions), and factors you can influence (such as your personal skills and how 'in demand' you are as a contractor)," the website notes.

The PCG recently urged contractors to consider the possibility of delivering projects ahead of the scheduled date.