The CBI yesterday published data, which shows that spending in IT is likely to remain “broadly flat” over the next year. The CBI attributed this freeze in IT spending to the last quarter’s upturn falling short and the expectation that profits in the sector will level out over the next quarter.

Powerchex stated that there are fewer opportunities for financial IT contractors than any other contractors within the IT sector. Commenting on this news, Powerchex founder Alexandra Kelly said: “IT contractors are suffering because of a lack of new projects. When there are new projects, clients are starting to staff up the major ones with permanent IT workers. Many financial organisations are still delaying investment in support and functions [in] it.”

She continued: “There is now more willingness on the part of the contractors to go for the safer option of becoming employees which[ because of the economy] should not come as a surprise.”

Parity Resources’ Alan Rommel told Contractor UK that opportunities in the public sector had been “slower than usual to pick up”.

However, managing director of Hays IT stated that despite the focus on “cost efficiency” it is not all bad news for IT contractors. James Lloyd-Townshend stated: “[Organisations] are ultimately after professionals who can provide technical solutions in a structured and cost effective way, consequently this has led to sustained demand for architecture expertise…[and] has fuelled demand for business intelligence consultants [with] Sharepoint.”

Mr Lloyd Townshend also stated his belief  that opportunities would increase for IT contractors in the second half of 2010: “Initially we expect that senior interims will manage the majority of projects. We would then expect to see companies increasing their permanent headcount gradually as the market starts to pick up and confidence improves.”

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