Demand for IT contractors increasing

According to the Recruitment & Employment Confederation’s latest index, demand for IT contractors has matched the general upward trend of the temporary jobs market. Demand last month for IT contractors and computing workers stood at 56.9 and this was up from 56.4 in May and much higher than the 43.3 recorded in June last year. This was mainly thanks to investment banks signing off new budgets for technology projects, creating a ‘boom’ for IT contractors, particularly when compared to their prospects a year ago.

London-based pre-employment screening firm Powerchex supported these findings, issuing figures which showed total contract offers to IT freelancers leapt by 320% in the four weeks from May, and by 340% against June 2009. The sector, which grew by 45% from May to June, has been recruiting for new IT-enabled projects, indicating optimism for at least the next quarter.

Powerchex founder Alexandra Kelly stated that these figures tally with the latest official jobs data, showing that the recovery in the private sector jobs market is ‘getting back on track.’ She went on to say, “IT contractor hiring shows signs of another round of optimism in investment banking this Summer. The surge in IT contactors shows the sector has released the build-up that had been waiting on the back burner until government news was certain.”

Speaking last month, IT recruiters at staffing firm Jenrick stated that client companies in London were prioritising their contract hires, with Managing Director Philip Fanthom commenting, “There is a steady demand for IT contractors in London depending on their skill set. What we have witnessed is that the pendulum has swung back from a trend to recruit on a permanent basis, firmly towards recruiting contractors.”

If you enjoyed this story then visit our Contractor News page for all other news. To discuss this story further visit our SJD Accountancy Blog.