The UK computer skills council has found that temporary and contract IT workers are more in demand than permanent IT employees. Reporting on the first quarter, e-skills UK stated that there was a 10% increase in demand for IT contractors during this period while demand for permanent IT workers only grew by 4%.

This data is based primarily on IT services that are based within London and the South. The report suggests that the increased opportunity for IT contractors comes courtesy of the financial services sector and the electronics industry. This has also resulted in an increased hourly rate for IT contractors in these sectors as the increased demand has pushed pay rates upwards in the region of 3% between the months of October 2009 and March 2010.

However, the average contractor who has seen a rise in income is really only better off by about 1.3% in real terms. E-skills stated that while many job boards are showing large wage increases, “an overall increase in ‘real pay’ has yet to materialise.”

With pay linked so closely to demand, IT contractors who are proficient in SMS, Prince Exchange, Windows NT, VPN and Windows 2000 are unlikely to see an upwards change in their pay rates in the foreseeable future. On the flip side, contractors who are skilled in 4GL, SCOM, CGI and CAM are likely to see a massive increase in demand and a subsequent rise in the rates they can charge.

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