IT contractor pay on track to surpass 2009 peak

IT contractors pay set to pass 2009 peak of £37,094 with lowest gap since start of recession, reveals SJD Accountancy report

Median pay for IT contractors is on track to pass its 2009 peak of £37,094, according to research by SJD Accountancy.

The research showed that median annual pay in the sector pay is currently £36,148, compared to £37,094 in 2009, which is the lowest gap since the start of the recession.

Questioning more than 600 IT contractors, the research revealed that twice as many IT contractors (25.4%) are experiencing daily rate increases rather than rate cuts (12.6%).

In 2012, the same report revealed that 29.1% reported a rate decrease and only 17.4% saw an increase.

SJD Accountancy CEO Simon Curry said the figures are almost a complete reversal of the figures seen in 2012.

“This very strongly suggests that IT sector pay should recoup lost ground this year and finally pass its 2009 peak,” he said.

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“Having reduced spending on IT during the recession, businesses are now ramping up recruitment as investment in technology revives. Increased competition for the best candidates will inevitably drive up pay.”

The report also showed that 51.2% of IT contractors are feeling “very positive” about the current state of the market. This figure was only 37.6% in 2014.

“Many contracts which were negotiated during the depths of the recession will be coming up for renewal," said Curry. "It is becoming much harder for the end client to agree contract extensions at the same rate now that contractors have considerably more choice.

“Contractors normally benefit from improving market conditions before permanent staff, so this dramatic increase in confidence over the past 12 months looks set to translate into better pay and job prospects for all IT workers later in the year.”

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