Although full-time interim IT managers commanded the third highest average daily salary by industry sector at £505 per day in the six months to December 2003, this was down from £550 in the previous period.
The figures come from a survey of more than 5,000 executives at UK companies, conducted by Russam GMS, a supplier of interim IT managers.
The pay slump for interim IT managers was more severe than in any other industry sector apart from human resources. Only interim managers in finance and general management saw an increase in daily rates.
Since 2000, interim managers' rates have fallen from a peak of £1,500 in the run up to Y2K.
Charles Russam, chairman of Russam GMS, said interim IT managers were being forced to discount their daily rates to get work in an increasingly competitive market. "There has been pressure on daily rates in all sectors but it has been more pronounced in IT," he said.
Demand for interim IT managers remained strong in the public sector, he added.
The slump in demand for interim IT managers contrasts with evidence of recovery in the jobs market as a whole. Recent surveys including the Computer Weekly IT Expenditure Report and SSL/Computer Weekly Quarterly Survey of Appointments Data and Trends, highlighted a recovery in corporate IT investment and the jobs market.