Application analysts and senior managers are among the IT contractors in danger of becoming unaffordable for companies to hire, according to the latest IT Monitor Survey published by Computer People.

Contractor pay rates have increased significantly during the last 12 months, which has resulted in several skill sets now commanding a substantial premium despite the fact that the pool of jobs has decreased since the first quarter of 2015.

Application analysts have experienced a staggering 27% rise in pay rates since June 2014, while senior managers have seen their average rate grow by 12%. Flexible workers in web development, business intelligence and tech support are also pushing up average daily pay.

Computer People managing director Roy Dungworth said: “A lack of skilled, available candidates is driving pay rates beyond some companies’ reach. While the demand for contract staff we witnessed during the recession … appears to be dropping off, the IT sector continues to fill immediate gaps in strategic skills.”

He added: “Further proof of this comes from the steady growth of daily rates, which are currently outperforming advertised permanent salaries.”

The demand for IT contractors and specific specialisms currently varies significantly across the country, with companies in London currently driving demand for technical architects, senior management application analysts and IT security professionals.

In contrast, the north-west has seen demand soar for database developers, web developers, software testers, business intelligence specialists and business analysts.

The overall picture for IT contractors remains positive despite a rise in permanent vacancies, with Mr Dungworth predicting that conditions will continue be more favourable than in 2014.

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