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| CURRENT SECTION :: Market Reports | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
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The last three months have thrown up some stories that should have IT contractors tapping their keyboards with glee. The troubles of HM Revenue and Customs are likely to see those with security and data warehousing experience in the public sector find themselves more in demand. And all the careless overspending ahead of the London Olympics could be good news too. But the flip side, of course, is the troubled financial industry and the knock-on effect this is likely to have among employers in all other sectors. Perhaps this is to blame for the pessimism that has seen contractor rates across the 10 most commonly requested roles slip back, from £33.28 in September, to £30.36 now. This fall, based on figures from www.itjobswatch.co.uk, marks the end of a promising period of rising rates through the spring and summer. It is a drop of nearly 10% over three months. Much of this tumble may be linked to broader economic concerns. The financial sector often sets trends which affect contractors in other industries, and demand in the sector is at its lowest for three and a half years, according to figures from the umbrella company, giant group. Of 1,500 contractors surveyed by the firm, only 22% now work in the financial sector, compared to 25% in the previous quarter. Managing director Matthew Brown notes that, ‘the advantage to City institutions of using IT contractors is that they are a very flexible resource.’ So, when times are good, the City can offer a wealth of work, but the slightest wobble can see contractors shed very quickly. But, on to more promising news. This nervousness among employers could actually drive rates up. Atsco has recently released figures (in conjunction with www.skillsmarket.com), which claim that market uncertainties are dissuading IT staff from moving jobs. Of 5,000 tech staff questioned, just 28% were considering a job switch last month, compared to 42% in quarter three. As Ann Swain, chief executive of Atsco, points out, ‘demand for IT skills is still high, so if people are reluctant to change jobs, employers may need to offer more generous packages in order to get the skills they need.’ And, while contractors in the financial sector may be feeling the squeeze, other areas are taking up the slack. The research by giant group also found a surge in the number of techies in the engineering and construction sectors. Some 10.2% of IT contractors now work in this field, compared to 6.3% a year ago. Brown reckons much of this is tied to London 2012, as ‘programming skills are required during the design phase of Olympics projects. Software engineers will build computer models and run simulations to stress test every structural part before construction can begin. The computer modelling is incredibly exhaustive because engineers need to know designs will work years before they are actually built.’ Commenting on the results of his group's survey, Alex Charles, the founder of SkillsMarket, noted that, ‘companies are still struggling to recruit good permanent IT staff and as a result are having to take on contractors.‘ And so, as the New Year approaches, what will those companies want their contractors to do? Work with SAP, according to one jobs website. Anthony Sherick, a spokesperson for Technojobs notes that the firm has seen, ‘a constant and strong growth in SAP related jobs advertised, and particularly SAP contractor jobs. SAP skills and experience are amongst the most sought after in IT’. And another recent set of figures, from IT Job Board, which surveyed 50 large employers in the UK, has found that more than half of those surveyed planning to increase their graduate hiring numbers in 2008 and a further 36% planning to keep their hiring at the same level as this year. While this is news that is unlikely to move contractors, it is at least a sign that money is still being spent. The website www.jobstats.co.uk actually notes a small rise is average rates since the last quarterly report, back in September. Its figures are based on a much smaller sample than those collated by itjobswatch, but the numbers are interesting. It found that the rates of jobs advertised in its four rate bands (an average of the rates offered by the top 10%, 25%, 50% and 75% of jobs) had all nudged up by 1%. Half of contractor roles advertised, the site claims, offered more than £37 per hour in October this year. And, the silicon.com survey mentioned in last month’s report , noted that 45% of employers have IT jobs in their business they are unable to fill. So, there is some hope for 2008, and there’s nothing in the numbers above that should be daunting enough to affect your Christmas. Matt Farquharson Dec 5, 2007 Email this article Printer friendly page Previous Page
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