As demand for IT services continues to recover, IT recruiters believe that contracted IT staff could be tempted to leave their current projects for better rates elsewhere. Many IT recruiters, who spoke to Contractor UK, stated that the increased demand for skilled IT contractors was resulting in increased pay.
Many contractors were actually hired last year when rates were particularly low. Many actually accepted pay cuts of between 5 and 25 per cent in a ‘take it or leave’ deal. Now these contractors are the ones most likely to ‘jump ship’.
Managing director of Jenrick IT, Philip Fanthom, commented: “Now that the demand is returning, this kind of approach may ‘come home to roost’ with IT contractors opting to move to other [richer] projects/clients.”
He also believes that the treatment of contractors during the recession will now “come home to roost” as poorly treated contractors move on to better paying projects.
This is a sentiment echoed by Bernie Potton of SQ Computer Personnel, who said: “There is no loyalty to a client that has itself cut rates mid-term (or) at contract renewal time mid-project.”
He continued: “The increase in demand as the market improves will certainly result in contractors who have had their rates cut, sometimes brutally and excessively, jumping ship mid-term for more money.”
Mr Potton concluded: “We have already started to notice a trend in contractors currently in the public sector sending their CVs around to find different roles. Perhaps they have already, internally, got wind of cut-backs and project cancellations.”