Pay rates for contractors, across six areas of IT work, have increased by between 7.6% and 12.5%, compared with last year, according to a report by Computer People. The figures compared July 2013 with July 2012 and the specific increases were: Application Analysis and Business Analysis - both up 8%, IT security and Network Engineering - both up 12.5%, Technical Architecture - up 8.3% and Project Management - up 7.8%.
Incorporating increases in IT Directorships and six other functional areas that saw year-on-year increases of below 7.5%, the average increase for IT contractors as a whole was was estimated at 5.5%, compared to a year ago.
The increases were attributed to a double-digit increase in demand and the competition for talent, a trend that is likely to continue as a result of the previously reported growth in investment in IT security, compliance in financial institutions, the continued rise of the digital, e-commerce and mobile sectors and the general economic recovery, combined with an IT skills gap.
In contrast, pay increases for the main permanent categories of work for IT contractors were reported to be a less impressive 1.7% annually.