IT contracting is turning a corner as budgets are increasing and senior decision-makers are investing in new teams. Only one in ten IT directors are considering cutting contractor numbers, compared to 20% a year ago.
This is according to research by recruiter ReThink Recruitment, which shows that confidence is increasing in the sector and organisations are investing in IT upgrades across the board, not just in ‘hot’ areas such as mobile and customer apps.
“Confidence about what 2013 holds in store has spread throughout IT departments,” explains ReThink Recruitment director Michael Bennett. “Factors that tended to make IT directors cautious last year…have subsided. Businesses are now hoping to bring years of IT job cuts or headcount freezes to a close and are ready to invest in their IT departments again.”
The number of IT directors looking to make cuts has fallen to a quarter, compared to a third last year. And just under a half of IT directors are expecting their budgets to increase during 2013, up from 39% in 2012.
“The importance attached to IT departments has grown enormously since the financial crisis,” continues Bennett, “but paradoxically this has not been matched by growing IT investment. IT spending now looks like it has turned a corner.”
Decision-makers are increasingly concerned about talent shortages, and Bennett highlights the inevitable result of constricted supply: “Salaries and headcount are beginning to move upwards following a long period of restraint.
Confidence about what 2013 holds in store has spread throughout IT departments
Michael Bennett, ReThink Recruitment
“IT directors will be concerned about the depth of the talent pool available to fill the new roles being created, particularly when these roles involve newer technologies, such as app development or cloud computing.”
In turn, skills shortages may lead to increased rates, and a possible surge in contractor numbers as permanent employees review their options. Bennett explains: “67% of IT directors expect to increase pay next year, up from 59% last year, and just 47% the year before.
“IT departments may struggle to hold onto staff that have put up with years of pay freezes and who could be easily tempted to move elsewhere by the offer of a better salary.”