It contracting rates still average 40 pounds, but some see rises

• IT contract rates steady at 40 pounds per hour
• East Midlands IT contractors see rate rise
• East of England sees IT contracting rates fall
• Engineers see rises

There is good news on rates for many IT contractors this morning as a survey from the London-based Association of Technology Staffing Companies (ATSCO) in collaboration with the London-based research and consulting firm Skillsmarket shows.

Payoff for Certain Regions

Despite some economic turmoil, the average rate of pay for IT contractors in the UK has held steady at 40 pounds per hour through the last quarter of 2007.

Some contractors have done better than others though in the competition for rates. Both permanent and contract staff working in the East Midlands have enjoyed small rate rises, the survey shows. IT contractors in the East of England did see a small decline in hourly rates for the same period.

Payoff for Certain Skills

There is a clear increase in hourly compensation for certain skills as well, both for permanent staff and contractors. Those working with C++, JAVA, Oracle, SAP or UNIX, or as analyst Programmers and trainers were likely to have benefited from increased earnings over the period. On the other hand, small declines were seen for IT staff working with C or Lotus Notes together with those employed as programme managers technical support staff and Web developers irrespective of the nature of the work or the sector.

Engineers See Rise

Engineers thoughout the UK saw a small increase in their hourly fee due to the continuing shortage of those working in this area. Contractors in the manufacturing sector also enjoyed a rise, while contractors working in the IT sector saw a small decline.

Ann Swain, CEO of the Association of Technology Staffing Companies (ATSCo), commented: ''2007 seems to be concluding the same way that it started with strong demand for contract and permanent IT staff. Our members predict this trend to continue into 2008 with those possessing niche skills more likely to see a rise in pay rates.''

Annual salaries and hourly rates remained largely unchanged for three consecutive quarters, and neither permanent IT staff nor IT contractors reported a rise in earnings for the third quarter of 2007.

Another Survey Concurs

A separate survey just released by the Recruitment and Employment Confederation, shows that demand for IT workers is at it's highest in six years, supporting yearly salary growth for the nearly one million people employed in such roles.

The survey has shown that demand for ICT workers jumped 7% last quarter - pushing it to the highest since the end of 2001.

Jeff Brooks, chair of the Recruitment and Employment Confederation's (REC) IT & Comms sector group, which commissioned the survey, said the demand was spurred by increased corporate investment in IT.

''We believe it's increased business investment to try to get competitive advantage,'' Brooks said. ''We're not surprised at demand, but are always looking for flattening out, which we are pleased to not find.''