IT contractors expect more work and higher pay

By David Woods Friday, 10 September 2010

Confidence among IT contractors over job creation in the financial services sector has rebounded to its highest level since before the credit crunch

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Human Resources Industry

According to research from Giant Group, the contractor services provider, when asked which sector of the economy would create most IT jobs over the next 12 months, the largest proportion of IT contractors (30%) said the financial services sector. This compares with just 15% who answered the same question in Q2 2009.

Only 9% of IT contractors think the public sector will create the most IT jobs during the next year.

The survey reveals a large number of financial institutions have ramped up demand for IT skills over the last six months as they upgrade their systems post-credit crunch. Much of this investment is being driven by mounting regulatory pressure.

And contractors are becoming increasingly optimistic that rates will rise over the next 12 months. Just under two thirds (63%) of contractors expect their earnings to rise over the next year, compared to 58% in Q2 2009.

Just 8.8% of IT contractors foresee a fall in their earnings in the next 12 months, down from 12.9% this time last year.

Matthew Brown, managing director of Giant Group, said: "Optimism about IT job creation in the financial services sector has bounced back strongly. Financial institutions are reviving projects which were put on hold during the recession. With IT departments now struggling for capacity as workloads have increased, hiring has once again picked up."

"Financial services businesses are adapting their front office systems to the realities of the post-credit crunch world. They are facing huge regulatory pressure to make transactions more transparent and improve risk monitoring."

"Whilst one or two banks might be trimming back and middle office staff, that seems to be against the broader trend."