New technologies and surging demand from the public sector will keep upward pressure on rates throughout this year, as new opportunities emerge across the board. There will be strong demand in every technology and skill set, forcing growth in the IT staffing market of up to 10 per cent.
This will coincide with the continued growth of Managed Services and Outsourcing, but high levels of staff demand will help save professionals from the perils of offshoring.
The most skilled IT contractors are expected to be sought after by domestic and international telecoms companies.
Likewise, web skills and software testing are tipped to be among the most lucrative areas for contracting, as companies continue to integrate the Web into how they do business.
“In 2005, we anticipate that the IT staffing market will grow between 5 per cent and 10 per cent, with pay rates for IT contractors and permanent staff growing by more than 5 per cent,” said William Grubbs, chief operating officer at Spring UK.
“[This is] significantly above the current rate of inflation and above the anticipated UK employment average of 3 per cent.”
Spring told CUK that with a General Election looming, there is likely to be a curbing of the legislative threats against contractors, combined with a “huge opportunity” from the public sector.
“All in all, it [2005] should be one of the best years we have seen in IT staffing since the late 1990s.”
Meanwhile, public sector specialist, Parity, agreed that demand would continue apace in the public sector, if the Government intends to stick to its commitments.
The IT group said recommendations from two legislative reviews to cut staff numbers in the interest of efficiency, would force some interesting choices.
“Whilst initial proposals on how Government departments will deal with the Gershon and Lyons review are promising, the actual impact is yet to be seen,” said Alan Rommel, Director of Government Division at Parity.
“It will be impossible to maintain levels of services with fewer staff, without significant investments in technology.
“Add in the additional requirements taking the Freedom of Information Act and e-Government targets, and we expect shortages in Government IT capability to continue.”
For 2005, skills tipped to be in demand for both permanent and contract professionals tend to be the more project driven roles.
IT contractor specialist, Jenrick CPI, said the highest rates for contractors in 2005 would go to Project Managers, Business Analysts and Test Analysts.
Those professionals skilled in new technologies - J2EE, WebLogic, and .NET - are also tipped to be the high-earners of 2005.
Skill sets that include high skilled tech systems support and administration will likewise be popular, with clients preparing to offer competitive rates.
The recruiter told CUK that the IT market has effectively “turned the curve” in 2004, with a once ‘client-driven’ market now entering a ‘candidate-driven’ era.
“Should the current trend continue, indicators show that the recruitment market will be in a similar situation to that of 1999, where there were too few quality candidates and a high demand from clients,” said Jenrick.
“We can only attempt to predict the future market based on past trends. But as things are cyclical, this would indicate a sharp rise in the contract market, increasing contractor rates and decreasing numbers of IT professionals in the permanent market.”
The contract specialist cited media and Government reports that suggest a hiring spree in the City is imminent, with plans to recruit about 27,000 new professionals over the next two years.
Quelle: Contractor UK, 12.01.2004
