Market Insight. Pieces falling into place for Scotland s IT market. Issue 4 February more than just a recruitment service

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1 Market Insight Issue 4 February 2011 Pieces falling into place for Scotland s IT market more than just a recruitment service

2 Demand for permanent staff grows at the quickest pace in 7 months It seems the atrocious weather seen in December did little to dampen the spirit of Scotland's IT market. With quarter 4 notorious for being the quietest of the four the market continued to improve as the total number of permanent Scottish IT vacancies advertised grew by 2.2%. As indicated by the Bank of Scotland Report on Jobs the market as a whole received a massive lift in December in particular as the demand for permanent staff grew at the quickest pace in 7 months². Contract staff were also seen to be much more highly sought after with the demand increasing at the fastest rate since The looming public sector cuts do continue to hang a dark cloud over Scotland s economy however there s also plenty of reason to be cheerful such as the news of the recent announcement that online retailer Amazon are to create 950 jobs in the country. Money is also being spent with Scottish Enterprise grants of 12.3 million helping protect more than 1300 jobs in the last quarter³. Some reference does have to be made to the financial sector which has continued to prosper over the last period with a wide range of IT hires seen right across the board. In both areas of permanent and contract IT a financial background has continued to be the most desired by employers as a result. 1 JobAdsWatch Scottish job survey shows market continues to improve Grants secured more than 1300 Scottish jobs at end of last year - Market Insight February 2011 P2

3 Impact on Salaries & Contract Rates Figure 1: Top 5 average IT salaries by location Scotland s average IT salary seen a slight decrease of 4.8% in the past 6 months however it continues to remain well above the 30k mark. Scotland's Average IT salaries per location Average salary (per annum) Average contract rate (per day) Apart from Glasgow which increased by 6% each of the major cities seen a modest reduction in permanent IT salaries with Aberdeen the hardest hit. Dundee remains as the lowest paying city. The average contract rate also reduced slightly, this time by 5.5%, however both Edinburgh and Glasgow seen an increase in rates. Glasgow 38, Aberdeen 34, Dundee 27, Edinburgh 39, Scotland Average 34, Information provided by IT Jobs Watch Figure 2: Averages salaries per IT job category 60,000 50,000 40,000 30,000 20,000 10, ,250 Executive M anagement 41,250 39,833 Software & Web Development IT Projects & Business Analysis 31,600 Infrastructure & Support 34,833 33,333 IT Sales Digital M arketing 18,125 Graduates The majority of salaries increased with the remainder staying the same. Most notable was the fact that no salary rates dropped in the last half of the year. The largest increase was seen in the category of Executive Management (13.1%) which as expected is the highest paying of the categories overall. Software & Web Development remained as the second highest with a 4.9% salary increase. Figure 3: Scotland s top 5 IT skills A background in finance does continue to be the most sought after upon analysis of the top five most used terms in Scottish based IT adverts, however there s been very little change in the last two quarters. Notably, SQL Server does make an appearance and.net rises one place to number three in permanent roles. Contract skills remained the same with the exception of Business Analyst and Developer trading places. Scotland s Top 5 Permanent IT Skills 1. Finance 2. Developer 3..Net 4. Analyst 5. SQL Server Scotland s Top 5 Contract IT Skills 1. Finance 2. Analyst 3. Banking 4. Business Analyst 5. Developer Information provided by IT Jobs Watch Market Insight February 2011 P3

4 Scotland s IT Salary & Rate Guide Shown below is the current market rate for those positions within the full spectrum of Information Technology from Graduate to Executive level. Figure 4: Average Scottish IT salaries Executive Management Average Salary (excluding bonus) Average Contract (charge per day) CEO 70,000 (+7.7%) 800 (+) CIO/CTO 65,000 (+18.2%) (+) IT Director 44,000 (+13.6%) (-) IT Manager 35,000 (+14.3%) (-) Software & Web Development Average Salary (excluding bonus) Average Contract (charge per day) Solutions Architect 60,000 (+ 9.1%) (+) Product Manager 50,000 (+ 11.1%) (+) Applications Developer 36,000 (-) (+) Web Developer 33,000 (-) (-) Oracle Database Developer 35,000 (-) (+) SQL Database Developer 33,500 (+ 4.7%) (-) IT Projects & Business Analysis Average Salary (excluding bonus) Average Contract (charge per day) Programme Manager 48,000 (-) (-) Project Manager 45,000 (-) (+) ERP & CRM Consultant 40,000 (-) (-) Business Analyst 38,000 (-) (+) Technical Author 35,000 (-) (-) Tester 33,000 (-) (-) Infrastructure & Support Average Salary (excluding bonus) Average Contract (charge per day) Technical Architect 45,000 (-) (+) Service Delivery Manager 38,000 (-) (-) Server Support Analyst (3rd line) 32,000 (+ 6.7%) (+) Desktop/Network Support (2nd Line) 25,000 ( + 4%) (-) Helpdesk Analyst (1st Line Support) 18,000 (-) (-) IT Sales Average Salary (excluding bonus) Average Contract (charge per day) Commercial Manager 50,000 (+ 11.1%) (-) Channel/Sales Manager 40,000 (+ 11.1%) (-) New Business Development 38,000 (-) (-) Inside Sales 28,000 (-) (-) Lead Generation 25,000 (-) (-) Account Executive 28,000 (-) (+) Digital Marketing Average Salary (excluding bonus) Average Contract (charge per day) Head of Marketing 40,000 (+ 5.3%) (-) E-Marketing Executive 28,000 (-) (-) SEO Account Manager 32,000 (-) (-) Graduates Average Salary (excluding bonus) Average Contract (charge per day) Business Analyst 18,000 (+ 12.5%) (-) Software Developer 22,000 (+ 5.3%) (+) Infrastructure & Support 16,000 (+ 14.3%) (-) Sales & Marketing 16,500 (+ 3.1%) (-) Market Insight February 2011 P4

5 Impact on Supply & Demand Figure 5: Amount of Scottish based IT jobs advertised Contract Permanent Quarter 4 seen yet another, albeit slight rise in the number of IT vacancies with permanent vacancies increasing by 2.2% and contract roles by 6.4%. Quar ter 4 / The year on year figures look far more promising, permanent roles in particular, with an increase of 10.6% seen in those advertised in the last 12 months. Quar ter 4 / Information provided by Job Ads Watch Figure 6: Permanent IT staff availability Passively Looking Actively Looking Immediately Available Whilst there s been a marked improvement in the demand for IT staff there s also been an increase in the supply of candidates actively or passively looking for work. Particularly the area of Software and Web Development which seen the number of available candidates increase by 18% Execut ives Sof t ware & IT Project Business Inf rast ructure IT Sales & Graduat es Web Management Analysis & Support Digital Development Market ing Figure 7: Contract IT staff availability 1200 Currently in Contract Actively Looking Immediately Available 1000 The category of Software & Web Development also seen the largest increase of available contract candidates as the total number grew by 12% in the last two quarters. However the category of Business Analysis currently has the most available Execut ives Sof t ware & Web IT Project Business Inf rastruct ure & IT Sales & Graduates Development Management Analysis Support Digit al Marketing Market Insight February 2011 P5

6 9-20 recruitment more than just a recruitment service About 9-20 recruitment 9-20 recruitment are market leaders in providing a highly comprehensive and scalable IT recruitment infrastructure across all business sectors, skill-sets and levels of seniority. With an impressive client list 9-20 have supported leading technology companies achieve their resource objectives through full Recruitment Process Outsourcing (RPO), Individual Permanent Recruitment and the optimising of IT Contractors. Our success so far has been acknowledged through the following: Scottish Recruitment Awards Winners of Most Innovative Company UK Onrec Awards Finalists for Best Use of Online Recruitment Herald Digital Business Awards Winners of Recruiter Award UK Recruiter Awards Finalists for the Best IT Recruitment Firm Copyright: This report and all data contained within is copyright of 9-20 recruitment. The information within this report may be reproduced if the source is clearly identified. Disclaimer: Contents within the Market Insight report are not a substitute for specific advice and should not be relied upon as such. Accordingly, whilst every care has been taken in the preparation of this publication, no representation or warranty is made or given in respect of its contents and no responsibility accepted for the consequences of any reliance placed on it by any person. 4 Lynedoch Place, Glasgow, G3 6AB Tel: Fax: Web:

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