Financial Sector Contractors
According to giant group, financial sector contractors are expecting a bumper Christmas.
They are expecting a rise in both the number of financial sector contracts and the rise in rates that comes with a sector being squeezed.
When there are more contractors than there are contracts available, then, becasuse of the economic Laws of Supply and Demand, the price of that commodity (financial sector contractors) will fall as happened in the last downturn, especially after the banking crash.
Laws of Supply and Demand
When Demand and Supply are in equilibrium, as they had been till recently, the price will stay the same.
However, we have now got to the stage where demand is outstripping supply which is pushing rates northwards.
Finance Contractors are rubbing their hands as the situation is only going to worse, as regards those seeking contractors in the finance sector, and better for them.
There will be a real rise in rates ahead.
IT Contractor rates Rising
Even IT Contractors who work in the finance sector are seeing premium rates.
The average daily rate for an IT Contractor is now £425 a day.
In the finance sector it is already £450 and rising more quickly than in other IT sectors.
Average rates for those in the IT Contractor banking sector are £500 a day and in Investment Banking it is £550 a day.
Decreasing Gap Between Contracts
A survey by giant of their contractors showed that there was great optimism as regards rates amongst their financial sector contractors.
Giant also saw that there was a decreasing average gap between contracts for their finance contractors.
The downturn, and banking crash, was obviously bad for contractors in the financial sector.
However, the amount fofregulatory regimes that have now been put in place to control the finance sector has meant a boom in demand for these contractors with their particular knowledge and expertise.
Demand for Finance Contractors Rising
Said giant’s MD Matthew Brown:-
“Demand has been steadily rising for some time now so it’s not a surprise to see contractors feeling so optimistic about their futures.
Some commentators have criticised the financial sector for failing to learn from its mistakes leading up to the global recession.
“However, the growing regulations that have been, and continue to be, placed on the industry are an attempt to curb reckless behaviour to prevent these errors from happening again and it appears that contractors are benefitting.”
Expertise of Financial Sector Contractors Sought
The knowledge and expertise of the finance sector contractors is going to be highly sought in the coming years. Said Matthew Brown:-
“These professionals are specialists in their field and can lead organisations through periods where they’ll have a particularly challenging landscape to navigate and a significant amount of red tape to traverse.
“Our data has also highlighted that the percentage of contractors who would accept a permanent position if offered has continued to drop, even with the broad-brush approach that the government has taken to contractor legislation in recent times.
“It appears that professionals are realising what can be gained from operating in this way and organisations are also reaping the benefits of taking on these experts.”