Guide to the latest IT Contractor Rates

The fourth annual survey of IT directors, by ReThink Recruitment, has identified staff retention as the leading concern for the year ahead.

Following the recession crunch, the demand for IT staff has steadily risen, as delayed projects have been given the go ahead. 41% of IT directors increased their headcount in 2010.

The recruitment firm says that the strengthening economy will put pressure on IT pay rates - both permanent and contract. Over half of respondents to the survey had already increased permanent IT salaries during the course of the last 12 months.

Staff turnover is also a concern for many IT directors, hitting 11% in 2009 - up fro 9% in the previous year. As one would expect, turnover will increase in a more buoyant economic environment.

High contract rates for niche IT skills

Michael Bennett, Director of ReThink Recruitment, said that demand is far outstripping demand in some niche IT areas:

"We have recently been placing candidates on Solvency II projects - a new regulatory requirement for insurers - on £900 a day, a pay rise of up to 50% in some cases."

"We are anticipating demand for candidates with these - as well as other niche skills including experience in multi-channel and e-commerce IT projects - to continue to accelerate throughout 2011."