IT staff's pay rose between three and five per cent last year

Level of IT hiring last year was comparable to the market in 2007

Most IT staff switching jobs last year negotiated pay rises of between three and five per cent as demand for skilled IT professionals rose, according to a survey from recruitment company Robert Walters.

In London, competition between employers for top talent intensified in the last three months of 2010, the survey says.

Some employers offered potential recruits bonus payments to tempt them away from their current job. Companies also made counter-offers to try to stop IT professionals being tempted away.

"Recruitment conditions improved markedly in 2010," said Jason Addicott, associate director of IT recruitment at Robert Walters. "Although most hiring activity was at the mid to senior level, a small number of firms also recruited at the graduate level as they not only invested in the future but also looked to free up their senior staff to focus on development and strategy."

The general level of IT hiring last year was comparable to the market in 2007, the report found.

Investment banks and investment management firms were particularly active recruiters during 2010, and generally offered better salaries. The financial sector sought staff to improve online tracking systems, with demand for Java, C# and .NET developers particularly high. During the second half of the year, infrastructure professionals were increasingly in demand as financial services firms moved to shared services or cloud computing.

Commercial businesses hired significantly more IT professionals in 2010 than the previous year, consistently recruiting infrastructure specialists and professionals with solid enterprise backgrounds. Linux and PHP developers and those with iPhone and BlackBerry expertise were particularly in demand.

The report revealed that in London, typical CIO salaries are now £120,000 to £175,000 in financial services and £95,000 to £160,000 in commerce and industry. This compares with £80,000 to £150,000 in Manchester and the north west of England and £75,000 to £120,000 in the Midlands.

"Our research shows that IT professionals working in London continue to be among the best paid in the world. Salaries elsewhere in the UK also generally compare favourably with those overseas," said Addicott.