IT industry shuns permanent employment

13:03 12th August 2008

A growing number of IT professionals are favouring contract work over permanent employment because of the better pay conditions, several IT recruitment firms have claimed.

The European firm Parity and the consultant ReThink Recruitment believe that this trend could hamper many firms' IT and business alignment at a time of economic uncertainty.

Simon Page, Parity resources director of recruitment, explained that large companies are looking for permanent staff but are increasingly employing contractors as "firms have more flexibility in what they can pay" them.

Mr Page has also noticed that this trend exists in public sector companies, which are traditionally recession proof.

ReThink Recruitment's Michael Bennett believes that a downturn in the number of permanent staff is to be expected in the context of financial insecurity.

However, he warned that "because temporary contract staff tend to be less incorporated into a business, an influx of contractors will not aid firms' efforts to align IT and business operations".

Earlier this year, research by Loudhouse claimed that two thirds of the UK's IT staff are currently looking overseas for a better job.

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