Hays sees IT contractors benefiting from permanent team shortages

Cyber security and software engineering employers are failing to staff-up the permanent teams they want, much to the benefit of suitably skilled contractors, a recruiter says.

In its new rate guide, Hays shares three examples of employers falling back on contractors after being unable to install software engineers and security staff on a full-time basis.

Nowhere is this trend of resorting to contractors more visible than in the FinTech space, indicates the FTSE-listed recruitment company's 2019 guide, obtained yesterday by ContractorUK.

'The preference' is for perm

Both inside and outside the London-dominated space, “the preference for many organisations is to maintain a permanent team of cyber security professionals.”

But “a lack of professionals with the required skills means many continue to turn to contractors”, for whom – overall in IT – rates are up annually by 2.8%, adds the guide.

Turning to FinTech, and returning to the specific area of IT Security, Hays says that “many organisations” now “prefer to put permanent teams in place.”

'Elevated' day rates

But in Investment Management, very senior contractors are pocketing “elevated” day rates to fill Head of IT Security roles – up to £1,000 – until the desired full-timers can be found.

Elsewhere inside of Financial Services (FS), building in-house teams of permanent software engineers has become “a priority,” the recruitment company says.

Yet its guide adds that “contractors remain sought-after for a number of reasons” including appetite for AI and machine-learning skillsets, and front-end roles, notably at large banks.


These banks are keen to invest in digitalisation projects to improve their customer offering, reflecting a trend in FS of IT-rich projects gaining ground on “regulation-driven” projects.

Further increasing IT contractor demand are infrastructure projects, which Hays says need DevOps contractors, especially those offering Automation, to help the transition to cloud-based services.  

The London section of the rate guide puts DevOps Engineers on up to £700 a day; and Front-End Developers and Security Architects at the capital’s banks on up to £800 and £850 a day, respectively.

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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