Cp It Monitor Factsheet July 2011

www.computerpeople.co.uk

IT Monitor / Computer People Page 1 of 13

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 Computer People’s IT Monitor continues to equip candidates and hiring mangers with the IT industry’s most up to date and comprehensive salary and vacancy trends and analysis.

The IT job market continues to surge forward as candidate demand has consistently risen beyond supply month-on-month. July saw another increase in both permanent salaries and contractor pay. With the number of permanent vacancies slowing and contract vacancies rising month-on-month we see this trend continuing as organisations invest their new budgets on business critical projects.

The need for organisations to service ‘business as usual’ requirements and increase revenues whilst decreasing costs is fuelling the war for IT talent. Projects that were previously shelved are now coming back on line and the addition of new projects means that both activity and demand is increasing at a steady rate. Hiring managers are recruiting to ensure they can deliver priority projects and can no longer wait. The backdrop of cost cutting during the recession has now been replaced with a landscape driven by the need to increase revenues through development of new and innovative products and services.

There is still a focus on internal process improvement projects in many organisations across the UK. Once this focus on process change and improved back office efficiency is fulfilled, organisations will have created a leaner approach to operations. This will free up budgets and resources to concentrate on future workforce requirements to implement new operational procedures. This methodology of organisational change and transition, post economic downturn will safeguard organisations, creating a sound investment that will provide viability for the future.

Regards,

Sid Barnes, Executive DirectorComputer People

[email protected]

July 2011

Highlights from this month’s results:

• Salaries continue to rise across permanent and contractor roles; however permanent salaries are rising at a slower rate after months of significant increases.

• The number of new telecoms and retail permanent vacancies boom.

• A substantial increase in the number of vacancies recorded in retail for contractors.

• The number of public sector contractor vacancies fell significantly as the cuts start to bite.

• A shift from permanent to contract in vacancies across new media.



Demand for permanent staff cools as contractor demand rises

Last month we saw a (0.17%) decrease in the number permanent vacancies and a slight 0.07% increase in contract vacancies signalling that the IT market across all sectors remains stable. There were 15,470 permanent vacancies and approximately 6,057 unique contract vacancies showing a minor shift from the previous month of 15,497 and 6,053 respectively.

We are seeing prior month’s trends continue as contractor roles appear to be increasing whilst permanent roles remain in steady demand. As it becomes increasingly competitive to fill permanent roles, many organisations are looking for interim contract solutions.

This trend is typical of the summer months. As people tend to take extended leave, contractors are called in to provide cover on key projects. In some cases, short term summer projects are initiated over these months as business slows.

We expect the number of contract vacancies to remain strong, but we continue to be mindful that consistent decreases in the number of permanent vacancies across all sectors may increase pressure on organisations to hold onto existing permanent staff with the right skill sets.

Sector breakdowns

Retail

There has been a dramatic increase in the number of permanent and contract retail vacancies last month with an increase of 6.59% for permanent roles and 17.86% for contract roles month-on-month. The number of vacancies has increased to 728 (from 683) and 132 (from 112) respectively. The sector is also experiencing a high demand for candidates with specific IT skills as companies invest in e-commerce technologies to diversify service offering as spending patterns continue to shift to online in place of high street shopping. Companies like ASOS have set the pace for online shopping which others are now following.

IT Monitor

Vacancies

6,057

% Change

0.07%

Vacancies

15,470

% Change

0.17%

Permanent Contract

Number of vacancies: all sectors

Vacancies

1,585

728

559

646

272

% Change

1.28%

6.59%

2.01%

-4.86%

-1.09%

Vacancies

775

132

135

162

236

% Change

-0.13%

17.86%

0.5%

-4.52%

-7.81%

Permanent

Number of vacancies: major sector

Contract (per hour)

Banking, Insurance and Finance

Retail

Telecoms

Media, New Media and Creative

Public Sector



IT Monitor

Public Sector

The number of contractor vacancies dropped dramatically by 7.81%, recording only 236 new vacancies in June compared to 256 in May. The number of new permanent vacancies in June was also down (1.09%) compared to May. We saw a big rise in the number of vacancies across the public sector in April as hiring managers bulk resourced as budgets were released. This trend hasn’t continued, as greater cuts have since been announced and unrest in the industry continues to build.

Telecoms

Demand for IT staff in telecoms remains high. As anticipated, new projects are generating demand for IT Telecoms specialists. In May we saw the number of permanent telecoms vacancies increase significantly. Last month permanent vacancies continued to increase significantly (2.01%) whilst the rate of increase in the number of contractor vacancies slowed marginally (0.5%).

Banking, finance and insurance

We are seeing a levelling off in contractor vacancies (down 0.13%) as many banking, insurance and finance projects halt during the quieter summer months. The changes in vacancies are mostly attributed to banks initially filling vacancies with contractors. With project resources having been sourced, banks are now looking to fill permanent roles (shown by a 1.28% increase in vacancies to drive more strategic projects and initiatives forward.

Media, new media and creative

As predicted, for the third month running we’ve seen a drop in the number of media, new media and creative vacancies. Month-on-month vacancies have decreased by 4.86% and 4.52% for permanent and contract vacancies respectively. This industry sector was among the first to recruit post-recession. So it no longer has such immediate requirements, reverting to ad-hoc hiring giving rise to more sporadic trends.

Monthly salary trends

1.15% 5.40%0.08% 6.15%

Permanent(Monthly)

Contract(Monthly)

Permanent(Yearly)

Contract(Yearly)% change in

permanent/contract rates

Permanent salaries for IT professionals increased by 0.08% last month. As organisations become increasingly aware of the need for greater IT investment for integration projects which create internal efficiencies and impact the bottom line. Contractor pay continues to grow at an even faster pace, increasing 1.15% month-on-month and by 5.40% year-on-year. Greater market confidence this year compared to last seems to be putting upward pressure on contractor pay.

Although economic recovery is far from over, steps have been made in the right direction. As this continues we expect to see salaries increase, generating further pressure on hiring managers’ budgets.



IT Monitor

In June we saw SAP contractor pay rise significantly (2.43%). This rise is reflective of the skill set as SAP is seen by the industry as a premium skill and a highly valued resource. Scarcity of SAP skills and experience is contributing to upward pressure on contractor pay, with many SAP practitioners working throughout Europe and in Germany in particular. SAP practitioners are integral to efficiency and integration projects which are crucial to businesses at the moment.

We have seen a 3.80% increase in salaries for contract IT directors month-on-month and a 10.10% increase year-on-year as businesses begin to understand the importance of an integrated IT strategy to drive the organisation. The previous short term and tactical approach of increasing headcount at a more junior level to deliver projects has been replaced with a need for a strategic head of IT to drive strategy and engender a culture of integration, efficiency and effectiveness within organisations. As many organisations make IT a key priority in their business, the importance of having the right pilot to direct the department is imperative to the successful implementation of a sound IT strategy.

We saw contractor pay across core programming disciplines decrease in June including testing (down 1.10%), database (down 1.20%) and SQL server (down 1.23%). The reality is that, as technology speeds up and is more capable of handling ever increasing amounts of data, older technologies are being superseded by new technologies such as cloud, portable device applications and issues such as security and hacking.

Jobs in demand

Last month we saw a slight shift in jobs in demand as developers, project managers and analysts top the table, across all sectors. A reoccurring theme is that consultants are working their way up the list.

Average salary

£38

£47

£49

£39

£50

£35

£51

£63

£41

£45

£96

% Average change (Monthly)

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-on-year)

3.29%

5.00%

0.10%

7.29%

0.61%

10.80%

7.90%

5.45%

1.38%

7.20%

10.10%

Averagesalary

£39,333

£47,909

£52,307

£38,361

£53,197

£32,648

£52,033

£67,300

£47,078

£40,794

£76,437

% Average change (Monthly)

-0.01%

0.05%

-0.01%

-0.06%

-0.03%

0.00%

-0.01%

0.00%

-0.07%

0.07%

0.05%

% Average change (Year-on-year)

6.64%

0.20%

7.68%

4.37%

11.38%

3.13%

5.19%

4.22%

6.26%

0.56%

3.69%

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

Demand for core developers, business intelligence specialists and project managers that can design, build and deliver new and innovative products to boost numbers of new customers remains very high. However, as we have seen with salaries, it will be those people with new technology skills and experience that will be in highest demand going forward.

IT Industry 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

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

Permanent

Jobs in demand

Contract

Banking, Insurance and Finance



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)

Media, New Media and Creative

Developer

Analyst

Project Manager

Engineer

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

Developer

Web Developer

Project Manager

Designer

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

Permanent

Jobs in demand

Contract

Telecommunications

Engineering and Manufacturing



IT Monitor

Public Sector Analyst

Developer

Manager

Engineer

Consultant

Project Manager

Business Analyst

Manager

Analyst

Developer

Consultant

Engineer

Architect

Project Manager

Permanent

Jobs in demand

Contract

Salaries by region

As organisations are increasingly moving their operations outside of London in search of cheaper office space demand for IT staff in the West has manifested itself in the form of higher salaries. There is now less of a need for businesses to be located in capital or major cities as technology is now developed enough to allow operations to be based more remotely however, it doesn’t matter where you develop technology but a sales presence in the main cities is more crucial to reach consumer markets.

Once organisations make moves outside of capital cities salaries become less of a burden on hiring managers’ budgets as a lower cost of living lessens the demand for high rates of pay.



IT Monitor

Salaries by region

.Net

Java

Oracle

SQL Server


Web Developer

Project Manager

SAP

Testing

Database

CIO

IT Director

.Net

Java

Oracle

SQL Server


Web Developer

Project Manager

SAP

Testing

Database

CIO

IT Director

Average hourly rate

£44

£56

£50

£45

£55

£38

£55

£65

£45

£47

-

£119

Average hourly rate

£35

£43

£43

£39

£53

£32

£44

£56

£31

£35

-

-

% Change (Monthly)

0.28%

0.18%

-0.05%

-0.45%

-0.42%

0.19%

-0.82%

-0.27%

0.67%

0.49%

-

-0.06%

% Change (Monthly)

-0.44%

0.71%

0.15%

0.57%

-0.89%

1.42%

-0.27%

-0.29%

0.51%

-0.23%

-

-

% Change (Yearly)

3.20%

5.90%

0.24%

7.76%

0.56%

11.67%

8.19%

5.56%

1.39%

7.57%

-

10.72%

% Change (Yearly)

2.66%

6.20%

1.21%

4.88%

1.60%

8.37%

7.79%

5.16%

3.13%

4.26%

-

-

AverageSalary

£50,643

£58,338

£58,498

£45,989

£64,696

£38,333

£58,509

£67,432

£53,827

£45,930

£89,005

£70,040

AverageSalary

£37,545

£40,336

£45,822

£37,086

£49,160

£32,934

£49,938

£59,204

£55,291

£41,665

-

-

% Change (Monthly)

0.13%

0.31%

0.09%

0.77%

0.62%

0.59%

0.00%

-0.06%

0.05%

0.10%

0.43%

-0.14%

% Change (Monthly)

0.38%

0.51%

0.46%

0.98%

0.74%

0.43%

0.31%

0.40%

0.03%

0.26%

-

-

% Change (Yearly)

7.02%

0.46%

5.63%

3.85%

11.35%

3.26%

5.39%

4.42%

6.56%

0.86%

0.10%

5.70%

% Change (Yearly)

4.93%

0.33%

5.07%

3.06%

10.08%

3.40%

5.22%

4.74%

7.33%

1.52%

-

-

Permanent

Permanent

London

South East

Contract

Contract



IT Monitor

Salaries by region

.Net

Java

Oracle

SQL Server


Web Developer

Project Manager

SAP

Testing

Database

CIO

IT Director

.Net

Java

Oracle

SQL Server


Web Developer

Project Manager

SAP

Testing

Database

CIO

IT Director

Average hourly rate

£34

£37

£50

£31

£45

£25

£48

£55

£35

£25

-

-

Average hourly rate

£25

£37

£37

£31

£45

£19

£50

£50

£35

£29

-

-

% Change (Monthly)

0.75%

-0.26%

0.22%

0.31%

-0.03%

1.28%

0.97%

0.64%

-0.69%

-0.55%

-

-

% Change (Monthly)

0.45%

-0.54%

-0.59%

-0.46%

-0.11%

-1.53%

0.95%

0.91%

0.46%

-1.64%

-

-

% Change (Yearly)

3.26%

3.22%

1.26%

4.74%

1.20%

8.70%

6.73%

4.20%

2.17%

8.20%

-

-

% Change (Yearly)

3.32%

6.15%

2.01%

5.67%

1.68%

5.13%

6.96%

4.18%

1.37%

3.39%

-

-

AverageSalary

£33,896

£36,413

£45,336

£34,963

£37,884

£29,570

£45,626

£71,435

-

£33,198

-

-

AverageSalary

£32,472

£35,783

£44,531

£32,987

£30,218

£29,181

£43,736

£62,666

£39,231

£42,662

-

-

% Change (Monthly)

0.58%

1.10%

-0.14%

0.22%

0.48%

0.76%

0.32%

0.44%

-

0.25%

-

-

% Change (Monthly)

-0.25%

1.01%

0.12%

1.03%

1.11%

1.04%

0.54%

-0.01%

0.28%

0.28%

-

-

% Change (Yearly)

5.45%

1.51%

5.00%

3.85%

7.95%

3.04%

4.82%

4.21%

-

1.74%

-

-

% Change (Yearly)

2.29%

1.92%

5.11%

3.49%

4.06%

1.49%

4.73%

4.45%

5.52%

0.47%

-

-

Permanent

Permanent

South West

East Midlands

Contract

Contract



IT Monitor

Salaries by region

.Net

Java

Oracle

SQL Server


Web Developer

Project Manager

SAP

Testing

Database

CIO

IT Director

.Net

Java

Oracle

SQL Server


Web Developer

Project Manager

SAP

Testing

Database

CIO

IT Director

Average hourly rate

£38

£39

£38

£38

£48

£35

£42

£51

£36

£31

-

-

Average hourly rate

£32

£38

£47

£31

£44

£25

£44

£56

£31

£28

-

-

% Change (Monthly)

-0.48%

1.26%

-0.34%

0.73%

-0.97%

-0.88%

0.44%

0.83%

1.08%

0.03%

-

-

% Change (Monthly)

0.82%

-0.09%

0.20%

1.41%

-0.63%

0.90%

0.25%

0.84%

-1.45%

-0.19%

-

-

% Change (Yearly)

2.26%

5.99%

0.27%

6.79%

0.79%

8.46%

7.80%

4.12%

1.46%

7.24%

-

-

% Change (Yearly)

3.25%

4.84%

0.29%

7.75%

3.62%

8.49%

5.01%

2.23%

1.40%

6.31%

-

-

AverageSalary

£36,551

£39,687

£45,109

£37,230

£28,092

£30,179

£46,842

£67,471

£40,088

£39,927

-

-

AverageSalary

£35,507

£41,150

£41,665

£34,924

£45,586

£30,523

£45,288

-

-

£39,863

-

-

% Change (Monthly)

0.50%

0.05%

0.00%

0.21%

0.66%

1.15%

0.85%

-

-

0.54%

-

-

% Change (Monthly)

0.46%

0.53%

-0.09%

0.01%

0.86%

0.73%

-0.06%

0.16%

0.44%

0.62%

-

-

% Change (Yearly)

6.50%

1.16%

6.06%

6.49%

10.42%

2.66%

5.96%

-

-

0.36%

-

-

% Change (Yearly)

5.25%

0.91%

7.34%

4.21%

9.22%

3.89%

5.49%

3.95%

5.19%

1.40%

-

-

Permanent

Permanent

West Midlands

East of England

Contract

Contract



IT Monitor

Salaries by region

.Net

Java

Oracle

SQL Server


Web Developer

Project Manager

SAP

Testing

Database

CIO

IT Director

.Net

Java

Oracle

SQL Server


Web Developer

Project Manager

SAP

Testing

Database

CIO

IT Director

Average hourly rate

£34

£38

£43

£30

£42

£29

£44

£55

£34

£26

-

-

Average hourly rate

£34

£38

£43

£30

£42

£28

£45

£55

£34

£26

-

-

% Change (Monthly)

-1.18%

0.93%

0.53%

-0.15%

1.11%

0.93%

-1.02%

0.07%

-0.15%

1.54%

-

-

% Change (Monthly)

-0.95%

0.19%

0.19%

-0.13%

0.91%

-1.30%

1.12%

-0.04%

0.24%

0.79%

-

-

% Change (Yearly)

3.31%

4.93%

2.21%

4.79%

0.58%

7.78%

5.86%

3.22%

2.29%

5.18%

-

-

% Change (Yearly)

2.20%

5.91%

0.18%

6.75%

0.69%

8.35%

7.86%

4.14%

1.45%

7.38%

-

-

AverageSalary

£34,356

£37,411

£40,551

£35,089

£35,861

£28,599

£44,297

£53,356

£30,677

£36,079

-

-

AverageSalary

£34,624

£37,042

£40,189

£35,323

£36,190

£28,351

£44,176

£53,520

£30,956

£36,044

-

-

% Change (Monthly)

0.37%

0.94%

0.96%

0.31%

0.27%

1.02%

0.69%

0.21%

0.54%

0.37%

-

-

% Change (Monthly)

0.99%

-0.21%

-0.07%

0.76%

1.03%

-0.20%

0.20%

-0.39%

1.22%

-0.11%

-

-

% Change (Yearly)

6.43%

1.20%

5.39%

4.58%

8.88%

3.15%

5.65%

3.23%

4.54%

2.65%

-

-

% Change (Yearly)

6.45%

1.24%

5.50%

4.66%

8.97%

3.19%

5.79%

3.35%

4.46%

2.73%

-

-

Permanent

Permanent

Yorkshire and Humberside

North West

Contract

Contract



IT Monitor

Salaries by region

.Net

Java

Oracle

SQL Server


Web Developer

Project Manager

SAP

Testing

Database

CIO

IT Director

.Net

Java

Oracle

SQL Server


Web Developer

Project Manager

SAP

Testing

Database

CIO

IT Director

Average hourly rate

£34

£38

£43

£29

£42

£29

£44

£55

£34

£25

-

-

Average hourly rate

£34

£38

£38

£29

£40

£25

£43

£49

£34

£30

-

-

% Change (Monthly)

-0.77%

-0.46%

1.08%

-1.40%

-0.16%

1.53%

-1.06%

0.09%

0.81%

-1.45%

-

-

% Change (Monthly)

0.20%

-1.05%

0.06%

-1.52%

-0.10%

-1.82%

-0.05%

-0.66%

0.85%

1.46%

-

-

% Change (Yearly)

3.24%

6.25%

2.03%

5.69%

1.67%

5.15%

6.92%

4.07%

1.41%

3.26%

-

-

% Change (Yearly)

3.21%

4.84%

2.25%

4.78%

0.67%

7.69%

5.99%

3.24%

2.32%

5.24%

-

-

AverageSalary

£34,586

£37,317

£40,473

£35,208

£36,033

£28,558

£43,988

£53,484

£30,823

£36,094

-

-

AverageSalary

£34,970

£35,357

£40,518

£35,072

£50,142

£33,687

£38,660

£45,755

-

£39,725

-

-

% Change (Monthly)

0.78%

0.53%

0.64%

0.41%

0.59%

0.61%

-0.16%

0.31%

0.76%

0.26%

-

-

% Change (Monthly)

-0.11%

0.67%

0.89%

0.16%

-0.16%

-0.03%

0.73%

0.87%

-

0.77%

-

-

% Change (Yearly)

6.48%

1.28%

5.48%

4.67%

8.88%

3.15%

5.74%

3.34%

4.45%

2.90%

-

-

% Change (Yearly)

4.53%

1.18%

7.10%

4.14%

10.44%

3.72%

5.28%

4.59%

-

4.20%

-

-

Permanent

Permanent

North East

Scotland

Contract

Contract



Salaries by region

.Net

Java

Oracle

SQL Server


Web Developer

Project Manager

SAP

Testing

Database

CIO

IT Director

Average hourly rate

£35

£38

£38

£30

£40

£24

£44

£50

£32

£25

-

-

% Change (Monthly)

1.20%

-0.25%

-1.22%

-0.33%

-0.41%

-1.85%

-0.23%

0.49%

-1.51%

1.31%

-

-

% Change (Yearly)

3.43%

4.56%

2.12%

2.86%

1.61%

3.64%

4.79%

2.23%

2.37%

4.19%

-

-

AverageSalary

£34,042

£31,702

£44,168

£33,755

-

£29,235

£43,608

-

-

£30,078

-

-

% Change (Monthly)

0.28%

0.39%

-0.08%

1.16%

-

-0.02%

0.51%

-

-

-0.12%

-

-

% Change (Yearly)

7.10%

0.33%

8.68%

4.75%

-

2.35%

3.73%

-

-

3.40%

-

-

Permanent

Wales

Contract

IT Monitor

It’s all about you

Work with Computer People and you will be working with genuine people dedicated to helping you achieve your career heights and realise your full potential. Help us understand your real career goals and we’ll use our energy, commitment and know-how to seek out career opportunities on your behalf. As an employer, you’ll find that we get a real buzz from helping businesses thrive and prosper by sourcing the right people with the right skills and attitude to propel your business to new heights. And because we focus on building strong relationships with jobseekers, we can move quickly to help you find the right talent. We understand fully the dramatic effect we can have on your future, your life and your business. Because you really matter to us.

In our opinion the strong contractor demand we are currently seeing will extend into Q3 and beyond. The pressures on attracting good permanent staff will continue and staff retention will become as important as staff attraction for the remainder of 2011. With a levelling off in the number of permanent vacancies being filled with contract resource the contractor market is becoming increasingly candidate led. More choice and opportunity for candidates will see organisations focusing on streamlining their hiring processes - speed and agility will continue to be key to securing the

Technology

Cp It Monitor Factsheet July 2011