Melbourne IT&T Market Update: April 2010

Demand for both permanent and contract ICT staff – which first began strengthening at the end of 2009 – has continued during Q1 of 2010.

In fact, the number of roles available has grown by 100 percent since January 2010 (a total of a 200 percent increase on levels recorded in July 2009).

Additionally, the average number of hours worked by contractors has risen – albeit slightly – as employers push ahead with transformational projects that will enable them to gain competitive advantage as market conditions improve.

Businesses across-the-board hiring Java, .NET and Project staff

While the core systems upgrade projects in the financial services sector are underway and continue to absorb IT skills – we are seeing broadening demand from across the industry for Business Analysts, Testers, ERP skills (both Oracle and SAP), Java Developers and .NET Developers.

Upward salary pressure becoming evident

The upward pressure on salaries and contract rates that is expected to be a major theme of 2010 has already had an impact on contract rates – which have risen by up to 5 percent.

Additionally, average hours worked by contractors are trending upwards – although levels are not significant yet, it is expected that the combination of available work and rising rates will increase the number of candidates seeking contract roles during 2010.

While permanent salaries are yet to record a measurable increase, the strengthening market and growth in the number of jobs available has meant that candidates are in a position to select from several job offers.

In short, candidates are back in the land of opportunity and will navigate toward companies that are responsive during the recruitment process, provided interesting projects are on offer and the pay rates competitive.

The implication of this trend is that companies with a clear recruitment plan and fluid efficient recruitment processes will attract talent and have the edge over companies with a reactive approach to recruitment.