As Managing Director of Just IT Recruitment, a specialist IT Recruitment Company, the most frequently asked question directed to me in 2009 was ‘what is happening in the market’? And to be honest it was very difficult to give anybody an answer that was encouraging. The recessionary market had an impact on almost all skill sets within IT; reductions in headcount impacted on support services, lower investment in applications and processes reduced demand for development specialists and tightened budgets meant a decline in project work. No doubt in 2010 I will be asked the same question – so how do I view a slight improvement in the economic cycle in terms of IT jobs?
1) Most companies have stopped reducing headcount. Two things happen as a result of this; firstly the size of IT support teams have stabilised and secondly there will be more churn within these teams as staff feel more confident in moving away from roles that do not meet their needs. That means that the support market (and particularly at entry level) will mobilise some more, although growth in support teams is likely to be limited.
2) Cost minimisation exercises are improving bottom line so now companies are seeking a competitive advantage. This means that development work will start; speed, efficiency, increased productivity, proactive knowledge management – all areas that result in greater profit levels. Whilst not at the levels seen in 2006/7, the demand for .Net/Java and C variants will be key skills.
3) Funding will be released, but the threat of a double dip means that this funding will be limited. Therefore available money will be spent on projects, and so there will be an increase in contract demand. However it seems likely that these contracts will be short term, and demand from out of work contract staff will keep rates at the lower levels seen in 2009.
And 2011? Certainly the year has started very well for Just IT – so contact us if you are looking for advice and support about how to get your career moving forward.
Sunil Duggal – Managing Director Just IT Recruitment
