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The right experienceThe right solutionThe right skills

The right person every time

IT MonitorYour monthly guide to salary and recruitment trends in the UK IT market

This month’s IT Monitor brings you the most up-to-date and comprehensive salary information from across the IT industry, complete with October’s vacancy trends and analysis.

The IT recruitment marketplace continues to remain competitive, with different indicators pointing to different

trends. While there has been another fall in both contract and permanent vacancies, the percentage drop has been small, and there still remains a shortage of highly skilled workers meaning that there is still more demand than supply. This trend has resulted in the continued rise in permanent salaries and contractor rates, both month on month, and year on year.

The Public Sector has experienced considerable increase in demand for both permanent and contract staff, most likely as a result of the desire to find efficiencies through technical solutions to maintain service levels, while reducing overall costs. Retail is also experiencing similar increases in the demand for permanent staff, driven by the ever increasing movement towards online shopping, and the approaching festive period.

The demand for key technologies such as .NET and Java shows development continues to be a hot spot for the market. Database technologies such as Oracle and SQL Server are also in high demand, as companies are increasing focus on utilising the data they hold on customers to increase sales.

The IT recruitment market continues its resilience in an uncertain economic climate, with employers still finding it difficult to secure the right quality of staff, and candidates having their pick of opportunities.

Regards,

Niall Cook, Brand DirectorComputer People

niallcook@computerpeople.co.uk

October 2012

Highlights from October

• Number of contract and permanent vacancies fall

• Public Sector sees significant vacancy increases, bucking the recent downward trend

• Significant rises also seen in permanent Retail and contract Media vacancies

• IT Director contract rates rise and Web Developers fall for fifth consecutive month. IT Director roles poised to become most increased contract rate of 2012

• Roles around understanding and restructuring the business continue to rise. Oracle, Business Intelligence and Project Management roles show highest earnings growth

• Increasing wage growth trend continues as salaries and contract rates continue to rise above inflation

• Developers continue to be the job title most in demand.

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Vacancies fall, albeit marginally

Vacancies across both permanent and contract markets fail to rise for the fourth month in a row; the last rise was June 2012. Continued uncertainty in the European market along with the recent raft of redundancies in London’s financial market has both contributed to a prolonged period of uncertainty.

This is not to say that there are no positive comments to make about the market. It is worth noting that this four month fall has only caused a total drop of 1% in the permanent vacancies and 0.5% for contracts. Furthermore a tough year has only claimed a 6% fall in both markets compared to this time last year. A number of key markets noted below are also showing more available roles.

The combined results of our dedicated sectors actually display rises across both permanent and contract roles. Therefore it must be the wider, more generalised, marketplace that must be bearing the brunt of the contraction.

Sector breakdown

IT Monitor

Vacancies

5,700

% Change

-0.28%

Vacancies

12,960

% Change

-0.10%

Permanent Contract

Number of advertised vacancies: all sectors

Vacancies

1,427

771

466

416

299

122

% Change

0.14%

6.05%

-1.27%

-3.93%

1.01%

9.91%

Vacancies

762

89

45

146

351

189

% Change

-1.18%

19.09%

16.67%

14.96%

-1.13%

13.86%

Permanent

Number of advertised vacancies: major sector

Contract (per hour)

Banking, insurance and finance

Retail

Telecoms

Media, new media and creative

Engineering and Manufacturing

Public Sector

Banking, insurance and financeDespite the general pessimism surrounding the financial industry at the moment the number of permanent vacancies actually grew during October. Contract roles slightly decreased but in reality the difference is only seven roles.

It seems that whatever the state of the wider market, IT appears to be vital to the operations of all financial companies.

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IT Monitor

RetailPermanent roles in the retail sector see a significant rise for the second month in a row while contract roles fall after a two month growth period.

With retail getting ready for the festive season and given the importance of online shopping platforms to the market the growth in permanent roles seems likely to continue for the rest of the year. For the same reason contract roles may also return to positive ways next month.

TelecomsAfter a strong quarter, the Telecoms sector suffers during October. In this specific sector the after effects of the Olympics were expected to be felt most heavily with no legacy projects to support it.

The relatively small drop in permanent vacancies would suggest these fears may have been over exaggerated. The drop in contract roles may appear significant but the physical difference is only nine roles.

Media, new media and creativeContract roles bounce back from September’s drop, registering an even larger rise during October. September often sees a drop off after the summer period whilst October reflects a rebalancing in the market. Demand from creative companies responding to market demand for their product as the economy at large gets ready for the Christmas marketing push is also a contributing factor.

Engineering and manufacturingA slight rise in permanent vacancies is mirrored by a similar fall in contract roles. Representing only three or four jobs either way there is no significant trend being exhibited here.

Public sectorIt would have been a safe bet to assume that public sector roles would continue the decline experienced over the last quarter but an increase in vacancies during October been recorded. This is unlikely to represent the reversal of a trend that has been obvious for most of the year. This is likely just to be a one month spike or the market bottoming out for a while.

Monthly salary trends

Salaries rise again with both permanent and contract roles continuing to rise above inflation for the year. Contract roles continue the recent trend and grow at a faster rate than permanent roles

Monthly

0.15%

Yearly

3.91%

Monthly

0.31%

Yearly

3.41%

Permanent

% changer to salary and contract rates

Contract (per hour)

October

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Average salary

£38

£47

£49

£39

£50

£35

£51

£63

£41

£45

£96

% Average change (Quarterly)

1.02%

0.40%

1.60%

-1.23%

-0.30%

-0.45%

0.30%

2.43%

-1.10%

-1.20%

3.80%

% Average change (Year)

3.29%

5.00%

0.10%

7.29%

0.61%

10.80%

7.90%

5.45%

1.38%

7.20%

10.10%

Averagesalary

£39,347

£47,701

£52,432

£38,261

£53,200

£32,743

£51,945

£67,159

£46,958

£40,699

£76,513

% Average change (Quarterly)

0.01%

-0.05%

0.03%

-0.01%

0.09%

0.11%

0.05%

-0.07%

0.04%

-0.05%

-0.06%

% Average change (Yearly)

7.60%

0.24%

9.10%

5.25%

9.87%

3.73%

5.82%

4.90%

7.41%

0.65%

4.33%

Permanent (per annum)

Job title

Contract (per hour)

.Net/C#

Java

Oracle

SQL Server

Business Intelligence

Web Developer

Project Manager

SAP

Testing

Database

IT Director

IT Monitor

Continued rising earnings, especially earnings that have risen above inflation for the year, are a sign of continued demand in the marketplace. The permanent earnings increase is still nearly 15% higher than contract rates increase suggesting that companies are generally more prepared to take a long term view of skills acquisition. The fact that this month’s contract rate increase outstrips the permanent rise is due to the beginnings of preparation for the festive period.

Salaries for permanent Project Manager, Oracle, .NET and Business Intelligence roles continue to rise. This keeps them at the top of the pile for the year, in terms of salary increases, and well above inflation. This reflects a desire throughout the marketplace to leverage the greatest potential from the business and ensure that companies are fully prepared to take advantage of any positive movement in the economy.

On the flip side Business Intelligence contract rates drop for the month, having barely risen over the year, suggesting that companies are interested in employing these skills only with longer term objectives in mind. This is mirrored by the trends for Oracle roles.

Database and Java permanent roles drop and remain the only roles in the basket not to grow above inflation.IT Director roles continue to surge in the contract environment. For the fifth month running they represent the largest increase in contract rates. With Web Developer roles declining over the same period it is possible that IT Director contract rates may achieve higher yearly gains by the end of 2012. Again this may indicate a short term view to strategy redevelopment in a period of relative uncertainty.

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IT Monitor

Overall Developer

Analyst

Business Analyst

Project Manager

Software Engineer

Consultant

Architect

Designer

Administrator

Java Developer

Test Analyst

Analyst

Business Analyst

Developer

Project Manager

Java Developer

Test Analyst

Architect

Engineer

Consultant

Senior Analyst

Developer

Analyst

Project Manager

Engineer

Developer

Project Manager

Architect

Business Analyst

Web Developer

Senior Developer

Software Engineer

Administrator

Java Developer

Designer

Support Analyst

Developer

Analyst

Business Analyst

Project Manager

Consultant

Java Developer

Senior Developer

Support Analyst

C# Developer

Senior Analyst

Developer

Web Developer

Project Manager

Designer

Permanent

Jobs in demand

Contract

Banking, Insurance and Finance

Media, New Media and Creative

Jobs in demand

The job demand hierarchy has remained constant throughout the year to date. Developers, Project Managers, and Analysts remain most highly desired.

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IT Monitor

Designer

Business Analyst

Web Developer

Architect

PHP Developer

Flash Developer

Engineer

Analyst

Developer

Project Manager

Consultant

Architect

Business Analyst

Engineer

Consultant

Analyst

Project Manager

Developer

Business Analyst

Software Engineer

Support Engineer

Analyst

Developer

Manager

Engineer

Consultant

Project Manager

Business Analyst

PHP Developer

Consultant

Architect

Business Analyst

Senior Developer

Administrator

Developer

Consultant

Project Manager

Architect

Project Manager

Software Engineer

Development Manager

Engineer

Developer

Consultant

Analyst

Software Engineer

Support Engineer

Senior Engineer

Business Analyst

Manager

Analyst

Developer

Consultant

Engineer

Architect

Project Manager

Permanent

Jobs in demand

Contract

Telecommunications

Public Sector

Engineering and Manufactoring

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IT Monitor

IT Monitor is developed using market intelligence from major job boards, data from all brands within the Adecco Group UK & Ireland, company websites, social networking sites, SalaryTrack, the market’s leading earnings information service and mysalarychecker.com (www.mysalarychecker.com)

5410 CP V2

Wrap up

A slight drop in vacancies would appear to be a return to the status quo following the London 2012 Olympics given the country’s economic situation. Continued overall pay growth suggests that despite this there remains demand for the jobs that are out there. Recent figures also show that the job in the overall market are being filled at the fastest point for 18 months so both employers and candidates may just be feeling a little more confident about the future. Watch this space.

Key skills in demand: The continuing speed of this marketplace means that development technologies are always in demand. Customers are changing the way they buy, business are changing the way the sell, the market is changing the way it behaves.

Big Data is increasingly becoming the new IT catchphrase so all datacasing skills, such as SQL, are finding demand pick up. The desire to use link data sets and use it to define customer behaviour is obvious in today’s market. SAP and Oracle e-business technologies help businesses remain competitive; in current climate that competitiveness is key so investment continues to be high throughout the IT sector.