UK tech contractor hiring outlook for H2 2025

As the UK economy continues to grapple with persistent inflation, geopolitical uncertainty, and sluggish productivity growth, businesses are reassessing how they structure and allocate their resources – and we believe contractors in IT will be allocated a key role at the talent table, writes Steve Sully, regional director at UK recruitment agency Robert Half.  

A strategy shift, just as shortages cause sleepless nights at UK plc

At the same time as these strategic shifts, a significant proportion of employers (64%) have expressed concerns to us about their ability to address widening skills shortages.

A further 61% admitted apprehension over maintaining momentum on “business-critical projects” under current conditions.

With these challenges combined, six in ten organisations have admitted they have fears about sustaining operational continuity throughout the remainder of 2025.

Almost eight in 10 plan to increase tech contractor/project-based headcount

In the IT space in particular, the answer to such challenges increasingly lies not in solely adding permanent headcount, but in engaging a new kind of highly skilled and strategic interim, temporary, contract professional.

Our findings here indicate end-users were onto the trend before us. In fact, just over a third (34%) of UK companies intend to increase the use of contractors in 2025. And in technology specifically, the intention is extremely strong, with 79% of IT managers planning to increase contractor or project-based headcount.

‘Super contractors’ offer 'LAD' – Leadership, Advisory & Delivery acumen

Despite the clear pain points over the last year or so for some freelance technologists, our IT recruiters have seen the emergence of the “super contractor” -- senior tech specialists who bring not only niche technical skills, but also provide:

• Leadership;
• Advisory, and;
• Delivery acumen.

This trio has been bolted on to some IT contractors’ services offerings even though it is traditionally associated with top-tier consultants.

No talent gap-filling for super-contractors

Super-contractors tend not to be interested in merely filling talent gaps. Instead, they prefer (and indeed are sought out) to drive transformation, shape strategy, and provide their end-users with a competitive advantage.

This evolution of the IT contractor is not happening in a vacuum.

Permanent staffing models incur higher employment costs

Organisations are grappling with the rising cost of full-time employment. Salaries, pensions, National Insurance, benefits, training, and onboarding -- they all contribute to a significant overhead.

In today’s economic environment, permanent hiring has become a more strategic and scrutinised investment. It’s no longer about growing teams for scale. Instead, it’s about building the right blend of core capability and flexible expertise to respond to change. Interim, non-permanent specialists are often the fastest route to that outcome.

Pressure on tech hirers to modernise is relentless

Technology is where this shift is most pronounced.

Digital transformation is now business-critical. Whether it's cloud migration, automation, cybersecurity, or deploying AI responsibly, the pressure to modernise is relentless.

And while businesses continue to value loyal, long-term rank-and-file staff, the pace of change means they must also access skills they don’t have in-house and can’t afford to wait to develop.

Top four scarce IT contractors who we/end-users can’t get enough of…

Against this backdrop, the UK’s digital skills gap remains a challenge. Versus the level of current demand (June 2025), we’re seeing too few experienced Contractor:

1. Enterprise Architects;
2. Data Engineers;
3. Cyber specialists, and;
4. DevOps professionals.

We believe it’s more than just a recruitment problem, it’s a capability crisis. That’s why IT contractors, many of whom have worked across multiple industries and different sectors, are being regarded as valuable. Their USP is about their experience -- yes, yet beyond ‘just’ technical skills, they can start tomorrow, delivering tangible results from day one.

Top 6 risks for Technology and Media organisations include…

Our enterprise-wide Top Risks and Global Finance surveys found adoption of digital technologies requiring new skills as being in 'critically short supply,' ranking this dearth among the “Top 6 risks for Technology and Media organisations” this year.

As a result, we are also seeing a mindset shift at the top of organisations.

Top brass is making room for IT contractors offering advisory/consultancy

Boards and executive teams are no longer looking at ‘Digital’ purely as a tech issue, but more as a business risk and a growth lever. This has made room for contractors who can not only execute but also advise.

Former CTOs, transformation directors and product leaders are operating as independent specialists, brought in to lead change and coach internal teams as part of their remit.

Like hiring pauses, postponed projects won't deter the forward-thinking from contractor hires

At the same time, and as we saw in the context of ‘Big Tech' lay-offs, companies are running leaner than ever. Whether by design or necessity, many have reduced layers of management, paused hiring, or postponed major transformation plans.

And yet, competition, especially from born-digital challengers, hasn’t gone away. To remain competitive, the most forward-thinking hirers are already tapping into the contractor market not as a stopgap, but as a way to bring in fresh talent fast.

IR35 continues to be a pain point, but…

Compliance continues to be a key consideration. But while still a source of complexity, IR35, in the eyes of some decision-makers, has helped regulate the contracting landscape.

Rates have matured a btit too, insofar as those limited company contractors working inside IR35 can now command day rates that still reflect the instant value a niche technologist can add.

Three inside IR35 tech contractor roles doing rather nicely

Such inside IR35 contractors often enjoy both greater autonomy (than internal staff) and increasingly attractive earnings.

At the upper end, inside IR35 rates of between £800 (and even up to £1,200) a day are not now uncommon, particularly for roles in:

• Cybersecurity;
• Data platforms, and;
• Enterprise technology implementation.

The very upper end -- £1,200 a day -- tends to be reserved, however, for: 

• Fractional CFO;
• Interim CFO, and
• Transformation Directors.

More importantly, contracting is no longer a fallback. It’s increasingly known to be a career choice. It offers variety, impact, and freedom. In my own recent hiring experience, I’m seeing experienced IT leaders stepping out of permanent roles not because they have to, but because they want to. Often, it’s because they see the opportunity to make a difference across sectors.

TLDR: Tech contractor hiring outlook for H2 2025

As we move into the second half of 2025, my sense is that IT contractors will play an increasingly critical role in shaping how organisations evolve. Businesses need to be nimble, outcomes-driven, and digitally mature.

Contractors, especially those with strategic capability beyond their technical nous, will continue to be a key enabler of that shift. The question for many company leaders now is not whether to engage them, but how best to integrate them into a long-term talent strategy.