IT contractor hiring numbers throughout the UK have recently surged, with demand growth for contingent staff within the sector found to be outperforming that of permanent employees.
This is according to the Tech Cities Job Watch for Q3 2015 by Experis Manpower Group, which reveals a country-wide upswing in contractor vacancies, at the expense of the permanent jobs market, which has reported declining figures.
While London remains the dominant hub for IT contracts, other major cities throughout the UK are looking to up their contingent headcounts, making contracting outside of the capital an increasingly viable option for contractors in the IT sector.
“IT is a particularly buoyant sector for contractors and it is encouraging to see that the traditional dominance of London’s financial sector is waning,” highlights ContractorCalculator CEO Dave Chaplin.
Overall, contractor demand across all cities surveyed increased by 6%, with London experiencing a 5% increase in the number of contract vacancies, but it was elsewhere in the UK that contingent staff really saw their stock rise.
Tech cities outside of the capital enjoyed a 10% increase in contractor demand, making up a quarter of overall vacancies. Notably, Newcastle saw a 225% upswing, whilst Manchester reported a 30% increase in contracting opportunities.
According to the report, the migration of talent away from London is partly due to improved cross country transport links. A rise in companies basing their core functions in other cities is also thought to have resulted in more widespread IT contract opportunities.
Conversely, demand for permanent hires fell by 4%, with London witnessing a 7% decrease. The contrasting fortunes are believed to be due to the intensifying demand and immediate need for staff within an increasingly competitive market, along with the ongoing skills shortage.
“Businesses are always on the look-out for short-term solutions when it comes to this sector. As a result, IT contractors should be able to look forward to an increasingly broad-based demand for their services,” Chaplin adds.
“The rapid evolution of technology we are witnessing puts an even greater emphasis on the skills our IT professionals are required to have, subsequently fanning the flames of what is already an over-heated war on talent,” the report reads.
Rising demand has also translated into increasing rates for contractors. Day rates paid across the 10 core cities saw a rise of 4%, to an average of £410 per day. Typically, London reported the highest average day rate, followed by Newcastle and Leeds. Meanwhile, big data specialists enjoy the highest rates of all contractors, earning an average of £539 per day, followed by cloud professionals on £453.