Salaries for IT contractors in the financial services sector are at their highest level in two years, despite uncertainty sparked by the credit crunch.

Hourly rates have gone up by 11 per cent in the past six months, representing a pay increase of between £45 and £50 per hour, according to research by the Association of Technology Staffing Companies (Atsco) and recruitment specialist SkillsMarket.

"The post-9/11 downturn saw IT jobs cut across all areas in the City, but we are a long way from being in that position now,”"said Atsco chief executive Ann Swain.

Banks may even look to cut costs by hiring contract workers in high demand areas such as equities and commodities trading.

"IT departments are not as over-staffed as they were in 2001-02 in terms of IT skills, so there is far less fat to trim this time around," said Swain.

The financial services industry has also seen high demand for positions within risk management, compliance, web services and security.

"Retail banks are continuing to spend on e-banking and web security at a healthy rate," said Swain.

"And regulatory spending is already feeding through to demand for IT skills in the insurance sector."