London is the place to be for IT contractors
A recent survey by ReThink Recruitment has identified that well over a third of all new UK IT roles being created are London based. The new figures of around 40% shows a 6% rise from Summer 2008 at the start of the recession. These figures indicate that London is becoming a ‘major hub’ for new technology start-ups, as well as industry giants such as Google and Cisco, both of whom have recently invested in parts of East London. Venture capital firms are also looking at London as a good destination to develop start-up enterprises, as Silicon Valley investments are seen by some as ‘overpriced’.
According to ReThink, London has a lot to offer specialised technology firms, including relatively competitive office rentals and a good source of recently qualified IT candidates. He also pointed out that the boom in IT recruitment in London owed much to the recovery in the financial sector, and the need for new IT systems to meet new compliance rules which were created in the fallout of the credit crunch. Commenting on the findings, Director of ReThink Michael Bennett said, “London has a large number of banks and financial services firms headquartered in the city, and many of these responded to the downturn by cutting IT departments. When business volumes increased, so did requirements for qualified IT staff. Regulatory pressure and greater reporting requirements are also forcing banks and other city firms to strengthen their compliance and risk management IT systems. Many are restructuring their front office IT systems to ensure greater transparency, which could explain this on-going demand.”
Other factors which have led to a boom in IT recruitment in the capital include the unprecedented number of mergers between financial services firms following the credit crunch, which has resulted in delayed projects finally going live. Second to London, the South East region accounts for a further 23.9% of new IT jobs being created.