It has been well documented that IT contractors with specialist skills are still in high demand. However, their lesser skilled counterparts are now in a position where opting for a permanent contract is looking like more and more of a reality. This is particularly true of contractors working in the financial services sector.
The lack of opportunities available for non-specialist IT contractors has been verified by screening service Powerchex who have reported a decline in available IT contracts for the seventh consecutive month. This means availability of contracts is at 40% of the number available a year ago. There are also fears amongst contractors who have secured positions in the financial services sector since it is believed that the financial services sector may have over-hired earlier this year when confidence returned to the sector.
Alexandra Kelly, Powerchex founder, stated: “If you are an IT contractor on current assignment, it would be worthwhile exploring the possibility of going permanent. ‘Going perm’ will offer assurance in this tenuous environment…especially to those IT contractors with non-specialised skills and those on non-essential projects”.
She continued: “Bear in mind the sector has also been over-hiring,” she said, outlining why she expects financial pay rates to be under pressure. While pockets of very specialised IT skills may attract guaranteed bonuses, this does not reflect the market trend.”
Lloyds TSB have announced 4,600 jobs cuts which will further saturate the contractor jobs market.