IT contractors to 'jump ship' for better rates

Recovering pay rates in pockets of Britain's computer jobs market could leave client organisations in the lurch, as contract IT staff look set to 'jump ship' for more money.



Speaking to CUK, IT recruiters said contract candidates would be, or were already, looking to take advantage of rising demand continuing to push their rates upwards.



Although public and private sector rates are not universally up for all IT skills, the agents say projects in both sectors are vulnerable if the market swing in the candidate's favour is ignored.



The clients at risk of losing out to a higher bidder hired their IT contractors last year "on the cheap", when contractor numbers were high but demand for their services was low.



Software developers, in particular, were taken on cheaply, added IT recruiter Arrows Group, serving to create a "false bottom" in the market for how much such skills commanded.



The IT contractors even more likely to now be readying a move to a better-paying client are those who last year accepted a 'take it or leave' rate reduction, particularly if it is still in place.



Ranging from between 5 and 25 per cent, the pay cuts were presented at the time as a necessary contribution contractors could make to help the client outfit through the downturn.



"Now that the demand is returning, this kind of approach may 'come home to roost' with IT contractors opting to move to other [richer] projects/clients," said Philip Fanthom, managing director of Jenrick IT.



"How well the [client] organisation treated contractors when recession hit" will be "key," he said, in helping contractors decide whether they now wish to stay with that organisation or not.



Many won't, hinted Bernie Potton, the managing director of IT recruiters SQ Computer Personnel: "There is no loyalty to a client that has itself cut rates mid-term, [or at] at contract renewal time mid-project.



"The increase in demand as the market improves will certainly result in contractors who have had their rates cut, sometimes brutally and excessively, jumping ship mid-term for more money."



The problem, he explained, is that while clients are usually fairly quick to cut rates in a downturn, they are "notoriously slow" to reverse them in a recovery, as contractors insist.



"It's a difficult message for any agency to get across to its clients," Potton said, "because we obviously gain ourselves when rates increase and are therefore viewed sceptically when we suggest it."



However, money is not the only factor for clients seeking to retain key IT roles and attract quality techies, said Arrows Group, although it is more critical to contractors.



Group technology manager Charlie Sells urged end-users : "Commit to training, pay reviews and invest in the technology that your people are using to make staff feel valued."



The buzz of a project is also a pull factor, Jenrick explained, even though contractors who recently entered the public sector for "exciting projects and technology" may now be reconsidering their positions, given that spending cuts are incoming.



Potton confirmed: "We have already started to notice a trend in contractors currently in the public sector sending their CVs around to find different roles. Perhaps they have already, internally, got wind of cut-backs and project cancellations."