IT contractors are expected to benefit from a sustained growth trend in terms of cross-sector demand as firms in traditionally non-digital sectors invest more in technology to drive efficiency.
This is according to Tech Nation 2016 - the latest study from Tech City and Nesta - which identifies the digital tech industry as the driving force behind UK economy growth.
“Digital jobs and activity are becoming ever more important in traditionally non-digital areas of the economy – from retail to financial services and the public sector,” highlights Nesta CEO Geoff Mulgan.
Statistics from the study show that the digital tech economy currently accounts for approximately 1.56m jobs in the UK, of which 41% exist within non-digital sectors, a figure which is expected to continue to rise.
This cross-sector demand has contributed considerably to the accelerated rate of job creation within the industry, which is outpacing the rest of the economy by 280%. For ContractorCalculator CEO Dave Chaplin, the figures point towards an abundance of contract opportunities:
“There’s now a broader scope than ever for IT contractors to source contracts. As more firms in an ever-widening range of industries look to enhance their IT operations to boost productivity, dependence on contractors is set to continue to rise.”
Demand is likely to be intensified further by ongoing skills shortages, as highlighted within the report. When asked about the biggest challenges faced with regards to achieving business growth, 43% of respondents reported difficulties sourcing sufficiently skilled talent.
Whilst increasing numbers of firms are looking overseas (35%) and towards local universities (35%) to attract workers, the shrinking IT talent pool – driven partly by an influx of professionals moving into the contract sector – will ensure that contractors remain a popular alternative to permanent hires.
Predictably, London remains the hotspot for IT contractors in search of opportunities, accounting for 328,000 of digital jobs within the UK. Manchester (52,000) and Reading & Bracknell (40,000) are the second and third most prosperous regions in this respect. Meanwhile, Leeds (+29%) and Newcastle & Durham (+27%) are the two regions that have seen the largest growth in terms of pay since 2012.
With a wide array of specialisms in high demand, contractors with versatile skillsets will likely experience a particularly strong upturn in terms of the amount of sources of potential contracts.
Notably, app and software development (16.7%) and data management & analytics (11.7%) make up the two largest specialisms amongst digital tech businesses. However, contractors can also expect to see significant demand in areas such as enterprise software & cloud computing, as well as hardware & devices.
“With innovation constantly presenting opportunities within various niche areas, contractors who identify emerging trends within the market and upskill accordingly will find themselves very well placed to take advantage of opportunities,” Chaplin concludes.