PracticeConsultingCity IT consultants see pay rise

City IT consultants see pay rise

Boosted by the prospect of economic recovery in the financials services sector, rates of pay for City IT contractors have risen for the first time in four years.

Link: Consultant fees top £10bn

Research by the Association of Technology Staffing Companies (ATSCo) shows that in the last six months of 2003, freelance IT pay rates in financial services firms rose by an average of 2%.

In other sectors such as high technology, average freelance IT rate rises were as high as 9%.

The biggest individual winners were datawarehousing experts, who saw hourly rates leap by 35% to £54.

According to Ann Swain, ATSCo’s chief executive, regulatory programmes such as Basel 2 and Sarbanes-Oxley are forcing financial services companies to make data management a priority.

‘The strong demand for datawarehouse architects demonstrates that double-digit wage inflation is still a reality for certain niche skills,’ she said in a statement.

The financial services sector was hit hardest by the downturn, and rising pay here is seen by many as key to recovery.

Swain said: ‘City institutions scaled IT departments down to minimal operational requirements during the downturn so any upturn is going to feed through to job creation fairly quickly.’

ATSCo’s iProfile Skills Survey also reveals that unemployment among IT freelancers fell by over a third during the last six months of 2003. ‘As contractor unemployment falls, wages should continue their upward trend as the pool of reserve labour dries up,’ said Swain.

Swain also predicted companies would begin to invest in IT infrastructure as the recovery took hold. ‘The bottom line is the average corporate PC and its software is reaching the twilight of its useful life,’ she said.

‘Preliminary activities such as business impact planning will soon give way to full-scale IT implementation,’ she added.

The iProfile Skills Survey is compiled from data on more than 20,000 IT professionals and over 7,500 individual responses.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer