IT contractors are starting to enjoy a greater choice of contracts and increasing rates because of skills shortages, which are emerging as organisations increase IT infrastructure investment.
“We are seeing a significant increase in demand for IT professionals, with skills shortages in some areas now becoming widespread,” explains Ann Swain, Chief Executive of the Association of Professional Staffing Companies (APSCo). “Candidates with niche, in-demand skills are receiving multiple job offers and double-digit pay increases for switching roles are now commonplace.”
Demand for IT contractors has surged by 28% year-on-year, with 90,416 new IT jobs posted in May 2011 compared to 70,912 in May 2010, according to the new Monthly Trends Report from APSCo.
The surge in demand is being driven by compliance initiatives in financial services firms, media investment into new technology platforms and retailers seeking to diversify into ecommerce. And, according to APSCo, client organisations are starting to resume projects halted due to the recession as they aim to boost productivity and gain competitive advantage.
“It makes sense that businesses are investing in technology, having reined in spending during the recession,” continues Swain. “IT is seen as key to boosting competitive advantage, so IT directors are increasingly keen to push the button on projects, which will deliver significant productivity gains.”
The new Monthly Trends Report report is compiled by Innovantage and Staffing Industry Analysts on behalf of APSCo. According to John Nurthen of Staffing Industry Analysts, IT contractors with online and mobile skills are in particular demand: “Retailers are adding functionality to e-commerce platforms, such as enabling customers to shop online via mobile devices or through third-party marketplaces. Candidates with ecommerce experience are commanding a substantial premium for their skills.
”We are also seeing an increase in demand for IT skills from media companies. This is being driven by consumers increasingly accessing content via the web. Media companies, from newspapers to music publishers, are responding by adding new web functionality.”