The private sector is missing out on the benefits that IT contractors and other temporary workforce can bring, according to a new piece of research.

This is because most private firms view temporary workers as simply a way of avoiding adding to the permanent head count, claims recruitment agency Hays.

Company director Charles Logan says that Hays' findings indicate how important the flexible workforce is to the UK economy.

He added that workers such as IT contractors have helped companies get through the recession and will become even more important when the private sector is expected to pick up the slack created by public sector job cuts.

"As transformation takes effect and the line between the two sectors continues to blur, a flexible workforce will be a key component of any successful organisation," Mr Logan concluded.

According to Contractor Calculator chief executive officer Dave Chaplin, IT contractors need to show the private sector that they can offer a cost-effective way to access high-end skills which will help firms innovate.