CP July 2011 Market Report guide to salary and recruitment trends in the UK IT market

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IT Monitor July 2011
Your 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 Highlights from this month’s results:
to date and comprehensive salary and vacancy trends and
analysis. • Salaries continue to rise across
permanent and contractor roles;
The IT job market continues to surge forward as candidate demand has consistently
however permanent salaries
risen beyond supply month-on-month. June saw another increase in both
are rising at a slower rate after
permanent salaries and contractor pay. With the number of permanent vacancies
months of significant increases.
slowing and contract vacancies rising month-on-month we see this trend continuing
as organisations invest their new budgets on business critical projects. • The number of new telecoms
and retail permanent vacancies
The need for organisations to service ‘business as usual’ requirements and increase
boom.
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 • A substantial increase in the
means that both activity and demand is increasing at a steady rate. Hiring managers number of vacancies recorded in
are recruiting to ensure they can deliver priority projects and can no longer wait. retail for contractors.
The backdrop of cost cutting during the recession has now been replaced with a
• The number of public sector
landscape driven by the need to increase revenues through development of new
contractor vacancies fell
and innovative products and services.
significantly as the cuts start to
There is still a focus on internal process improvement projects in many bite.
organisations across the UK. Once this focus on process change and improved
• A shift from permanent to
back office efficiency is fulfilled, organisations will have created a leaner
contract in vacancies across new
approach to operations. This will free up budgets and resources to concentrate
media.
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 Director
Computer People

sidbarnes@computerpeople.co.uk

www.computerpeople.co.uk


IT Monitor

Demand for permanent staff cools as contractor demand rises

Permanent Contract
Vacancies % Change Vacancies % Change
Number of vacancies:
all sectors 15,470 0.17% 6,057 0.07%

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.

Permanent Contract (per hour)
Number of vacancies:
major sector Vacancies % Change Vacancies % Change

Banking, Insurance and Finance 1,585 1.28% 775 -0.13%
Retail 728 6.59% 132 17.86%
Telecoms 559 2.01% 135 0.5%
Media, New Media and Creative 646 -4.86% 162 -4.52%
Public Sector 272 -1.09% 236 -7.81%



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

Permanent Permanent Contract Contract
% change in (Monthly) (Yearly) (Monthly) (Yearly)
permanent/contract
rates 0.08% 6.15% 1.15% 5.40%

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

Permanent (per annum) Contract (per hour)
% Average % Average
% Average change % Average change
Job title Average change (Year-on- Average change (Year-on-
salary (Monthly) year) salary (Monthly) year)

.Net / C# £39,333 -0.01% 6.64% £38 1.02% 3.29%
Java £47,909 0.05% 0.20% £47 0.40% 5.00%
Oracle £52,307 -0.01% 7.68% £49 1.60% 0.10%
SQL Server £38,361 -0.06% 4.37% £39 -1.23% 7.29%
Business Intelligence £53,197 -0.03% 11.38% £50 -0.30% 0.61%
Web Developer £32,648 0.00% 3.13% £35 -0.45% 10.80%
Project Manager £52,033 -0.01% 5.19% £51 0.30% 7.90%
SAP £67,300 0.00% 4.22% £63 2.43% 5.45%
Testing £47,078 -0.07% 6.26% £41 -1.10% 1.38%
Database £40,794 0.07% 0.56% £45 -1.20% 7.20%
IT Director £76,437 0.05% 3.69% £96 3.80% 10.10%

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.



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.

Permanent Contract
Jobs in demand
IT Industry Developer Developer
Project Manager Analyst
Architect Business Analyst
Business Analyst Project Manager
Web Developer Software Engineer
Senior Developer Consultant
Software Engineer Architect
Administrator Designer
Java Developer Administrator
Designer Java Developer
Support Analyst Test Analyst
Banking, Insurance Developer Analyst
and Finance
Analyst Business Analyst
Business Analyst Developer
Project Manager Project Manager
Consultant Java Developer
Java Developer Test Analyst
Senior Developer Architect
Support Analyst Engineer
C# Developer Consultant
Senior Analyst Senior Analyst



IT Monitor

Permanent Contract
Jobs in demand
Media, New Media Developer Developer
and Creative
Web Developer Analyst
Project Manager Project Manager
Designer Engineer
PHP Developer Designer
Consultant Business Analyst
Architect Web Developer
Business Analyst Architect
Senior Developer PHP Developer
Administrator Flash Developer
Telecommunications Developer Engineer
Consultant Analyst
Project Manager Developer
Architect Project Manager
Project Manager Consultant
Software Engineer Architect
Development Manager Business Analyst
Engineering and Engineer Engineer
Manufacturing
Developer Consultant
Consultant Analyst
Analyst Project Manager
Software Engineer Developer
Support Engineer Business Analyst
Senior Engineer Software Engineer
Business Analyst Support Engineer

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



IT Monitor

Permanent Contract
Jobs in demand
Public Sector Manager Analyst
Analyst Developer
Developer Manager
Consultant Engineer
Engineer Consultant
Architect Project Manager
Project Manager Business Analyst

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
Permanent Contract
London Average % Change % Change Average % Change % Change
Salary (Monthly) (Yearly) hourly rate (Monthly) (Yearly)

.Net £50,643 0.13% 7.02% £44 0.28% 3.20%
Java £58,338 0.31% 0.46% £56 0.18% 5.90%
Oracle £58,498 0.09% 5.63% £50 -0.05% 0.24%
SQL Server £45,989 0.77% 3.85% £45 -0.45% 7.76%
Business Intelligence £64,696 0.62% 11.35% £55 -0.42% 0.56%
Web Developer £38,333 0.59% 3.26% £38 0.19% 11.67%
Project Manager £58,509 0.00% 5.39% £55 -0.82% 8.19%
SAP £67,432 -0.06% 4.42% £65 -0.27% 5.56%
Testing £53,827 0.05% 6.56% £45 0.67% 1.39%
Database £45,930 0.10% 0.86% £47 0.49% 7.57%
CIO £89,005 0.43% 0.10% - - -
IT Director £70,040 -0.14% 5.70% £119 -0.06% 10.72%

Permanent Contract
South East Average % Change % Change Average % Change % Change

.Net £37,545 0.38% 4.93% £35 -0.44% 2.66%
Java £40,336 0.51% 0.33% £43 0.71% 6.20%
Oracle £45,822 0.46% 5.07% £43 0.15% 1.21%
SQL Server £37,086 0.98% 3.06% £39 0.57% 4.88%
Web Developer £32,934 0.43% 3.40% £32 1.42% 8.37%
Project Manager £49,938 0.31% 5.22% £44 -0.27% 7.79%
SAP £59,204 0.40% 4.74% £56 -0.29% 5.16%
Testing £55,291 0.03% 7.33% £31 0.51% 3.13%
Database £41,665 0.26% 1.52% £35 -0.23% 4.26%
CIO - - - - - -
IT Director - - - - - -



IT Monitor

Salaries by region
Permanent Contract
South West Average % Change % Change Average % Change % Change

.Net £33,896 0.58% 5.45% £34 0.75% 3.26%
Java £36,413 1.10% 1.51% £37 -0.26% 3.22%
Oracle £45,336 -0.14% 5.00% £50 0.22% 1.26%
SQL Server £34,963 0.22% 3.85% £31 0.31% 4.74%
Web Developer £29,570 0.76% 3.04% £25 1.28% 8.70%
Project Manager £45,626 0.32% 4.82% £48 0.97% 6.73%
SAP £71,435 0.44% 4.21% £55 0.64% 4.20%
Testing - - - £35 -0.69% 2.17%
Database £33,198 0.25% 1.74% £25 -0.55% 8.20%
CIO - - - - - -

Permanent Contract
East Midlands Average % Change % Change Average % Change % Change

.Net £32,472 -0.25% 2.29% £25 0.45% 3.32%
Java £35,783 1.01% 1.92% £37 -0.54% 6.15%
Oracle £44,531 0.12% 5.11% £37 -0.59% 2.01%
SQL Server £32,987 1.03% 3.49% £31 -0.46% 5.67%
Web Developer £29,181 1.04% 1.49% £19 -1.53% 5.13%
Project Manager £43,736 0.54% 4.73% £50 0.95% 6.96%
SAP £62,666 -0.01% 4.45% £50 0.91% 4.18%
Testing £39,231 0.28% 5.52% £35 0.46% 1.37%
Database £42,662 0.28% 0.47% £29 -1.64% 3.39%
CIO - - - - - -



IT Monitor

Salaries by region
Permanent Contract
West Midlands Average % Change % Change Average % Change % Change

.Net £35,507 0.50% 6.50% £38 -0.48% 2.26%
Java £41,150 0.05% 1.16% £39 1.26% 5.99%
Oracle £41,665 0.00% 6.06% £38 -0.34% 0.27%
SQL Server £34,924 0.21% 6.49% £38 0.73% 6.79%
Web Developer £30,523 1.15% 2.66% £35 -0.88% 8.46%
Project Manager £45,288 0.85% 5.96% £42 0.44% 7.80%
SAP - - - £51 0.83% 4.12%
Testing - - - £36 1.08% 1.46%
Database £39,863 0.54% 0.36% £31 0.03% 7.24%
CIO - - - - - -

Permanent Contract
East of England Average % Change % Change Average % Change % Change

.Net £36,551 0.46% 5.25% £32 0.82% 3.25%
Java £39,687 0.53% 0.91% £38 -0.09% 4.84%
Oracle £45,109 -0.09% 7.34% £47 0.20% 0.29%
SQL Server £37,230 0.01% 4.21% £31 1.41% 7.75%
Web Developer £30,179 0.73% 3.89% £25 0.90% 8.49%
Project Manager £46,842 -0.06% 5.49% £44 0.25% 5.01%
SAP £67,471 0.16% 3.95% £56 0.84% 2.23%
Testing £40,088 0.44% 5.19% £31 -1.45% 1.40%
Database £39,927 0.62% 1.40% £28 -0.19% 6.31%
CIO - - - - - -



IT Monitor

Salaries by region
Permanent Contract
Yorkshire and Average % Change % Change Average % Change % Change
Humberside Salary (Monthly) (Yearly) hourly rate (Monthly) (Yearly)

.Net £34,356 0.37% 6.43% £34 -1.18% 3.31%
Java £37,411 0.94% 1.20% £38 0.93% 4.93%
Oracle £40,551 0.96% 5.39% £43 0.53% 2.21%
SQL Server £35,089 0.31% 4.58% £30 -0.15% 4.79%
Business Intelligence £35,861 0.27% 8.88% £42 1.11% 0.58%
Web Developer £28,599 1.02% 3.15% £29 0.93% 7.78%
Project Manager £44,297 0.69% 5.65% £44 -1.02% 5.86%
SAP £53,356 0.21% 3.23% £55 0.07% 3.22%
Testing £30,677 0.54% 4.54% £34 -0.15% 2.29%
Database £36,079 0.37% 2.65% £26 1.54% 5.18%
CIO - - - - - -

Permanent Contract
North West Average % Change % Change Average % Change % Change

.Net £34,624 0.99% 6.45% £34 -0.95% 2.20%
Java £37,042 -0.21% 1.24% £38 0.19% 5.91%
Oracle £40,189 -0.07% 5.50% £43 0.19% 0.18%
SQL Server £35,323 0.76% 4.66% £30 -0.13% 6.75%
Business Intelligence £36,190 1.03% 8.97% £42 0.91% 0.69%
Web Developer £28,351 -0.20% 3.19% £28 -1.30% 8.35%
Project Manager £44,176 0.20% 5.79% £45 1.12% 7.86%
SAP £53,520 -0.39% 3.35% £55 -0.04% 4.14%
Testing £30,956 1.22% 4.46% £34 0.24% 1.45%
Database £36,044 -0.11% 2.73% £26 0.79% 7.38%
CIO - - - - - -



IT Monitor

Salaries by region
Permanent Contract
North East Average % Change % Change Average % Change % Change

.Net £34,586 0.78% 6.48% £34 -0.77% 3.24%
Java £37,317 0.53% 1.28% £38 -0.46% 6.25%
Oracle £40,473 0.64% 5.48% £43 1.08% 2.03%
SQL Server £35,208 0.41% 4.67% £29 -1.40% 5.69%
Web Developer £28,558 0.61% 3.15% £29 1.53% 5.15%
Project Manager £43,988 -0.16% 5.74% £44 -1.06% 6.92%
SAP £53,484 0.31% 3.34% £55 0.09% 4.07%
Testing £30,823 0.76% 4.45% £34 0.81% 1.41%
Database £36,094 0.26% 2.90% £25 -1.45% 3.26%
CIO - - - - - -

Permanent Contract
Scotland Average % Change % Change Average % Change % Change

.Net £34,970 -0.11% 4.53% £34 0.20% 3.21%
Java £35,357 0.67% 1.18% £38 -1.05% 4.84%
Oracle £40,518 0.89% 7.10% £38 0.06% 2.25%
SQL Server £35,072 0.16% 4.14% £29 -1.52% 4.78%
Business Intelligence £50,142 -0.16% 10.44% £40 -0.10% 0.67%
Web Developer £33,687 -0.03% 3.72% £25 -1.82% 7.69%
Project Manager £38,660 0.73% 5.28% £43 -0.05% 5.99%
SAP £45,755 0.87% 4.59% £49 -0.66% 3.24%
Testing - - - £34 0.85% 2.32%
Database £39,725 0.77% 4.20% £30 1.46% 5.24%
CIO - - - - - -



IT Monitor

Salaries by region
Permanent Contract
Wales Average % Change % Change Average % Change % Change

.Net £34,042 0.28% 7.10% £35 1.20% 3.43%
Java £31,702 0.39% 0.33% £38 -0.25% 4.56%
Oracle £44,168 -0.08% 8.68% £38 -1.22% 2.12%
SQL Server £33,755 1.16% 4.75% £30 -0.33% 2.86%
Business Intelligence - - - £40 -0.41% 1.61%
Web Developer £29,235 -0.02% 2.35% £24 -1.85% 3.64%
Project Manager £43,608 0.51% 3.73% £44 -0.23% 4.79%
SAP - - - £50 0.49% 2.23%
Testing - - - £32 -1.51% 2.37%
Database £30,078 -0.12% 3.40% £25 1.31% 4.19%
CIO - - - - - -

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

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.


CP July 2011 Market Report guide to salary and recruitment trends in the UK IT market

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CP July 2011 Market Report guide to salary and recruitment trends in the UK IT market