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Contractors lead rise in pay rates across sector

IT contractors are experiencing a boom in pay rates, with an average annual increase of 14%.

Although permanent IT staff did not receive the same rises as contractors, the average annual pay rise was 8%, according to a survey by the Association of Technology Staffing Companies (Atsco) and jobs site SkillsMarket.

Both permanent and temporary IT pay increases are better than the national average of 4% in the year to April, according to figures from the Office for National Statistics.

Atsco chief executive Anne Swain said that strong growth in IT pay was being driven by the public sector and retail. "There is huge growth in the public sector because there is more money and better projects, and they have not got enough senior people. Rates are also going up in the retail sector, with contractors getting £40 to £45 an hour," she said.

Swain said the demographic of in-demand IT workers was changing. "We are finding that more junior people are in demand. Because of outsourcing, IT employers are not training younger staff. There is also a shortage of support staff, whereas there used to be a surplus," she said.

Julie-Anne Brooks, a director at recruitment firm JM Group, said, "There have been significant increases in the demand for support/service roles, predominantly at a junior level.

"At the senior level, however, demand was fairly stagnant on last year. Looking forward, we expect the next six months to continue in the same direction, with continued increases in rates as demand outstrips supply."

Demand for skilled IT staff rises >>

ComputerWeekly/SSL salary surveys >>

Association of Technology Staffing Companies >>

SkillsMarket >>

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