There was no overall movement in the median salaries/rates reported from permanent/contract IT staff during the final quarter of 2007 with permanent (median) salaries remaining static at £35,000 per annum and (median) contract rates fixed at £40 per hour.

iProfile pay index, 2002-2007

Source: SkillsMarket

As would be expected however, changes were much more apparent when a more detailed analysis of the iProfile data was undertaken, and in particular when looking at the most common skills, roles, regions and industries, it was found that for IT staff in general (i.e. contractors and permanent staff combined):

•           Whilst overall, increases occurred in rates for those working with C, Lotus Notes, MTS, SAS and Sybase, the reverse was true for IT staff working with BEA WebLogic Server, COM/DCOM and Windows 2000 Professional.
•           IT staff working as Analyst Programmers, IT Directors and Technical Analysts all appeared to enjoy increases in their earnings during Q4.07 though Network Administrators, Programmers, Project Co-ordinators, Service Delivery Managers and Software Testers reported lower median earnings irrespective of their contractual status.
•           The North East, Wales, the North West and the West Midlands were all associated with increases in median salaries/rates even as remuneration for IT staff fell within the East of England, Scotland and the East Midlands
•           Salaries and rates both rose in the Aerospace and Property /Real Estate sectors during Q4.07 but fell for both permanent and contract IT staff working in Leisure, Tourism & Hospitality

In general, the findings of the report are shared by those working in the recruitment sector, who, this quarter, also throw some light on potential scenarios facing IT staff/recruiters over the coming year:
“Q4 2007 saw yet another steady quarter for IT staff - demand for IT staff has once again remained high and 2008 is looking set to begin in a positive fashion for our members”.

Ann Swain, CEO of the Association of Technology Staffing Companies (ATSCo)

“Following the trend witnessed in the previous three quarters, we continued to see a strong increase in the demand for both contract and permanent IT staff throughout the fourth quarter of 2007. Availability of skilled candidates in quarter one 2008 continues to fall short of market requirements across the permanent sector. In addition, we have observed an increase in companies making substantial counter offers to retain their best people.”

“In terms of contract staff, demand and pay rates remained stable during the fourth quarter of 2007. However, over the next six months we are expecting a slight swing towards permanent recruitment and away from contract. In Spring’s experience, this is a standard response to uncertain economic conditions with many companies planning to reign in spending.

“On the whole, with many areas having remained stable and with no rate increase detectable in the fourth quarter of 2007, we are anticipating a slight downward trend in terms of pay rates over the next six months. This, however, varies between industry sector and region, and overall it is our opinion that the IT marketplace will continue to be buoyant in the first six months of 2008.”

Aidan Anglin, Managing Director of Spring’s Professional Staffing Services

The report can be purchased from SkillsMarket by contacting Carl Hastings on 020 7841 1019 or click here to email us.