IT contractors keep faith in financial services

IT contractors are increasingly confident about their job prospects in the financial services sector over the coming year, seemingly aware that banks and insurers are stepping up demand for temporary IT skills.

Issuing the verdict, Giant group said that almost a third of IT contractors think the City-dominated sector will create the most work for them over the next 12 months, compared with 28% this time last year.

Explaining the vote of confidence, the group pointed to research showing financers are setting aside more for IT – the CBI found an uptick last month, while Ovum believes European retail banks will increase their investment by 19 per cent.

Such banks are under regulatory pressure to improve risk monitoring and to ensure their transactions are more transparent, Giant said, while others are turning to IT for extra efficiency or expansion online.

Further impetus is thanks to insurers facing the Solvency II deadline and from other financial outfits taking mothballed projects and programmes off the shelf, said Giant’s Matthew Brown.

“Banks pulled the plug on a lot of IT projects during the recession, but are now ramping up spending again as they play catch-up,” he said. “In areas where banks expect to make significant productivity gains, such as cloud computing, demand for IT skills has risen sharply.”

In another sign of good health for the IT sector, a higher proportion of contractors are opting for higher hourly pay over long term contracts. Thirty-seven per cent now prioritise higher hourly pay, compared to 34 per cent this time last year.

The majority of IT contractors (63%) would still prefer a longer term contract, however - “not surprising”, Mr Brown said, “given the uncertain [economic] climate.”