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Pay rates for IT contractors in financial services have fallen to their lowest level for five years and for the first time in the City since the dot com bust. The bleak market reading is the first proof that the credit crunch has hurt financial IT contractor rates, say its authors, the Association of Technology Staffing Companies. Its survey with iProfile of 4,500 IT contractors found hourly rates in the sector fell 12 per cent in six months to £44, compared with £50 in the final quarter of last year. ATSCo said lower rates were being fixed on new contracts, rather than being cut mid-contract, though such To cut their costs, the group said banks had begun “shelving projects not expected to deliver an immediate return on investment,” resulting in less work for jobbing techies. “Falling demand for IT contractors from banks is now impacting pay,” said ATSCo’s chief executive Ann Swain, who believes mass contractor layoffs are unlikely. “What we are seeing is a move away from the candidate market of the last few years as the ratio of contractors to jobs Contractors are aware that A survey of IT contractors working in the UK, US, Hong Kong, Australia and Singapore shows that just 12 per cent expect their pay to rise over the next 12 months. More than three quarters (76 per cent) of the contractors quizzed by Alexander Mann said that when considering a new assignment the pay rate was now the most important factor. ATSCo said contractors skilled in risk management and compliance systems were the best placed in the sector to avoid rate reductions, as their skills were in high demand. Pointing to ongoing consolidation in financial services, the group also said post-merger integration of IT systems would generate demand for contractors with suitable skills. According to its records, the fall in average rates for financial IT contractors is the first since the credit crunch began in August last year and the first fall in the City since 2002. However, whether or not the belt-tightening will spread to other IT job sectors remains to be seen, as average rates for non-financial IT contractors were static at £40 an hour. Oct 7, 2008 Email this article Printer friendly page Previous Page
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