Surge in IT contractors working on m-commerce platforms as retailers ramp up online spend

A growing proportion of IT contractors are working in the telecoms sector as retailers ramp up investment in their mobile Internet offerings, according to research carried out by giant group plc, the contractor services provider.

The research shows that the proportion of contractors working in the telecoms sector has jumped by about 43% over the past year. 17.4% of all IT contractors now work in the telecoms sector compared to 12.2% this time last year.

According to giant group, despite high street retailers being among the worst affected by the economic downturn, many are investing heavily in m-commerce platforms to capture the shift in consumer spending from the High Street to the Internet. M-commerce is the growing trend for customers to shop online using smart phones and tablet computers.
  
In December 2011, shoppers spent £7.9 billion online, a 16.5% increase compared to the Christmas 2010 period*. With consumer habits changing, retailers are being driven to upgrade and replace their online platforms to meet the demands of online shoppers.

Matthew Brown, Managing Director, of giant, comments: “Ironically, despite some retailers struggling, retail is one of the few sectors which increased its use of IT skills over the past year. Compared to the banking sector, retailers have never been particularly intense users of IT skills, but that is changing fast as retailers channel investment into m-commerce platforms.”

He adds: “A surprising number of retailers don’t offer e-commerce functionality. With consumers becoming more demanding about how they shop, and legacy systems often a serious bottleneck, investment in IT is key to gaining competitive advantage.”

In another sign of positive improvements in demand for IT skills in some sectors of the economy, the research from giant group also revealed that contractors are spending less time out of work between contracts. 80.4% of IT contractors spend 31 days or less between contracts, compared to 78.4% this time last year.

Despite the increased number of job opportunities in sectors such as retail, however, contractors are still emphasising job security as a priority over higher pay – evidence of lingering caution about the jobs market. When asked to choose between a longer term contract or higher hourly pay, 65.9% of IT contractors would chose a long term contract while just 34% would prefer a higher hourly pay of pay.

Matthew Brown continues: “Demand for IT skills is clearly strengthening in some sectors. Given the uncertain climate, however, it is not surprising that the majority of contractors still have an eye on job security and are favouring longer term contracts over higher hourly pay.”

*figures from IMRG Capgemini e-Retail Sales Index