Feeds

Budget-slash fest shaves 10% off IT mercenaries' day rates

But RBS tech fiasco may shower COBOL mateys in gold

Top 5 reasons to deploy VMware with Tegile

Cost-cutting at banks and a squeeze in the public sector have pushed IT contractor day rates in the UK down by £38 since 2010.

Freelancing tech bods are therefore taking home £9,000 a year less than two years ago. But the recent RBS/Natwest banking crash offers a silver lining for developers: those skilled in the ancient ways of COBOL and mainframes are likely to see a few more top gigs heading their way in the next year.

The average daily rate for an IT contract job in the UK is now £375, down 9 per cent from £413 in 2010.

The data comes from IT Jobs Watch, which analysed thousands of contract gigs advertised with a daily rate in the three months to September 2012 and compared the average to the same period in 2011 and 2010.

The pay trim since 2010 works out as an average yearly fall of £9,000 - bringing a typical tech mercenary's salary down from £99,120 to £90,000 for a 48-week year. Day rates tend to lie between £260 and £550. Nine-in-ten gigs were advertised at a daily rate of more than £260; only 10 per cent were more than £550, the numbers showed.

But beyond the statistics, this year's RBS IT meltdown, and a raft of new government regulation on banks, has added a silver lining to the metaphorical clouds over tech contractors. Bean counters in the finance industry may have been responsible for much of the dip in day rates - daily fees in the City of London fell 16 per cent compared to last year - but the sector may fuel an uptick over the next year or two.

Jobs site IT Contractor predicts that COBOL, PL/I and mainframe types may be in luck in 2013: shaken up by the RBS screw-up, bank bosses have peered into their big iron systems and are looking for people who know their ACL from their elbow. The website's bods concluded:

The previous attitude of the banks to these old legacy systems, written as far back as the early 1970s was ‘if it ain’t broke, don’t fix it’. However, the fear now is that if the systems do get ‘broke’ the banks don’t have the skills and knowledge to fix them.

Many of the banks (and any company which processes transactions overnight using legacy systems) will now have to bite the bullet and finally rewrite these systems leading to a greater demand for IT contractors in the financial sector which should cut the numbers of available contractors, which should boost daily rates in the medium term.

All good news for the contract guy. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Looking for a job in Europe? Experienced IT staff needed in UK, Italy and Germany
New graduates need life skills, says Euro Commish report
‘For the love of Pete, America, learn about decent chocolate’
If that's your only gripe about a life in LA, lucky you!
IT JOB OUTSOURCING: Will it ever END?
Let's look at the economics behind it...
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Want to break Netflix? It'll pay you to do the job
'Senior Chaos Engineer' sought to inflict all sorts of nasty, nasty, pain
HOT BABES! Worried you won't get that JOB in IT? MENTION how hot you are
'Don't hate me 'cos I'm beautiful' ploy for sad honeys
Oracle to DBAs: your certification is about to become worthless paper
So hurry up and get a new one, will all of you who took exams for 10g and lower?
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.