Surge in demand for Web skills as MySpace and YouTube generation revolutionise Internet

- Web developers cash in on explosion in e-commerce
- Pay jumps 27% in a year

A surge in demand for web skills on the back of second generation websites, such as MySpace and YouTube, has propelled pay for top web developers up 27% over the last year, reveals research by SkillsMarket/Association of Technology Staffing Companies (ATSCo).[1]

According to the Association of Technology Staffing Companies (ATSCo), web developers, who defined the first dot com era, but saw demand for their skills decline after the late 90s downturn, are now among the most sought-after IT professionals in the UK.

Median annual salaries for IT professionals skilled in key web technologies (Java, Enterprise JavaBeans, Microsoft .Net and BEA Weblogic Server) have risen by an average of 27% over the past year (see appendix below).

Ann Swain, Chief Executive, ATSCo, comments: ìWeb developers are back among the IT elite. The increase in online multimedia applications, such as podcasts, and the growth of advertising on next generation websites, is generating strong demand for their skills.î

ìWe are now facing a skills crisis similar to the late 90s. Back then it seemed every train carriage had at least one 20 year-old reading a Java manual, but the excitement is more muted now, and graduates are not flocking to learn web technologies in the numbers they once did.î

She adds: ìPay for web developers will continue to rise as long as the twin pressures of demand for Internet technologies and undersupply of skills remain in place.î

The resurgence of interest in the Internet - dubbed Web 2.0 ñ has spurred organisations to upgrade their websites by introducing new technologies. The BBC recently revealed plans to rebuild its website around user-generated content, including blogs and home videos.

ìAs broadband Internet connections become more widespread, running programs from browsers become a possibility. A lot of websites are being overhauled to offer much more interactive content, which is stoking demand for web skills,î says Ann Swain.

Alex Charles, Founder and Product Director of SkillsMarket, added: ìItís not just consumer websites that are fuelling the demand for these skills. Over the last year we have also seen a dramatic transfer in b2b applications to the web. This has been the result of new technologies such as AJAX, which has enabled functionally rich applications to be moved online. Typical examples include contact management and email systems.î

Dotcom companies looking to upgrade their services are now locked in a bidding war for key web skills.

ìCompanies are being forced to offer large incentives to get people onboard because with so few skilled IT graduates entering the marketplace, poaching from rivals is becoming a necessity. But employees in these companies have seen their share options become hugely valuable and will only move for big money increases,î says Ann Swain.

The number of fulltime undergraduates studying computer science in the UK has fallen 16% since 02/03, from 85,535 to 73,515 in 04/05.[2]

Retailers upgrading e-commerce operations

ATSCo says that retailers are upgrading their e-commerce capabilities ñ filtering through to higher pay for web developers - as potential returns on investment improve.

UK online Christmas sales are predicted to increase by 40% this year to 7 billion, up from 5 billion in 2005. Retailers such as Asda and Debenhams are currently expanding their e-commerce services.[3]

[1] All references to the research to be attributed to SkillsMarket/ATSCo
[2] Higher Education Statistics Agency
[3] Interactive Media and Retail Group