IT Market Monitor. Salary and Vacancy Trends: Q Designed to bring you current trends in the Technology staffing industry
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1 IT ket Monitor Q2 215 Designed to bring you current trends in the Technology staffing industry General ket Overview We provide you with commentary on salary and vacancy trends in Q Salary and Vacancy Trends: Learn more Senior Appointments Information Security & Risk Q2 215 Hot Jobs Find out more about permanent and contract jobs in demand in Q Learn more Infrastructure Testing & Quality Assurance UK Regional Trends Development Business Intelligence & Data Management We examine where we have seen demand increase over Q2 215 across regions within the IT market. Learn more Business Applications Financial Risk & Compliance
2 Welcome to the Q2 ket Monitor 215 Your quarterly publication designed to deliver the latest trends in the Technology staffing industry. Our insight focuses on job titles and regional statistics allowing us to identify which skills are in most demand, and in which areas. In this report, you ll find information on salary and vacancy trends across contract and permanent recruitment within each of our core specialisms.
3 Overview and General ket Richard Protherough Managing Director Spring Technology While hiring managers hit the pause button during the last quarter, confidence appears to be building year on year. The slowdown in growth we predicted in our Q1 ket Monitor came to fruition following s General Election, with companies delaying strategic hiring decisions until changes to government policy are outlined more fully. Despite a slower than anticipated upturn in permanent hires, momentum built during the last few weeks of e, marking out the deceleration as a temporary blip rather than a growing downward trend. Q2 215 market overview The fall in vacancies between Q1 and Q2 215 is not unusual given the mass movement of workers at the end of any given year. Positive annual comparisons to Q2 214 are better indicators of market health. Growth continues to be demonstrated most strongly in the permanent market where we are seeing 17% more roles than a year ago. vacancies are also currently higher than a year ago, but only up 3% in comparison. 17% market increase in comparison to Q % market increase in comparison to Q2 214 Continues >
4 Continued: Overview and General ket *Number of IT vacancies in Q2 215 vacancies 144,167 vacancies 4,244 Q % Y % Q % Y % Experts agree that the future looks bright for the UK IT sector Tech Monitor UK, from KPMG, reports that the UK tech industry has, since early 21, experienced a rate of job creation that is three times larger than the overall UK economy. Hiring intentions are at the highest level since the beginning of the survey in 23. In fact, while the UK economy has increased employment by 7% over the last 5 years, it is estimated that technology companies now employ 22% more candidates. Tudor Aw, Head of Technology at KPMG said: "Encouragingly, our data suggests that not only have tech companies recovered strongly since the financial crisis, but they have also reinvested these profits into job hires and capital expenditure." It s a trend we ve experienced in our own Business Intelligence practice in particular. Skills gap remains a serious issue While some companies are taking on fresh talent, there s a continuation of some niche skill candidate shortages, and companies are working harder to retain existing employees. Worryingly, increasing demand from the tech industry is likely to widen the UK s existing skills gap. A survey of 1,6 employers by the Tech Partnership during the first quarter of 215 suggested that more than half of all UK technology firms (59%) have skills gaps in their existing workforce, with the figure rising to 72% in large firms. Almost one in three of all vacancies in the tech industry were reported as "hard-to-fill" and respectively took almost three months (86 days) to find a suitable candidate. This compares with an overall UK average of 27 days to find a candidate during ruary 215. More and more, companies are relying on European candidates to plug the holes left by their scarce UK-counterparts.* Women in Technology Spring Technology s recent Women in Technology campaign identified that women accounted for just 16.4% of the UK s IT & Telecoms professionals (from a total workforce of 1.2million), highlighting an urgent need to bridge the gender gap in our industry. We are currently encouraging schools, government and employers to expand the UK s IT talent pool through fuller digital and technical literacy and a more accessible, more attractive curriculum. This has genuine potential to broaden the pool of available females to work in the profession, but we all have a part to play in ensuring the strength and diversity of the UK s future workforce. As post-election uncertainty fades, we need every source of available talent to defy the dip in last quarter s numbers and drive forward the UK IT market s momentous growth. I hope you find this quarter s ket Monitor useful, and should you wish to discuss your recruitment strategy, please don t hesitate to make contact with your local regional Spring Technology office. Find your local Spring Technology office here
5 Salary and Vacancy Trends
6 Senior Appointments This quarter generally sees a natural dip in recruitment as New Year hiring gives way to the summer holiday slow down - and this year is no exception. Fewer senior appointments vacancies were advertised in Q2 215 than in last quarter and, while both permanent and contract markets are showing more vacancies than a year ago, almost half of areas have experienced a fall. Businesses appear to letting the dust settle following s General Election, playing it safe with the strategic roles potentially most affected by changes in government policy. This uncertainty could also account for an overall slide in director-level roles. Number of vacancies Vacancy trends IT Director 353 Q % Y -5.11% Project Management 13 Q % Y -7.14% IT Manager 5,881 Q % Y +2.59% Business Analyst 1,384 Q % Y % vacancies IT Director IT Manager Project Management Business Analyst Whilst confidence appears to have returned within niche skill sets, senior appointments may need more time to feel the boost. 2,22 Q -2.6% Y +1.49% 1,9 Q -9.8% Y -3.63% Q -9.47% Y +1.1% Q % Y % 2 vacancies IT Director IT Manager Project Management Business Analyst Q - Quarterly % Change Y - Year % Change
7 Infrastructure Technical Support roles which account for twice as many vacancies as the other two markets combined showed a disappointing drop, but maintained a positive change year on year. For example, compared to e 214, only contract Technical Support roles were in lower demand, while Network Engineering and Technical Architecture held strong. While all market areas saw fewer vacancies in Q2 215 than Q1 215, contract positions are bucking the trend and faring better compared to permanent roles. Elsewhere, contract vacancies have taken a slightly bigger hit. Number of vacancies Vacancy trends Technical Support 16,867 Q % Y +6.93% Technical Architect 4,283 Q % Y -6.38% Network Engineer 4,23 Q % Y +3.41% 1,366 Q % Y % vacancies Technical Support Network Engineer Technical Architect 4,8 2,358 Q % Y % Q -9.21% Y % 6 vacancies Technical Support Network Engineer Technical Architect Q - Quarterly % Change Y - Year % Change Skills in demand Windows 8 VMWare Hyper-V and SCCM
8 Development Made up of two large market sectors, Development always provides interesting statistics. For Q1, the practice has followed the trend of a drop off in demand during Q2, paired with a rosier outlook compared to last year. With the Development practice making up such a large part of the IT sector, uncertainty surrounding the General Election hit this market hardest. Software Engineers regularly account for around 4% of IT vacancies and poor quarterly performance sends ripples throughout the entire market. The knock-on particularly affected contract roles, which suffered a more dramatic dip. Number of vacancies Vacancy trends Software Engineer 57,793 13,442 11,669 1,791 Q -7.4% Y +3.41% Q % Y % Q - Quarterly % Change Y - Year % Change Web Development Q -6.86% Y % Q -5.59% Y +2.58% vacancies Software Engineer Web Development Annual comparisons are more encouraging with significant rises in every area except contract web development. Software Engineers saw a sizeable boost in demand compared to a year ago with nearly a third more permanent roles on offer than at the close of Q Despite a small quarterly drop in vacancies in the first half of 215, development skills (both Microsoft and Open Source) remain hot property across the board. The huge 3% uplift in demand from 214 means that most, if not all, development skills are becoming increasingly tougher to recruit for. Skills in demand Angular JS Node JS C#, MVC vacancies Software Engineer Web Development The Development practice is experiencing a growing shift within the front-end development area, with increasing numbers of clients now seeking to hire Angular JS or Node JS skills rather than traditional Javascript. 5
9 Business Applications Overall, Q2 215 saw fewer Business Applications vacancies advertised, but it was an unpredictable quarter for the practice, with a surge in some technologies highlighting a drop-off in others Requirements declined for MS Dynamic skills, for example, but certain SAP modules, such as SAP ERP, grew in demand. Year on year, around 12% fewer roles are being advertised and while permanent and contract Application Analyst roles have increased, growth is far below the market average. Number of vacancies Vacancy trends ERP 2,71 1,766 2, Q % Y % Q % Y % Q - Quarterly % Change Y - Year % Change Application Analyst Q % Y +3.58% Q % Y +9.66% vacancies ERP Application Analyst Skills in demand 1 vacancies MS Dynamics PeopleSoft SAP ERP Application Analyst
10 Information Security & Risk This practice perfectly demonstrates the difference between demand for permanent and contract roles in the current UK economy. While both markets struggled during the most recent quarter and saw fewer roles advertised, contract roles have risen by only 3.85% in the last year. Meanwhile, there are 5% more permanent roles on the market than Q Number of vacancies Vacancy trends IT Security 3, Q % Y % Q -13.2% Y +3.85% vacancies IT Security Q - Quarterly % Change Y - Year % Change 1 Skills in demand Information Security Manager Network Security Engineer Cyber Security roles 12 vacancies IT Security
11 Testing & Quality Assurance Even in the face of a particularly tough quarter, when the permanent market lost nearly a quarter of its jobs, performance still compares favorably to this time last year. In contrast, the contract market, which experienced a much more modest dip, is struggling to match last year s numbers. Meanwhile, clients remain on the hunt for candidates with Open Source testing tool skills. Open Source provides a cheaper alternative to the old HP/Microsoft testing tools, which incur large licensing fees that can be restrictive for many small to medium-sized businesses. Testers that have used Open Source testing tools in addition to the standard manual testing duties are particularly attractive to cost-conscious clients. Number of vacancies Vacancy trends Software Testing 3,762 1,415 Q % Y +13.1% Skills in demand Open Source Automation and Performance testing tools Q -9.91% Y -3.48% Q - Quarterly % Change Y - Year % Change Selenium Webdriver, Cucumber Ruby, J-Meter vacancies Software Testing vacancies Software Testing
12 Business Intelligence & Data Management Although vacancies fell during the quarter, the drop remained below the market average and is likely simply form part of the recruitment year s natural ebb and flow. There was healthy year on year growth within a number of areas. Database Developers were up by just over 2% and permanent Business Intelligence roles made a 3% leap. Within the two areas that actually saw fewer vacancies, the negligible drop was less than 2%. Number of vacancies Vacancy trends Database Developer 3,187 Q % Y -.38% 1,847 Q % Y % Database Administration 4,536 Q -5.26% Y +16.7% 1,771 Q -8.35% Y -1.34% vacancies Database Developer Database Administration Business Intelligence The overall Business Intelligence practice has enjoyed encouraging growth this year. Employer investment has driven candidate progression on all rungs of the career ladder from an increase in trainee roles to experienced hires being brought in to strengthen existing teams. Business Intelligence 2,797 Q -15.4% Y % 1,33 Q -1.37% Y +4.3% vacancies Database Developer Database Administration Business Intelligence Q - Quarterly % Change Y - Year % Change 25 Skills in demand 2 15 SQL BI (SSIS, SSAS, SSRS) QlikView Cognos 1 5
13 Financial Risk & Compliance Financial Risk & Compliance delivered the most interesting results during the second quarter, side-stepping every market trend and setting some of its own. Compliance/Risk dwarfs the other markets, yet barely moved the dial during Q2, with a minute.1% change in the number of advertised roles. Over the last 12 months, however, both permanent and contract markets brought in strong 15% growth. roles particularly gathered pace in the past quarter, with Actuary roles increasing by more than 1% and more than 75% more roles being advertised compared to this time last year. Number of vacancies Vacancy trends Compliance/Risk 4,41 Q +.1% Y % Actuary 889 Q.% Y % Insolvency 15 Q % Y % 7 Q -43.6% Y -2.45% vacancies Compliance/Risk Insolvency Actuary The momentum continued in the Insolvency market, where permanent roles continued to outstrip contract. While permanent positions lost ground by only 13%, contract roles fell by almost half in Q2. Similarly, contract roles were up 2% compared to a year ago, but permanent roles have grown by a vigorous 65%. 171 Q +1.78% Y % 53 Q % Y +3.92% Q - Quarterly % Change Y - Year % Change vacancies Compliance/Risk Insolvency Actuary Driven by huge client demand, one of the most notable changes from a permanent perspective is the massive 74.49% and 64.89% annual increases within the Actuary and Insolvency markets respectively. In comparison, contract Actuary roles rose by only 3.92% annually, demonstrating that clients are on the hunt for committed, career-minded candidates. Skills in demand Actuary Compliance/Risk Insolvency
14 Hot Jobs and
15 Hot Jobs Job title Average annual salary Monthly change Yearly change IT Director 81, % -4.64% Business Intelligence Consultant 62, % +7.78% Software Development Manager 59, % -2.88% Business Intelligence Manager 56, % -2.5% IT Security Manager 55, % -2.11% C++ Developer 53, % +1.64% PMO Manager 51, % -7.66% IT Security Consultant 49, % +1.1% Java Developer 49, % +4.7% IT Infrastructure Manager 49, % Technical Infrastructure Manager 47, % -7.8% IT Business Analyst 46, % +2.36% IT Project Manager 45, % -6.% IT Manager 43, % -1.6% IT Security Analyst 42, % +5.4% Network Analyst 4, % +4.89%.NET Developer 39, % +.35% PHP Developer 37, % +3.17% Web Developer 34, % +3.8% Systems Test Analyst 34, % -6.64% IT Test Analyst 3, % -44.4% Systems Support Analyst 27, % % Field Support Engineer 27, % -.64% First Line Support 24, % %
16 Hot Jobs Job title Average daily rate Monthly change Yearly change IT Director 85. N/A % C++ Developer % +27.1% IT Security Manager N/A N/A Java Developer % +.7% Business Intelligence Manager % -4.33% IT Security Consultant % % Business Intelligence Consultant % -1.% PMO Manager % -6.28% IT Business Analyst % -3.4% IT Project Manager % +3.46% IT Security Analyst % -1.3% Application Development Manager % % Systems Support Analyst % +7.5%.NET Developer % % Systems Test Analyst % -.91% Network Analyst % +2.99% Web Developer % % PHP Developer % +3.71% First Line Support % +2.53% Software Development Manager % -7.3% Field Support Engineer % %
17 UK Regional Trends Biggest Quarterly Change and Hot Spot
18 UK Regional Trends Biggest quarterly change and hot spot by region In this section, we focus on the change in demand for various regions within Great Britain, examining which segments of the IT market have seen the most dramatic increase in demand over the last quarter. We also define which regions are skill-set Hot Spots areas where a particular type of job is in high demand. Scotland: 2.39% YoY Biggest Change: IT Security, Database Development, Network Engineering Hot Spot: Software Testing North West: 19.% YoY Biggest Change: Business Intelligence, Compliance, Actuarial Hot Spot: Web Development, Software Testing North East: 32.64% YoY Biggest Change: Database Development, Business Analysis, Actuarial Hot Spot: Software Engineering, Technical Support, Database Yorkshire and the Humber: 3.22% YoY Biggest Change: Compliance, Director roles, Business Intelligence Hot Spot: Web Development Wales: 31.26% YoY East Midlands: 27.87% YoY Biggest Change: Insolvency, Technical Architecture, Business Analysis Hot Spot: Technical Support Biggest Change: Network Engineering, Compliance, Web Development Hot Spot: Web Development, Technical Support South West: 13.95% YoY East of England: 19.4% YoY Biggest Change: Database Development, Technical Support Hot Spot: Technical support, Software Engineering Biggest Change: Database Developer, Compliance, Actuarial Hot Spot: Software Engineering, Technical Support West Midlands: 48.33% YoY London: 4.68% YoY South East: 5.89% YoY Biggest Change: Web Development, Project Management, Compliance Hot Spot: Web Development Biggest Change: Director roles, Compliance, Web Development Hot Spot: Compliance, Technical Architecture, Software Engineering Biggest Change: Business Intelligence, Application Analysis, Business Analysis Hot Spot: Technical Support
19 in LinkedIn Contact Us Spring Technology 215. All right reserved. The information contained in this publication is intended for general purposes or guidance only. It does not purport to constitute professional advice. Spring Technology accepts no liability for the accuracy of the contents or any opinions expressed herein.
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