IT contractors are not expecting a cull in the
financial services sector despite the economic slowdown.
According to research from contractor services provider
giant group, IT contractors
believe that any job cuts in the financial services sector over the
next 12 months will not come close to the levels of those in 2001,
the last downturn.
The research shows that the proportion of IT contractors
expecting the best job opportunities in the financial services
sector has fallen only slightly over the last 12 months, from 26%
of all contractors to 24%.
Contractors are still most confident of job creation in the
financial services sector compared with other sectors of the
economy.
Financial organisations have managed their IT skills much more
efficiently since the last downturn, according to giant group,
"leaving less fat to trim this time around", so the expectation of
mass lay-offs is more subdued.
Matthew Brown, managing director of giant group, said, "The
financial services sector in the UK is one of the most important
users of IT skills, and there is no sign of panic among
contractors. Few are expecting a repeat of the mass bloodletting we
saw in the 2001/02 downturn.
"Organisations have been much more restrained in their hiring
post-dotcom boom and crash, and have offshored a lot of their
skills base since then, so the UK contractor resources they
currently have are leaner and less susceptible to cost
cutting."
He said there is often robust demand for contractors during
challenging economic conditions as organisations put off hiring
permanent IT staff.
He added, "Some IT projects that will not yield a short-term
return on investment are being given a lower priority, but the
market hasn't fallen off a cliff by any means."
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