IT contractor pay expected to see improvements this year

Posted by Alex Turner

Contractors in the IT sector have been particularly hard hit by the recession, but very few are likely to see their hourly rates lower further during the 2010.

This is according to new research by ReThink Recruitment, which revealed that just five per cent of IT contractors will see downgrades to their hourly rate over the course of the year.

Only last year, a quarter of IT departments said they intended to reduce contractor pay, with reductions totalling as much as 25 per cent in some cases.

ReThink director Michael Bennett said it is "no surprise" that contractors have suffered at the hands of the economic downturn because of their vulnerability to fluctuations in the market.

"That said, with the job market now tightening rates for contractors should rise ahead of pay increases for permanent staff," he commented.

IT contractor accountants are likely to begin noticing the improvements, although they are expected to begin slowly as the recovery from recession has only just begun.

Contractor UK said today (March 10th) that employments schemes in the IT contracting market place may not always be what they seem.