Is offshoring reducing IT pay in London finance sector?

The recession and increased offshoring to cut costs are both affecting IT pay levels.

A report from recruitment consultancy Robert Walters has revealed a drop in pay between 2009 and 2010 for IT professionals in London.

The report I have seen is for IT professionals in the Banking & Financial Services sector and the Commerce & industry vertical. Both, for the London region, show similar declines in pay levels.

Here are the findings for the Banking & Financial Services sector:


                                                Permanent salary per annum £s                         

                                                2009                 2010                              

Head of IT/CTO/CIO                    £120-180k         £110-170k

Head of Product Line IT              £120-180k         £100-150k

Head of Infrastructure                 £100-135k         £100-130k

Development manager                £110-140k         £100-120k

Programme manager                  £100-130K         £100-120K

Developer/Quant Developer         £80-130k           £80-120k

Head of Application support        £85-125k           £80-115k

Senior Technical Architect          £80-110k           £80-100k

QA Manager                              £75-100k           £70-90k

Project Manager                        £75-110k           £65-100k

Senior Java Developer                 £65-95k             £65-95k

Business Analyst                       £70-90k             £65-85k

Excel/VBA Front office               £70-90k             £60-80k

Junior Java Developer                 £50-65              £45-60k

Business Analyst (junior)            £45-65              £40-60k


Contracts in the sector saw their daily rates drop also. Lloyds banking group last year told its IT contractors it was cutting pay by 15%.