IT contractor demand within the NHS has trebled over the last three months in advance of the phasing out of Primary Care Trusts (PCTs) and the introduction in April 2013 of Clinical Commissioning Groups (CCGs) and Commissioning Support Units (CSUs).
“A fundamental restructuring of the NHS has led to huge uncertainty within the organisation,” explains Don Tomlinson of specialist NHS IT contractor recruiter max20. “The result is a massive brain drain of IT talent leaving the sector and taking early retirement.”
Tomlinson, who has supplied the NHS with IT contractors for the past twelve years, believes that the shortfall of NHS IT personnel is unprecedented: “So many senior IT managers in particular have left who simply cannot be replaced overnight.”
IT staff interviewing once too often for their own jobs have simply left
According to Tomlinson, the uncertainty facing IT professionals has led many to change sector or retire: “From April 2013, PCTs will cease to exist and the new CCGs and CSUs will take on the responsibilities of PCTs and GP practices.
“Many roles will disappear alongside PCTs, leaving some staff without a job. Others have to apply for the new roles to be created once the reorganisation is complete. In practice, despite the changes, many IT staff will find themselves being interviewed for the job they already do.”
The result, says Tomlinson, has caused significant numbers of IT staff to leave the NHS altogether, or take early retirement, since September 2012. This has left a vacuum at senior management level as well as on the technical side, which contractors are being asked to fill.
“To put this into perspective, we have supplied 50 contractors alone during January. Last year, we supplied 50 contractors during the entire first quarter, so we have seen demand treble,” he adds.
Increased IT contractor demand will be sustained following reorganisation
The new NHS structure is due to be in place by the end of March 2013. But Tomlinson can’t see that happening nationwide according to schedule, and there will be ongoing high levels of contractor demand as a result.
We have supplied 50 contractors alone during January. Last year, we supplied 50 contractors during the entire first quarter, so we have seen demand treble
Don Tomlinson, max20
He explains: “The increased IT contractor demand is from parts of the NHS that are well advanced in the restructuring process. However, many other parts of the NHS are lagging behind and won’t be ready by the end of March. The sheer scale and complexity of the NHS will mean that the reorganisation will take much longer than planned.
“A combination of the ongoing uncertainty and the new demands placed upon IT as a result of the reorganisation will result in sustained demand for contractors with technical, project management and leadership skills.”
Non-NHS contractors welcome
Tomlinson has also seen a relaxation in hiring managers’ former expectations that IT contractors will have healthcare sector, or NHS-specific experience. He believes that this will see non-NHS contractors gain a foothold in the sector.
“Many upgrade programmes that have been on hold, such as upgrading to Windows 7 or installing security systems, have now been released and require large numbers of IT contractors with non-NHS-specific skills for implementation. Plus, the reorganisation is generating lots of physical office moves and a demand for skills to manage this process. None of these roles require specific healthcare expertise,” he says.
“What then happens is that the IT contractors with a commercial background get exposed to healthcare and clinical systems during infrastructure projects. This provides them with the specialist knowledge to progress to working on projects that do require previous NHS experience.”
The other hot areas where Tomlinson has seen demand rise are in web development, and specifically online service delivery, where skills and experience gained on private sector projects is viewed as an asset by NHS hiring managers.
Senior hires are not encountering the off-payroll rules
Despite the number of senior roles he is filling, Tomlinson highlights that the off-payroll rules have yet to have an impact: “We’ve only had a single incidence of an HR department challenging a limited company IT contractor over their employment status.
“The contractor provided all of the necessary documentation about their business and the HR team rapidly came to the conclusion that the contractor was genuinely in business and should be treated as just another IT service provider.”
Competitive rates and demand for niche skills
The upwards adjustment of IT contractor rates is increasing, and for some of the senior roles is highly competitive when compared with assignments with private sector clients. Tomlinson believes this trend is likely to continue as NHS hiring managers realise they must offer competitive rates to secure the best talent, particularly at senior levels.
However, there are some niche skills where healthcare experience is still required. Healthcare information analysts, the NHS equivalent of business analysts, remain in high demand and must have relevant experience.
Document, image and contract management roles are in high demand, as are related archiving skills. In addition, demand is high for ‘registration agents’ with a solid IT background, as these people will play a key role in integrating healthcare organisations, such as GP practices, into the new structure.
Tomlinson concludes: “A good technical person can be cross-trained, and IT contractors who have made the transition into the NHS will find that the homogenous nature of the organisation means that their skills will be in demand nationwide. Once we place an IT contractor within the NHS, many stay for long periods over multiple renewals.”