Many contractors feared that working in the public sector would be untenable as Government put pressure on Departments to justify and account for their use of contract or off payroll staff after controversy over the number of senior Government workers who operated through so called personal service companies to reduce their tax and NI liabilities.
However, giant group, the umbrella employment provider, forecasts the roles for contractors within the public sector will increase.
It reported that 15 per cent of IT contractors expect the public sector to be the source of the most new jobs over the next twelve months, up from nine per cent in 2011 and just six per cent in 2010.
According to giant, public sector cuts have led to increased demand for IT contractors as managers seek external help to improve efficiency and make up for reductions in permanent headcounts.
Matthew Brown, Managing Director of giant, said: “The public sector cuts of the last two years have placed pressure on managers to increase efficiency and make savings as well as find ways to replace the skills and experience of departing staff.
“This has created plenty of fresh opportunities for IT contractors. Demand for new IT investment has blossomed as managers hunt for efficiencies, while IT contractors are needed to plug holes in staffing capabilities and implement these new IT systems.”
IT contractors surveyed by giant were most confident about opportunities in the support services sector, with 26 saying they expected this sector to produce the most new jobs over the next 12 months. This is up from 22 per cent a year ago and 19 per cent in 2010.
However, giant says that IT contractors are less optimistic about job opportunities in the financial services.
Nineteen per cent of contractors surveyed believe this sector will create the most new jobs over the next 12 months, down on the 23 per cent and 35 per cent for the previous two years.
Matthew Brown said: “The financial services sector has continued to experience a tough time in 2012 as the UK entered a double-dip recession and financial services continue to suffer from the aftermath of the banking crisis. This has limited the demand for new IT contractor roles.”
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Susie Hughes © Shout99 2013