IT contractors flocking to banking sector

Banks offer 25 per cent higher salaries than agencies

A significant number of developers and other IT professionals have moved from digital agencies to the banking sector in the past six months, according to the fourth quarterly JM Digital Index.

The Index was compiled by JM Digital, the retail arm of IT recruitment firm JM Group.

It states that an industry-wide increase in use of mobile phone applications and social media sites has meant that there is a big increase in demand for digital IT staff across all industries.

In addition, there are some trends that are specific to the financial sector, meaning demand there is particularly high.

These include increased use of next-generation trading platforms that transmit information in a digital form, and the focus on converting customers to online and mobile banking.

According to Dave Pye, CEO of the JM Group, this demand from banks is mopping up a disproportionate amount of digital talent as other organisations can't compete with salaries on offer within the financial sector.

"The demand for digital projects has never been so great but the problem companies now face is the shortage of digital skills available.

"Over the last six months we've seen a crossover of digital contractors moving from agencies into the financial sector. This has been a real issue for companies, which are unable to compete with the rates these banks are offering," said Pye.

The JM Digital report shows that the IT roles most in demand are iOS, Android, BlackBerry, Flex and Silverlight developers, user experience designers and digital project managers.

JM said that banks have lured many contractors by offering better salaries, better working hours and the challenge of adapting to the complexity of banking systems.