As the roles within the technological world continue to expand, contractors with in-demand skills can demand higher salaries. While this is a positive trend for contractors themselves, it can leave both businesses and recruiters in a tricky situation.
According to UK statistics from Computer People’s latest IT Monitor survey, there are many occupations within the IT contractor world that have grown in demand and salary over the last quarter.
Of course, with the UK contracting market slightly more mature than the Australian counterpart, it is always important to look at what is happening in the Northern Hemisphere and predict trends that could occur here soon.
High demand, high salaries
Based on the IT Monitor survey, application analysts are demanding the greatest salary in the contracting world. Between June 2014 and June 2015, salaries in this area grew a staggering 26.61 per cent with vacancies rising 9.66 per cent over the same time.
Salaries in senior management positions also expanded considerably (11.62 per cent), according to Computer People. Despite the fact that vacancies actually decreased during this period, it is easy to see why contractors can demand such as high wage.
Other IT contracting areas of note included tech support (up 7.53 per cent) with almost 13,000 open positions in Q2, business intelligence (7.21 per cent) and web development (6.86 per cent).
Computer People’s Managing Director Roy Dungworth explained the UK is currently moving through a skill shortage in the IT industry and these high salaries are actually blocking many businesses hiring the professionals they need.
“While the demand for contract staff we witnessed during the recession, as companies juggled short-term needs and lack of long-term confidence, appears to be dropping off, the IT sector continues to use flexible, contract employment to fill immediate gaps in strategic skills,” he said.
“Further proof of this comes from the steady growth of daily rates, which are currently outperforming advertised permanent salaries.”
It will be interesting to follow how UK IT contracting salaries change in the months ahead.
The Australian perspective
At present, IT contracting hourly pay rates are actually decreasing, according to the Information Technology Contract and Recruitment Association (ITCRA). Based on its Q2 report, Queensland, Victoria and NSW all saw drops over the last three months.
With the balance between permanent and contracted roles very fine, ITCRA reports these hourly rate drops are unexpected.
Contact us to find out more about how we can help you take advantage of the rise in contractor rates in the UK!
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