Confidence and rates increase for IT contractors

by Susie Hughes at 12:28 27/03/15 (News on Business)

Twice as many IT contractors are seeing rate increases than those experiencing rate cuts, and confidence among IT contractors has reached its highest level since the recession, according to research by SJD Accountancy, contractor services provider.

Just over a quarter of IT contractors are reporting an increase in their daily rates, compared to 12.6 per cent who are experiencing reductions in their pay. This is a complete turnaround from the 2012 research, when nearly twice as many IT contractors, 29 per cent, saw their rates cut than increase. Advertisement Simon Curry, Chief Executive Officer of SJD Accountancy, said: “Twice as many IT contractors are now seeing increases in their pay rather than experiencing pay cuts, almost a complete reversal of the figures seen in 2012. This very strongly suggests that IT sector pay should recoup lost ground this year and finally pass its 2009 peak. “Having reduced spending on IT during the recession, businesses are now ramping up recruitment as investment in technology revives. Increased competition for the best candidates will inevitably drive up pay. “Many contracts which were negotiated during the depths of the recession will be coming up for renewal. It is becoming much harder for the end client to agree contract extensions at the same rate now that contractors have considerably more choice.” The research also reveals that a just over half of IT contractors are ‘very positive’ about the state of the market, a significant increase on the third of IT contractors who were ‘very positive’ this time last year. Simon Curry said: “Contractors normally benefit from improving market conditions before permanent staff, so this dramatic increase in confidence over the past 12 months looks set to translate into better pay and job prospects for all IT workers later in the year.” Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2015

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