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| CURRENT SECTION :: Market Reports | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
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Spring is a time for enthusiasm and excitement. As the nights lengthen and the layers come off, IT contractors have traditionally benefited. A great many firms set their budgets to the financial year, giving Programme Directors and Project Managers new funds to play with. Those that run to the calendar year tend to have enough left to compete. People are yet to begin sloping off for summer, and productivity is normally high. It can often be a good time to look for a new contract or renewal. But, the April IT contract market is failing to meet the promise of the unseasonably good weather. As in each previous month of this year, average contractor rates across the ten most commonly requested skills have edged downwards. From last month’s £30.07, they’ve fallen again, to £29.85. The drop is miniscule, but given the time of year, and ongoing sluggishness of rates, it is disconcerting. It is a trend that contradicts many brighter indicators in the market. Last month this column noted Atsco’s assertion that rates for consultants have risen 17%. This month, it’s Harvey Nash that brings the good news. The firm released its 2006 trading figures earlier this month, and finds itself in rude health. Among the increases in revenue and pre-tax profits, it said that through the end of 2006, “demand accelerated…and the excellent run rates continue into the current year. Trading in the first quarter has been strong with the excellent run rates from last year continuing.” Harvey Nash, as one of the biggest players in the IT contract recruitment market is a reasonable indicator of the industry’s buoyancy. But, it’s also quite feasible that their performance is extraordinary given the sluggishness for rates themselves. The areas that continue to pay well, and have been rising slightly this year, are those that require a little more business acumen than straight technical nous. Our own figures support Atsco’s claims from last month, showing a 14.32% rise in rates over the last 12 months for those that can tag ‘consultant’ onto their title, from £30 to £34.25. Project Managers have also done well over the last year, with rates rising almost 10%, from £36 to £39.98. It’s further evidence of the contractors’ need to offer a little more than pure technical knowledge. Of the straight skills doing well, .NET and Java development roles continues to do well. As highlighted in January, .NETers have seen 2007 start promisingly and that continues. The average developer has seen their rate go from £ 30.77 in January, to £31.36 today. But, it’s also where you work that makes a difference. Think London , an agency charged with bringing foreign investment to the capital has released figures, which claims that the IT market in London is worth £27 billion, with annual growth of around 6%. This makes it the top city in Europe for IT and telecomms skills. Our own stats show that the capital claims around half of all advertised jobs, and the real figure is likely to be much higher, as this excludes those where no location has been given. The capital remains the place where money is to be made. An analyst on a day rate in London will find themselves collecting an extra £50 per day to one anywhere else in the UK, or £466 rather than £416. While market flatness at this time of year is worrying, smart contractors will still find ways of cashing in. Matt Farquharson Data source: www.itjobswatch.co.uk Apr 25, 2007 Email this article Printer friendly page Previous Page
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