Many analysts had predicted that the demand for IT contractors would decline as the economic condition continued to deteriorate. It now looks like IT contractors in the financial industry are doing much better than was originally expected. The last few months did see a reduction in the quantity of contractors hired in IT, but that trend seems to have ended last month.
Staffing firm Powerchex noted that in the month of December there was a 75% decline in the number of IT contractors that were hired. In a surprising turn around, there was a 30% increase in the number engaged in January.
A director of recruitment in the industry, Paul Elworthy, said that there were indications that IT contractors were doing well in the financial sector. Elworthy also added “There do seem to be signs of some increased hiring for contractors in the financial services space. But I would be loath to refer to it as a recovery quite yet. January is usually the beginning of the new budgets so there is a little more freedom to hire so the change from December to January can be quite a positive one.”
The majority of IT contractors hired in the financial industry ended up in the insurance and investment banking areas. Elworthy also noted that a majority of the candidates that found work in January were experts on particular subjects. This allowed them to stand out amongst other applicants which may have increased the demand for their services.