London and the South East offer most IT jobs

Almost two-thirds of all technology jobs in the post-credit crunch era are clustered in the south of the UK and mainly in the financial services industry...

Almost two-thirds of all technology jobs in the post-credit crunch era are clustered in the south of the UK and mainly in the financial services industry, according to research.

Some 64% of vacancies were concentrated in London and the South East by June 2010 in comparison to 58% of jobs created in the region in the same month two years ago, said the survey by ReThink Recruitment.

The increase in the jobs on offer in the region brings an upbeat outlook to the IT jobs industry, despite previous fears that it would suffer due to the concentration of technology jobs in the financial services sector.

"Banks are now kick-starting projects which stalled during the recession and this activity tends to be focused in London and the South East. As businesses levels have picked up, many have found themselves understaffed and have had to replace a lot of the skills that were shed during the recession," said Michael Bennett, director at ReThink Recruitment.

"The financial crisis has also prompted significant investment in compliance and risk management systems in the banking sector. We have seen a substantial increase in demand for candidates skilled in these areas," said Bennett.

"The wave of mergers between financial institutions brought about by the credit crunch has fuelled demand for IT candidates in London and the South East to handle post M&A integration of banking IT systems."

The survey said there has been a "significant demand for IT skills" from the new banks which have emerged after the downturn, such as Metro Bank and Tesco Bank.

Yorkshire and Humberside is the only UK region outside London and the South East where technology vacancies have seen a post-recession boost, from 5.3% in June 2008 to 6.2% in 2010. This is despite several high street banks in the area cutting IT staffing levels.

"Aside from financial services, Yorkshire and Humberside has focused in recent years on e-commerce and its high-tech infrastructure has attracted many blue-chip organisations. Siemens, for example, has recently chosen to house its corporate headquarters in Yorkshire," said Sarah Tulip, regional manager at ReThink's Leeds branch.

"In addition, as many large retailers moved parts of their business online, this has also created a surge in demand for staff experienced in developing large transformational IT projects," she said.

According to the recruitment firm, many regions outside London and the South East are more reliant on the public sector and considering the cuts being implemented, future creation of IT jobs in these areas may be stifled even further.

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