Demand for contractors working in the information and communication technology (ICT) sector has continued to grow for another quarter, according to the Recruitment and Employment Confederation (REC). And both demand and rates for contractors who invest in skills forecast to be in short supply are likely to remain strong.
This news follows the recent publication of the latest Technology Sector Group report, Demand and Supply in the Information and Communications Technology Sector, which has been produced by ICT sector skills council, e-skills UK.
“The report confirms our view that the IT sector remains healthy and demand continues to grow,” says Jeff Brooks, REC Technology’s chairman. “In several skill areas, we will continue to experience shortage of supply and this will put pressure on pay and contract rates.”
The e-skills figures show that that the contracting skills most in demand over the report’s 12 month period are: senior business analysts (142% year on year); senior test analysts (67% year on year); and senior systems developers (54% year on year). The largest quarterly demand growth has been for analyst programmers [software developers] (17%) and systems auditors (17%).
By sector, ‘other services’ increased its consumption of ICT workers the most, followed by finance/business services, manufacturing and wholesale/retail/transport/distribution. Sectors shedding IT staff included the public sector, construction and primary/utilities, although in Brooks’ view the forthcoming public sector spending review is unlikely to dampen demand for ICT workers in the near future.
“Whilst public sector cuts provide uncertainty going forward,” says Brooks, “some of those reductions in demand have already been made by public bodies and I do not think they will change the demand landscape significantly.”
Brooks’ forecast is supported by the third successive fall in redundancies for permanent IT workers and falling unemployment in the sector. He feels that this squeeze on available candidates could account for the first real rise in ICT pay in a year.
Brooks concludes with further welcome words for IT contractors: “IT recruitment companies should see this report as a very positive state of affairs and we remain confident of the future direction of our sector and the IT industry.”