IT salaries are still rising

Demand for IT staff is expected to grow 12 per cent over the next two years.

The 2002 NCC Salaries and Staff Issues in IT survey predicts that the demand for skilled systems developers will increase by up to 18 per cent, suggesting that spending on the next generation of technology will continue despite the downturn.

Interviews with 490 IT managers reveal that overall demand for staff remains virtually unchanged from last year.

Salary levels may be slipping but the average rate of salary increases is only marginally down from 4.9 per cent compared with 5.2 per cent last year. Wages in the IT, business services and finance sectors are the biggest risers.

Dominic Cornford, research consultant at the NCC said the survey results painted a picture of restraint rather than doom and gloom.

'The figures suggest people are a bit more cautious and are starting to hold back, but it's not "we're on the brink of an abyss' stuff."'

"There's an undue amount of pessimism and a lack of confidence from clients and candidates alike," said Simon Crockett,operations director at IT recruitment specialist Michael Page Technology.

The majority of respondents think they will need to develop new IT skills over the next year, with XML and Java top of their technology wish list.

'Demand is still there but it's outstripped by supply. What makes a difference in commercial skills.

Clientsare also much more specific about the skill sets they need. Small companies want generalists but they aren't recruiting,' Crockett added.

Although the survey found that the number of companies using contractors is up two per cent on last year to 31 per cent, fewer respondents report using large number of temporary IT staff. "Contractors are certainly used as a stop gap," Cornford said.

'They are also one of the first things to go when companies look to cut costs.'