Boom in financial services sector driving demand for IT contractors

- Contractors believe financial services will provide most job opportunities for 2007

- Confidence in public sector opportunities is waning

The booming financial services sector will once again dominate demand for IT contractors in 2007, according to the latest research from giant group plc, the contractor services provider. 25% of IT contractors now work within financial services, the highest percentage since the giant group survey began in 2003.

The survey, with over 2,500 respondees, reveals that almost a third (30%) of IT contractors believe that the financial services sector will provide the most career prospects this year, up from 28% the same time last year.

Matthew Brown, Managing Director, giant group, comments: ìThe continuing boom in MandA activity and increased transaction volumes is leading to higher demand for IT contractors within investment banks and hedge funds. Investment in IT systems is focussed on cutting the cost of each transaction, thereby enhancing competitive advantage.î

ìData security also remains a major spending priority in the City, as is compliance, and the introduction of the Markets in Financial Instruments Directive this year will require a significant further outlay on IT systems.î

The survey also confirms that the number of IT contractors employed on public sector IT projects has fallen by 3% since the end of 2005 and that contractorsí confidence in the ability of the public sector to create IT jobs is declining. Just 20% of contractors believe that the public sector will offer the most opportunities in 2007, down by 1% from last year.

Matthew Brown says: ìThere have been a number of high profile glitches with Government IT systems in recent months and spending taxpayersí money on IT is becoming a much more politically sensitive issue. Contractors are also well aware that the e-government programme is now complete, and with most public services available online, the demand for IT professionals has moderated.î

The Government recently announced it has abandoned plans to develop a massive database to run a National Identity Register, following on from its early decision to significantly scale back plans to establish a central NHS database. Ongoing reports of teething problems with Her Majestyís Revenue and Customs e-filing system have also attracted negative publicity.