With media stories about the credit crunch and all the recent talk of a recession, you could be forgiven for thinking twice about becoming an IT contractor. But here at SJD Accountancy we were pleased to see that recent research by ReThink Recruitment would disagree! According to the study:
- 70% of IT directors were planning to increase their contractor intake over the next 12 months, or at least to retain their current contractor numbers.
- More than a fifth of the respondents predicted that contractor pay rates would rise over the next year, while73% said they would at least remain static.
- All participants in the survey admitted that a permanent supply of IT skills would not get cheaper in the future.
As the economy slows and IT departments are being pressed to make even more business efficiency gains, the logical conclusion is that more IT staff will be needed in the coming months, as the research found:
- Almost half of the IT Directors surveyed said they expected staffing requirements in their IT department to increase over the next 12 months.
- 60% of the respondents agreed that a higher IT staffing level would be vital, as their department’s project workload was due to grow.
- IT Directors’ top two concerns over the next year were attracting a higher quality of candidate and retaining staff in key positions.
In response to these findings Michael Bennett, a director at ReThink, commented: “There appears to be no end of the candidate market in sight, with skills acquisition and retention still a pressing concern for IT directors.
During the last downturn we had reports of rates for contractors being slashed by major banks, but more than four times as many IT directors think rates will rise rather than fall, which shows that skills shortages are still very much an issue. We are still seeing acute shortages of candidates with .Net proficiency and project management experience remains highly sought-after.”
So although unemployment is rising, it would appear that the safest option is to be an IT contractor. It seems that most will emerge unscathed from any credit crunch effects this year, as both their projects and pay rates will defy the wider business slowdown.
If you have any questions about contracting or would like any further advice please call our New business team on 01442 275789 or e-mail: firstname.lastname@example.org.