Mike Johnstone started Sourcing Partnerships in 1998 to win work on the Y2K problem, but found himself doing more general IT consulting work. Johnstone noticed that software companies had their corporate clients “over a barrel”, charging inflated prices for low-level work. His company now competes by using a network of 300 contractors as well as its 30 permanent staff. Sales at the Edinburgh company grew 135% a year from an annualised £3.1m in 1999 to £17.4m in 2001.
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