Financial IT contractors’ pay at five year low

IT contractors’ salary in the financial services sector has decreased to its lowest point in five years, according to recent research by iprofile.org and the Association of Technology Staffing Companies (ATSCo).

Pay for an IT contractor has declined by 12 per cent in its first substantial fall since the credit crunch began last August, the research said.

Within the past six months, pay has fallen to an average £44 per hour, six pounds less than the median hourly rate for the fourth quarter of 2007.

The reason for the fall is not a slashing of current contracts. Instead, new contracts are being signed at lower rates. However, professionals with these skills will still be sought after in the future, the recruitment bodies said.

“The credit crunch and the Societe General scandal have both led to significant demand for IT professionals with experience in areas such as risk management and compliance systems,” said Karl Gregory, marketing director at iProfile.org.

Different areas of IT may be getting a boost as a direct result of the credit crunch. “Post-merger integration of IT systems will also generate demand as the crisis accelerates consolidation in the financial services sector,” Gregory said.

The latest IT mergers and acquisitions figures show that the credit crunch has finally hit the IT industry.

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