Top management consultancies have become the most lucrative places
for IT professionals to work, overtaking banks as the highest
payers, according to research by the Association of Technology
Staffing Companies (Atsco).
The trend for organisations to outsource major IT projects to
management consultants such as Accenture, IBM and EDS has pushed up
demand from consultancies for skilled IT staff, and driven up rates
of pay, said Atsco.
Permanent IT staff in consultancies can expect to earn an average
of £44,000 a year, compared to an average of £36,000 for those in
financial services.
Freelance rates average £50 an hour in consultancies, compared to
£43 in financial services, Atsco found.
"Talented IT professionals used to view the City as the source of
the best jobs, but with big-ticket projects increasingly being
outsourced, the high-paying work is often now with consultancies,"
said Atsco chief executive Ann Swain.
The biggest pay differentials are between consultancy staff working
on public sector projects and those working in the private sector.
Compared to the big bucks on offer in the consultancies, permanent
IT staff in the public sector earn an average of £25,000 a year,
and contractors £38 an hour.
Financial services companies are expected to outsource more major
IT project work to consulting organisations over the next 12
months, fuelling further demand for skilled IT staff, said
Atsco.
The demands and pressures on IT departments have grown as they
embark on more bespoke projects, making outsourcing more
attractive, said Swain.
"When a bank begins a major IT project from scratch, it is often
reinventing the wheel. A consultancy is likely to have far greater
experience in that area and is usually prepared to carry the can if
things go wrong. It often reduces risk if you bring in a team with
a proven track record."
The UK outsourcing market is forecast to grow to 24% of the total
IT services market this year, up from 15% in 2002, according to
Ovum Holway. This will mean it is worth a total of £10.5bn.
However, some financial services organisations have bucked the
trend by taking IT projects back in-house. JP Morgan recently
announced it would be cancelling a £2.8bn outsourcing contract with
IBM.