Growth in demand for IT professionals has declined for
the first time in two years, and there are indications that the
jobs market may be feeling the impact of software development work
moving offshore, according to the latest Computer Weekly/SSL
Quarterly Survey of Appointments Data and Trends.
The number of jobs advertised online fell by 6% during the
second half of 2005 - the first decline since October 2003 - the
survey revealed. At the same time, advertised salaries have fallen
in more than half of the job categories monitored by SSL over the
past six months.
The study confirmed the development of a two-speed economy in IT
skills, in which demand for basic skills in the UK is waning, while
IT professionals with business skills are at a premium.
"Except for those who have got skills that are in short supply,
such as project management, business understanding and multimedia
skills, we will see a permanent shrinking in demand. If it can be
moved offshore it is moved offshore," said Philip Virgo, strategic
adviser at the Institute for the Management of Information
Systems.
More IT employers are outsourcing basic development and
programming work overseas, reducing demand for these skills in the
UK, said Anne Swain, chief executive of the Association of
Technology Staffing Companies.
"Offshore outsourcing has affected the junior jobs. A huge
number have been taken out of the profession," she said.
System developers and programmers have born the brunt of the
changing market, with the number of advertised jobs falling from
36,000 to 35,000 between the last two quarters of 2005.
This downturn coincides with an increase in the number of work
permits being awarded to overseas IT professionals, which rose by
15% to 21,448 in 2005 - double the number issued five years
ago.
But demand for IT professionals with sector-specific business
skills is expected to remain strong, with the finance sector
experiencing a mini boom.
"This makes updating workforce skills particularly important.
People really need to have their skills fine-tuned to have skills
that are in demand and match those available overseas," said
Virgo.
Recruitment firms have yet to feel any impact from offshoring,
as they experience strong demand for staff with business
skills.
"Demand at the lower level could be stagnating, but at the
higher level, people are getting six or seven job offers. Niche
skills are in demand. For any form of SAP, clients are paying good
fees and salaries," said Brett Budden, director at Computer
People.
Simon Wassall, European managing director at Harvey Nash, said
demand for staff had risen by 20% over the past year. The finance
industry, oil and gas industry and ISP sector are recruiting
developers heavily, he said.
Salary survey: Consultants sitting pretty