IT consultant pay increases 17 per cent
30 March 2007 New research shows IT consultants have seen pay increase by 17 per cent in the last year.
New figures from the Association of Technology Staffing Companies (Atsco) and SkillsMarket reveal that average earnings for IT consultants have now breached the £48,000 barrier.
This compares with the average pay for IT contractors of £41,500 last year.
The increase in pay was put down to the increased demand for staff as IT projects stemming from increased merger and acquisition activity across a number of different areas, in particular in the financial services sector.
Ann Swain, chief executive of Atsco, said: ''Demand for consultancy skills has surged on the back of the recent M&A boom. Post-merger integration of IT systems can be a hugely complex task, and companies rarely have the resources to manage the process internally.''
She added that many consultancies have embarked on ''aggressive recruitment drives'' over the last six months as the high levels of new business from mergers and acquisitions increase demand for IT contractors.
''Skills are now in very short supply. Rival consultancies are locked in a bidding war for skills, which is creating a wage spiral,'' Ms Swain explained.
Despite criticism of public sector IT projects running over budget and claims that government departments are paying excess amounts for IT contractors, the report finds that demand and pay is remaining high.
Commenting on the figures, Stephanie Elliott, managing director of Volt Europe, said: ''Volt Europe has seen a substantial increase in the demand for both permanent and contract staff during Q4 2006, continuing the trend from earlier in the year and helped by a buoyant financial services sector.
''We expect to see this upward trend to continue in 2007 as the demand for specific skills (eg financial services applications development) will remain high and contractor rates also increase due to a diminishing candidate pool and, in some cases, large companies moving out of London while continuing to offer similar rates to attract the best possible candidates.''
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