In 2004 the IT contractor market grew by an estimated 30%
and 2005 was predicted to follow suit with a high demand in financial
services, telecoms, and–most notably–in the public sector
(government). IT contractors used to have a reputation as loner
geeks-for-hire, whose only business value was their ability to keep the
complex systems running for the “real” business users. Today, that
perception has changed. Businesses now see IT contractors as much more
essential to the organization as a whole. They are valued as workers
with specialized skills that complement in-house resources and have a
significant impact on the organization’s strategy and commercial
goals.Traditionally, the public sector has not been able to match the
private sector (particularly in financial services) in terms of salary;
recently however, this has changed. Due to increased pressure to
complete high-profile projects, such as the UK’s National Programme for IT,
the public sector has upped the stakes and closely matched the
offerings of private sector employers. Combine this with the
opportunities available in the public sector: the high-profile projects
which would look good on anyones CV, increased flexibility, and
greater diversity, and the public sector looks more and more inviting! Giant group
has specialised in limited company development and umbrella payroll
services for the contractor market since 1992. Managing director
Matthew Brown comments: The financial services sector has
traditionally been the principal growth driver for the industry. When
things start moving there, times are generally good but what is
particularly encouraging about the current market is that the public
sector, which tends to be more insulated from cyclical trends, is
providing additional ballast.
Research carried out by Giant suggests that the public sector has
now overtaken even the financial services sector, retaining 23% of IT
contractors compared to 21%. This may not be a lasting trend, however,
with 28% of contractors identifying the financial services industry as
a likely mover, compared to 19% favouring the public sector. This could
be a telling sign of things to come, with Basell II
being predicted to increase demand in the financial sector for 2006. As
previously mentioned, the telecoms sector remains a key player with 15%
of contractors speculating that it will generate the biggest number of
new contracts in the coming year. Consumers’ appetite for high-speed
internet and mobile services is still increasing, 3G is becoming more widely accepted with a much better range of handsets filtering into the market.
All in all things are looking interesting and the competition
between these major sectors has resulted in driving wages upwardslet’s
see what surprises 2006 has in store