The Australian Library Journal

Consultancy and contract work: perspectives from New Zealand

Alison Fields

Manuscript received October 2002

This is a refereed article

Three main outcomes were specifically targeted for this study:

• to provide a 'snapshot' view of the consulting and contracting sectors of the information services as they exist today;
• to identify common concerns within this sector; and
• to identify services or structures which could assist this group.

A range of data collection methods was used to gather information to fully understand the nature of these consulting and contracting sectors. The approach to this study was threefold:

• a literature review was conducted to determine what others had written about these sectors, what issues and topics were of importance, and to establish what if any, other studies had been conducted;
• the New Zealand market was examined to determine what external factors might influence or unite these groups;
• a survey of those involved in these sectors was conducted to identify common characteristics and traits, methods of working and other factors.

Details of the findings of these three approaches are given below, and show that while strong cohesion does exist, there are other aspects of this work where less unity is found.

Previous studies

A literature search revealed a handful of studies conducted along similar lines. The most notable of the surveys identified are Frey's Survey of information consultants and brokers in Australia conducted in 1985, and Warr's Paying for business information, a survey of United Kingdom consultants and brokers conducted in 1991. There are a range of other studies of less interest to this investigation, as they are either older or focus on different aspects of consulting and contracting than this study. Examples include Debons, who looked at numbers and types of information professionals employed in the US in the early 1980s, Maranjian and Boss who surveyed fee-based services, and Broadbent and Kelson who looked at information brokers in Victoria in the early 1980s. Little seems to have been conducted more recently.

Frey looked specifically at broking and consulting businesses in terms of resources used, client base, capitalisation, number of staff and their qualifications, their means of receiving requests for work, use of subcontractors, views on attributes required for success in the area, and consultant/broker views on the future of the area in Australia. The study determined that there was no umbrella term which described the brokers, consultants and contractors, but it is clear by the services provided by the group that it encompassed librarianship, research, records management and information management.

Warr's study focused on information brokers providing services to the business community in the United Kingdom. The main aim of this study was to provide an overview of UK information broking services, to identify common traits, and to determine whether there were any areas of business information provision not covered by the information brokers. It also concluded that there are few common definitions and terms describing information brokers and their work. No studies similar to these have been identified from New Zealand. There is a wide range of other items available in the literature giving details of consulting and contracting work, tools and skills needed to be successful in this area, as well as professional advice and personal accounts. As little of this comes from New Zealand, use of Australian sources as well as those from further afield is needed to construct an overall picture of what is required to work as a consultant or contractor, what work is done, and how it is managed.

The New Zealand setting and conditions

The size, structure and nature of the New Zealand market may influence the way consultants and contractors operate: its geographic location, and existing organisations and structures, including agencies and professional associations are relevant.

New Zealand currently has a population of around 3.8 million, about one fifth that of Australia, and close to the size of Sydney. The population of the greater Auckland region in 2001 was around 1.2 million and that of the greater Wellington region was 350 000. The size of the market and centres where consulting and contracting is being done will have an effect on the type and amount of work available. This is investigated more fully in the survey.

A number of professional organisations exist in New Zealand which provide support and collegiality for others working in the same field. The range of professional associations is similar to those in Australia, and is currently changing to meet the needs of the professions as they evolve and change. ARMA, for instance, currently has two New Zealand chapters, but these are in the process of regrouping under the RMAA umbrella. Other professional associations active within these professions include LIANZA (Library and Information Association of New Zealand Aotearoa), NZLLG (New Zealand Law Librarian's Group), ARANZ (Archives and Records Association of New Zealand), and NZSA (New Zealand Society of Archivists). Questions about membership of professional associations and whether these associations met the needs of respondents were asked in the survey.

The structure of the market is another factor influencing the methods of operating as a consultant or contractor in New Zealand. Most employment comes from local and national government, the education sector, businesses, and a range of other organisations. New Zealand has no major agencies which deal with recruitment, placements, and temping within these information services. Some small businesses deal with recruitment and placements on an ad hoc basis, but there is currently no major temping service which connects work in these areas with those seeking it. A number of other methods are used to advertise and locate work, and this aspect of the market was also incorporated into the interview questions for consultants and contractors. This is one of the factors that makes contract work in information services in New Zealand similar to consulting: the work is generally sought and won on the open market, and features such as reputation and self-promotion are part of the process.

Methodology

The survey provided the main source of data for this study. It was conducted over three months in mid-2001 and consisted of interviews with those working as contractors or consultants in the provision of information services. Interviews were conducted in person, and where this was not possible, by telephone. Each took an hour to complete, and allowed each contractor or consultant the chance to give their views, ideas and experiences on a wide range of subjects. Questions were a mix of set and open-ended formats to collect both quantitative and qualitative data. This method of interviewing also ensured a high response rate, which may not have been so easily gained from a postal survey.

Potential respondents were identified from a number of sources. To be considered for this study candidates needed to be currently working primarily as a consultant or contractor in one of the five fields encompassed by it. Given the absence of a national directory or listing of people involved in this line of work, identification was not a straightforward matter. The sources used for identifying contractors and consultants varied, and included the LIANZA list of library consultants in New Zealand [http://www.lianza.org.nz/consultants.htm], ARMA Wellington chapter list of consultants [http://home.clear.net.nz/pages/arma.wgtn/Consultants.htm], NZ-Freelance listserv [nzfreelance-subscribe@listbot.com] (which has recently ceased operating), advertising noted in industry journals, Telecom Yellow Pages, and industry knowledge and contacts.

These sources identified forty-three possible candidates. On checking, seven of these were found to be beyond the scope of this study. Of the thirty-six remaining people, twenty-six were interviewed, three were not available for interviews, and seven did not respond. This gave a response rate of 72.2 per cent for the survey.

Findings and discussion

The people

Of the contractors and consultants interviewed, eighty-five per cent were female and fifteen per cent were male, consistent with the overall gender ratio for these professions. The geographical spread of interviewees showed there is a high concentration in Wellington, with fifty-nine per cent of the interviewees working there. Twenty-two per cent were based in Auckland, and nineteen per cent were based in smaller centres around the country. The reason for this grouping of people in the two main centres emerges later in the interviews.

The formal qualifications of contractors and consultants ranged considerably, and all but one have tertiary qualifications in their particular discipline and many had other areas of expertise as well. Although not everyone gave specific details in reply to this question, there were many postgraduate qualifications listed amongst those interviewed. The higher degrees were in the fields of librarianship, archives and records management, business administration, public management, New Zealand history and teaching. Other qualifications tended to be specifically focussed on the area being worked in: the most common being library studies certificates and diplomas, and certified records manager qualifications.

It was found that all contractors and consultants interviewed had a strong background in their particular field or a closely related discipline, and substantial work experience in librarianship, archives or records management. The total length of time each interviewee had been working in their field, counting contract, consultancy and salaried work, was found to be between ten and forty years. People currently working within this sector have substantial experience in their field, much of it conducted before becoming a consultant or contractor.

When asked how long they had been operating as contractors or consultants within these fields, replies showed a range of lengths of service. Figure 1 shows the most common length of service is in the three-to-five year range.

Figure 1. Length of time served as a consultant or contractor

The average time worked is currently 7.3 years. This indicates stability for people in this sector, but also shows that for those who are successful and like the lifestyle options it provides, this can be a long-term career. There is a steady progression of people entering the sector, and many of those who enter appear to stay.

It is worth noting that this study does not identify the number of people who enter contracting and consulting work and then leave again within the first year. It is a 'snapshot' view of the industry, and does not take account of movement in and out of the field, but simply shows how it was at a given moment in time. There is also no easy way of identifying those who work briefly in these fields, given that there is currently no single register, directory or professional body uniting them.

Interviewees were asked why they had chosen to undertake consulting or contracting work. There was a wide variety of answers given to this question, and usually more than one answer per person. Replies fell into three broad groups. The first are those particularly interested in this type of work and had deliberately sought it out. Comments included choosing consultancy or contract work because you could 'be in charge of your own work', have variety, freedom, independence, be 'able to make your own decisions' and have 'more control over your work environment'. Some indicated they wanted to do project work, and others wanted the range of challenges and opportunities that this type of work offers. The second group are those who chose this line of work because they did not wish to remain in salaried or other employment. Reasons for taking this type of work included: not wishing to be involved in the politics of an organisation, wanting a change from salaried work, and having been made redundant. The last group are those who chose this type of work because of the conditions and lifestyle contracting or consulting work offers, including flexibility of working hours and the potential for time off between contracts.

The work

A distinction between consulting and contracting work in its pure form was seen by almost all interviewees. Contract work was usually described as a specific piece of work or tasks done at client premises, often locum work, while consultancy is based around giving advice and assessments or providing a professional opinion. Tasks were often seen as more wide-ranging for consultants than for contractors. Although most responses indicated a clear difference between the two, a few commented that in practice there is a 'blurring of the lines' between contract and consultancy work. Many of those involved in this sector undertake a combination of both contract and consultancy work, and it was also noted when doing a variety of work, some will fall clearly into one category or another, while others cannot be so easily categorised.

When describing what type of work or tasks they usually undertook, about half of the interviewees said they stayed relatively within their own area of interest, such as cataloguing, indexing, records management consulting, knowledge management strategies, locum work, training or research. These tended to be contractors or freelancers with specific interests or skills in those areas. Others have found their work has branched out beyond the traditional scope of their specific field. Skills such as project management, mentoring, fund-securing and some types of research extend well beyond the boundaries of traditional librarianship, records management and information management. One consultant observed that for her, the work is 'varied as it is demand driven'. Tasks that some of the consultants are currently involved in include judging business awards, conducting organisational climate surveys, teaching through the internet, creating databases, and co-ordinating consumer health information. The range and variety of tasks appears to be growing.

Figure 2. Choice of speciality

Interviewees were asked which speciality they most closely identified with. Figure 2 shows the responses to this question. An interesting point is that when the choice of speciality is compared with the kind of work or tasks interviewees had said earlier they usually undertook, the correlation is not very high. Although some kept firmly to their traditional area of expertise, many said their 'speciality' is in 'information management' but meant by this that they undertake a range of the other disciplines, and use the term 'information management' as an encompassing description. One interviewee said that the term she identified most closely with was dependent on which client she was currently working with, and that the 'speciality' can change over time.

A surprisingly wide variety of job and position titles is used. Of the twenty-six people interviewed, a total of twenty-three different titles was given. While some prefer to use only one job or position title, several used multiple titles, either depending on what is most appropriate for the type of work being sought or done at the time, or to fit in with the requirements or expectations of clients or employers. Many of the titles seem to be chosen for their market effectiveness, and are more business-focussed than specific to the information industry. A few had not thought about the position title they should be using, and had no firm ideas about what they prefer to use. Titles most commonly used include consultant, principal consultant, director, and librarian (ten to fifteen per cent of responses), project manager and information management consultant (five to ten per cent of responses), records management and archives consultant, records manager, freelance librarian, library consultant, researcher, freelance researcher, information broker, information consultant, consultant in library and information services, information management co-ordinator, knowledge management consultant, event manager, trainer, and problem solver (less than five per cent of responses).

The market

A range of questions was asked about the market in which they operated. The first asked if there was a particular sector they usually work within. A large proportion (seventy-one per cent) of those working as consultants or contractors work specifically within a particular field, and a smaller number have no particular sector preference.

The highest concentration of sector-specific work comes from the government and private sectors. The speciality provided by these consultants and contractors may have a direct relation on whether they target their services to a particular sector, as well as the nature of the market in the area in which they operate. This relationship could be the topic of further study.

Interviewees were asked if they found work easy or difficult to locate. Eighty-three per cent said they found it easy to locate work, with several commenting that there is usually more work than time that they have had to turn down work. Of the remainder, four per cent said the amount of work is sufficient, four per cent find it difficult to locate enough work, and nine per cent find that it varies between being easy and difficult. Several commented that it was easy to locate work within Wellington, but difficult in other centres around New Zealand. A few people make use of downtime between contracts for pursuits such as study, and some are happy to have breaks between contracts.

When asked about how they located work, several commonly-used techniques and avenues emerged and there was also a variety of lesser-used methods. Some interviewees use a variety of methods while others rely mainly on one method. The most common avenues are shown in Figure 3 (see over).

Figure 3: Methods of locating work

Other methods included: advertising, direct marketing, developing strategic partnerships, being known within the industry, answering advertisements on listservs, using an agency, talking with sales representatives, tendering for work, being on various registers, being listed in directories, and going to speaker presentations. One person quoted her mentor, saying that in terms of networking, she had 'lunched her way up the food chain'.

There are several factors which explain this pattern. There are no widely used temping, contracting or consulting agencies operating in these fields, although some are beginning to fill part of this niche now. A few private agents engage in some form of personnel recruitment services, but these tend to be more for permanent positions, than in contracting and consulting work. Another factor is New Zealand's size, which allows networking and word of mouth systems to operate effectively.

Business practice

Questions were asked about how the consultants and contractors ran their businesses: the type of business operation, business name, and location of business premises. The most common form of practice is to run their own business, and only a quarter operate as freelance consultants or contractors. A small proportion are contracted mainly to one employer, but this is the exception rather than the rule.

When asked if they worked as individuals or had established a company or similar business arrangement, fifty per cent said they work as individuals, seventeen per cent operate as sole traders and thirty-three per cent had established their own limited liability companies. An interesting addition to this is that sixty-nine per cent of all those interviewed said they have a business or trading name. Some use their own names as trading names, but many have established different names or titles for their businesses.

Interviewees were also asked about the location of their work. Figure 4 shows there is a mixture of those working at home and those with established business premises. A number of people work in a variety of places, depending on where the work needs to be done. These are generally people who operate from home or work at the clients' premises if the work requires it. Questions were also asked about working with others in varying contexts. Thirty-six per cent of those interviewed employ others or have done so recently, Thirty-nine per cent subcontract out work, and seventy-two per cent work at times in conjunction with others.

Figure 4: Location of business premises

All of these factors indicate that business practice may still be in its infancy here. Mechanisms for establishing business operations are available, and a proportion of consultants and contractors in this area have taken advantage of this, but not all are using or wish to use formal business practices. One interviewee noted that it is very easy to set up a business in New Zealand compared with some countries, such as the United Kingdom, where the process of establishing a business is far more complex. The lack of regulations governing the formal mechanisms for operating in information services in New Zealand means that it is easy to enter the sector. This has both positive and negative effects: it means that entry can be achieved with the minimum of fuss, but also means there are no strict controls over methods of operating or on the quality of business being established. This lack of control over who enters the field is one that may impact on clients, through a lack of or non-adherence to common standards of practice and quality of work.

Standards and codes

Several standards and codes do, however, exist for those working as consultants and contractors. Some relate specifically to working as a consultant or contractor, and others to the expertise or type of work being done. Questions on codes and standards were included in the survey to identify how widely these are known and to what extent they are followed, and what other codes or standards interviewees would like to see developed.

Figure 5 shows that the code most frequently cited is the LIANZA Code of Practice for Consultants, and others were also mentioned. But when asked which codes are actually followed, a different picture emerges. This is shown by the second column of responses, and there is a marked difference overall. It appears that although several relevant standards and codes exist, not all who work in these areas know about them, and even fewer follow them. The reason is unclear, as most professional associations promulgate these standards and codes for members and others to see, and they are freely available. It could be argued that the professional associations may need to consider marketing their standards and codes more widely, but it is also reasonable to expect that those operating within a particular industry or sector would seek out such standards and codes for their own operations.

Figure 5. Standards and codes identified and followed.

One feature that emerged strongly was that of personal standards and codes. These did not feature at all in the first question, but 8 interviewees said that of the standards they did follow, personal standards of work and conduct rate highly on their lists.

A further question was asked on what other standards and codes should be developed, and who should be responsible for developing them. This provided some very interesting data, and also some insights into the respondents themselves. Eight responses were given saying that no other codes were needed. Comments from some of these indicated that there are already sufficient standards and codes, and that the difficulty was not in having them but in everyone adhering to them. Other responses asked for codes to be developed in the areas of records management consulting and ethics, a code of ethics for information management consulting, and several suggested guidelines for pricing and charging.

Several also suggested that some form of accreditation or registration might be useful to guarantee the quality and standard of work of those operating in these areas. This has worked in other industries, but has not been widely developed in New Zealand in our context. The professional associations were seen to be the bodies which should be developing these new standards and codes, and as two of the interviewees noted, although professional associations have developed the existing standards and codes, the size of the consulting and contracting sectors of each discipline is so small that it may not be viable for them to develop further codes. These are areas which can be investigated further.

Professional development and support

Figure 6. Strategies employed to maintain professional development and support.

A range of professional development avenues is used to cater for the needs of this diverse group. No single item scored above twenty per cent, confirming the need for a range of activities rather than a focus on a single aspect. It is interesting to note that professional support centres around listservs, networking and a range of professional associations, all of which have people at the core. It appears to be the interaction and sharing that people in these sectors value, need and seek out the most.

Respondents were asked what other avenues for professional development might be appropriate. A wide range of suggestions was made: some are already in place but not widely known, others have been tried and abandoned, and others may be good future contenders. Suggestions included professional associations running more professional development courses, a listserv (such as the freelance listserv which has ceased operation), courses on running small businesses tailored to this sector, courses on web-indexing and other specific industry skills, and professional and business mentoring. Other suggestions were made for increasing the professional support available, including an association of information management consultants, establishing Australasian courses, expanding library training to include this work, and organising courses in small businesses, negotiating contracts, setting up consultancies, and how to find and create work. Some of these are already available, especially the last few, from sources outside the information services sector.

When asked who should be responsible for creating these development and support mechanisms, there was some disagreement; some thought that the professional associations, teaching institutions and key industry players such as Archives New Zealand should take the lead in providing such opportunities. Others noted that there already exist many opportunities for professional development and professional support, and that it was the responsibility of the individual to find and make use of the existing services.

The New Zealand environment

The first theme that became apparent is the size of New Zealand. Many interviewees said that New Zealand's small size means that 'everyone in the industry knows each other', which is both advantageous, as it makes networking, word of mouth, and building a good reputation very easy; and also disadvantageous, as the industry can be 'incestuous' and competitive. It was also noted that New Zealand does not seem large enough to support agencies which deal with placements in permanent and temporary vacancies in these areas.

Another theme that came through strongly was New Zealand's physical distance from the rest of the world. Again, this was seen as both an advantage and a disadvantage. The advantages included New Zealanders getting more work, as it is often too costly to bring in expertise from overseas. Another factor mentioned is that the time difference between New Zealand and the rest of the world can be exploited to provide an overnight service to clients in other countries. Disadvantages of the geographical distance include having to travel overseas to attend conferences and meetings, and the cost of that travel.

Other comments focussed around the people involved in consulting and contracting, and also about the infrastructure of this sector. Again, interviewees listed both advantages and disadvantages. Some of the comments again related to size. One said that the 'professional infrastructure and bodies are not politically or financially powerful enough to assist contractors or consultants.' Regarding people, comments were made about a 'lack of professional standards' and that in some places there is a 'lack of qualified, experienced people in the field.' But on the other side of the equation, some find it easy to work in New Zealand because 'If you do well in one place, you can get connections to do other work.'

The future

Consultants and contractors were asked where they thought the market is likely to head in the next few years. Seventy-five per cent of those interviewed felt that the future for this type of work is going to expand, with growth in the amount and range of work. Areas predicted for growth include the new tasks developing out of IT advancements: website management, intranet content management, database management, electronic document management, online research, and knowledge management. Other areas for possible growth include overnight research services to other areas of the world, increased archival work to cope with new legislative requirements, and an increase in consultancy work to large organisations where employers may make more use of a flexible skill base they can hire when needed. In contrast, twenty per cent of interviewees believe the amount of work is likely to remain as it is at present, and four per cent believe there will be a downturn in the amount of work available in this area. It was also noted that several believe the work will increase in volume and diversification in Wellington, but will diminish in smaller centres. Interviewees were also asked what they thought their personal future was likely to be within this sector. Sixty per cent of those interviewed indicated they will be staying in consulting or contracting work, with a third of those intending to expand their services. Of the remaining forty per cent, a mixture of replies were given. Some were unsure if they would continue, some were looking for permanent work in information services, a few were moving into other areas, and the remaining few are planning to retire or reduce their work in the near future. Even in the time since these interviews were conducted, several of those who were operating as consultant or contractors in information services are no longer working in the field, and there are several new people who have entered this sector. The market, the work, and the people involved in this area all show degrees of flexibility and fluidity.

Summary

Contract and consultancy forms a small sector within the fields of librarianship, records management, archives, information management and knowledge management in New Zealand. It has some interesting parameters, and equally interesting people working within it. There is a tendency for consultants and contractors to cross the traditional boundaries of their first 'speciality' and move into other areas. New Zealand provides a unique environment, and this sector has adapted itself well to the market and opportunities available here. Although there are some parallels between New Zealand contractors and consultants and those in other countries such as Australia and the United Kingdom, New Zealand has some unique ways of operating and in the range of work being done. Consultants and contractors in librarianship, records management, archives and information management provide a much needed service within their traditional areas of expertise, and are also expanding as a group into the wider information business to fill a role with an increasing range of tasks.

Recommendations

Wider promotion of the consulting and contracting sectors could be undertaken: increasing the awareness of students and the wider professions by the associations, co-ordinating professional development, and providing more networking opportunities. This is already happening to some extent, but the opportunity exists to create more awareness, development and networking than is currently the case. Consideration could be given to establishing an association of information management consultants in New Zealand, although there is already a wide range of associations for the disciplines involved. A possible alternative is to establish a special interest group within one of the existing associations.

There exists a need for a single directory of consultants and contractors; a single listing would provide easy access for the consultants, contractors, their clients and potential clients, plus others involved in these disciplines. Registration or accreditation may help identify people who have attained a certain level of expertise within their profession, and is potentially beneficial to the consultants, contractors, and their clients. A need has been identified to promote greater awareness of standards and codes which clearly need to be promoted amongst the consultants and contractors, amongst others sharing their expertise, and also amongst their clients and potential clients. New Zealand's consulting and contracting sector in information services may also have similarities with equivalent sectors in other countries or with contractors and consultants within other fields and disciplines. For more detailed comparisons of this sector with others, it may be useful to conduct follow-up surveys to obtain more data. The three most obvious options are:

• conduct this same survey again in New Zealand in five or ten years' time to note what changes have occurred;
• conduct a similar survey on related disciplines in New Zealand to see if the experiences of those working in the information management sector have parallels with those in other fields;
• conduct a similar survey in Australia using either this model or the one used by Frey in 1985 to identify what changes have occurred and what comparisons can be made between New Zealand and Australia or within the Australian sector in the last fifteen years.

Bibliography

Broadbent, M and Kelson, D (1984) 'Information brokers in Victoria: doing what, for whom, and how.' Australian Library Journal 33 [4] 1321.

Code of Practice for Information Brokers (1993) [Luxembourg]: European Association of Information Sciences, EIIA, European Information Researchers Network, with the support of the Commission of the European Communities.

Debons, A et al. (1981) The information professional: survey of an emerging field. New York: Dekker.

Frey, Christine (1986) Information consultants and brokers in Australia: report of a national survey conducted in November 1985. [Hobart]: University of Tasmania.

Kelson, D (1983) A study of information brokers in Victoria. Paper submitted in partial fulfilment of the requirements of a Bachelor of Social Science (Librarianship). RMIT.

Maranjian, L and Boss, R (1980) Fee-based information services. New York: Bowker.

Warr, Karen M (1992) Paying for business information: the role of UK information brokers and consultants as providers of business information. Humberston, Grimsby: Effective Technology Marketing Ltd.

Biographical information

Alison Fields is a senior lecturer in Information and Library Studies at The Open Polytechnic of New Zealand. She has also worked as a librarian at a number of public, tertiary and special libraries. E-mail alison.fields@openpolytechnic.ac.nz or phone +64 3 546 7973.