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IT contractor job market picks up

IT contractor job market picks up

The market for outsourced IT services is set grow significantly over the coming years, and this should mean good news for small businesses, limited company contractors and umbrella company workers in the UK.

IDC, a market intelligence organisation, has just released a report that states that IT outsourcing services in the UK, Germany and the Nordics will increase quicker than in the rest of the western European countries. However, this is the long term outlook and competition is likely to remain fierce this year.

The company’s research shows that although total demand across the western European market is expected to remain flat in 2010, between 2010 and 2014, the average growth will be 3.4%.

Research manager, Laura Converso, said that they expect a slow return to growth and an upturn in outsourcing projects as we go into the second half of this year.

We are already starting to see an increase in IT contractor vacancies in the UK. According to the IT Jobs Board, contract positions increased by 54% in the first quarter of this year whilst the overall number of IT jobs went up by 16% compared to the final quarter of 2009.

The IT Jobs Board currently shows more than 21,000 jobs with IT manager and IT support roles making up the largest proportion of the vacancies. Specialist skills in IT security and .net are also very much in demand.

What’s not clear at the moment, is how many of these jobs are being advertised under an Intra Company Transfer arrangement, and are likely to filled by cheap foreign workers at the expense of freelancers in the UK. The REC has already launched a campaign to create a ‘level playing field’ in this area and the PCG have also been very active in protecting the rights of UK based contractors and freelancers.

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