Federal ICT contractor rates on the rise

Appeared in: The Australian IT
Author: Jennifer Foreshew
Date: May 02, 2011

CONTRACTOR rates are on the way up in the ACT with the April 2011 Peoplebank Intermedium Federal ICT Labour Hire Index reporting increases of about 30 per cent for some in-demand skills.

The Index, which is already more than 20 per cent higher in March compared with the same time a year ago, also noted a return of interstate IT&T contractors to fill skills shortages in Canberra.

The surge in demand for skilled technology workers is due to the commencement of a number of projects, including IT commitments outlined in the 2010 Budget, according to Peoplebank.

Work that had been delayed due to the extended period of uncertainty associated with last year’s federal election has also kicked off.

The flurry of activity is in contrast to the caution shown in the second half of 2010, traditionally the peak months for contract hires, when July was the lowest July figure since the Index began in 2003. It followed an all-time low in April 2010.

Peoplebank chief executive officer Peter Acheson said with projects now at the point of implementation there was strong demand for roles such as project managers and business analysts, as well as contractors with skills in SharePoint and network engineers.

Contract roles that are starting to see pay rises are developer and tester roles, and change managers whose rates have risen by about 30 per cent.

Federal government agencies are currently in the final phase of initiatives to convert contract into permanent roles, in line with targets set out in the Gershon Review to reduce the government’s reliance on contract roles.

Peoplebank, which is the country’s largest IT recruiter, found the strength of the Canberra market meant contractors had the choice of choosing contract roles, with increasing rates, or permanent public service employment.

Mr Acheson said if demand continued as expected further pay rises would lure more skilled workers to the ACT.