more than just a recruitment service

Market Insight Issue 3 | July 2010

Scotland’s IT market recovers

with steady pulse

Market Insight | February 2010 | P2

So officially we’re out of the recession. However whilst the

UK’s overall unemployment rate fell during the last 3

months it was reported that the number of those

unemployed in Scotland actually grew by 9,000¹. It’s not all

doom and gloom though as the number of Scottish based

permanent IT jobs advertised actually increased, albeit by a

marginal 0.9%².

Currently leading the charge is the area of finance as a

number of the larger financial institutions such as Morgan

Stanley, Barclay’s Wealth and Tesco Personal Finance

continue to up their requirements for IT staff. Unsurprisingly

candidates who have worked in some form of finance role or

environment are currently in higher demand as a result.

Increased market activity is also forcing companies to

strengthen their delivery capabilities, however with many

reluctant to commit long term in the current climate this has

led to an increased demand for IT contractors. The recent

Bank of Scotland’s Report on Jobs also noted the area of IT

contracts as having the strongest rate of growth at the

moment.

After what could be acknowledged as a fairly positive period

in the recovery the next 6 months are being faced with a

little more caution with reports suggesting as many as

60,000 public sector jobs are likely to be cut in the next few

years³.

1 Scottish jobless total on the rise again - http://bit.ly/bqFZ2k

2 JULY 2010 QUARTERLY UPDATE - http://www.jobadswatch.co.uk/

3 Budget review recommends up to 60,000 public jobs cut - http://bit.ly/dpIj0s

Bankings big guns boost Scotland’s

IT market recovery

£49,750

£39,333 £39,833

£31,000£33,333

£17,500

£32,667

£0

£10,000

£20,000

£30,000

£40,000

£50,000

£60,000

Executive

Management

Software &

Web

Development

IT Projects &

Business

Analysis

Infrastructure

& Support

IT Sales Digital

Market ing

Graduates

Impact on Salaries & Contract Rates

Encouragingly, the average salary for Scotland’s IT staff has continued to remain in the mid 30k range. With the exception of Glasgow each of Scotland’s major cities seen an increase in permanent IT salaries with Aberdeen, which seen the largest increase of all,

now placed as the top paying city. Those working in IT contract work have the most reason to be pleased as the average salary increased quite significantly across the board. Dundee seen the largest jump however once again Aberdeen emerged as having the highest of Scotland’s average salaries.

Figure 1: Top 5 average IT salaries by location

Upon analysis of the top 5 most used terms in Scottish based IT job adverts it appears there is now slightly more emphasis being placed on commercial business ability than technical skills. Unlike previous reports which have shown SQL, C & C# to be amongst the most sought after skills.

It’s clear though that those who work in some form of IT finance will be in particularly high demand with this area seemingly leading the way throughout the recovery.

Scotland’s Top 5 Permanent IT Skills

1. Finance

2. Developer

3. SQL

4. .NET

5. Analyst

Scotland’s Top 5 Contract IT Skills

1. Finance

2. Analyst

3. Banking

4. Developer

5. Business Analyst

In the past 6 months the majority of salaries increased, albeit at a marginal rate.

As was forecasted in this years Scottish Technology Survey the demand for graduates has grown which has led to a minor increase in salaries in this area. Sales staff have also seen an improvement in their basic salaries however successful candidates are seeing a much larger increase in their overall take

home as a result of clients now being more creative with benefit and bonus structures.

Information provided by 9-20 recruitment

Figure 2: Averages salaries per IT job category

Information provided by IT Jobs Watch

Market Insight | February 2010 | P3

Figure 3: Scotland’s top 5 IT skills

Scotland's Average IT salaries per location

Average salary (per annum)

Average contract rate (per day)

Glasgow £36,812 £315

Aberdeen £39,665 £384

Edinburgh £39,137 £310

Scotland Average £36,609 £330

Dundee £30,822 £312

Information provided by IT Jobs Watch

Scotland’s IT Salary & Rate Guide

Software & Web Development Average Salary (excluding bonus) Average Contract (charge per day)

Solutions Architect £55,000 (-) £400 - £550 (-)

Product Manager £45,000 (+ 6.7%) £350 - £400 (+)

Applications Developer £36,000 (-) £275 - £325 (+)

Web Developer £33,000 (-) £300 - £325 (-)

Oracle Database Developer £35,000 (-) £290 - £325 (+)

SQL Database Developer £32,000 (- 8.6%) £250 - £300 (-)

Executive Management Average Salary (excluding bonus) Average Contract (charge per day)

CEO £65,000 (-) £600 - £700 (-)

CIO/CTO £55,000 (-) £500 - £650 (-)

IT Director £44,000 (-) £400 - £450 (-)

IT Manager £35,000 (-) £300 - £350 (-)

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

Infrastructure & Support Average Salary (excluding bonus) Average Contract (charge per day)

Technical Architect £45,000 (-) £250 - £350 (-)

Service Delivery Manager £38,000 (-) £250 - £300 (-)

Server Support Analyst (3rd line) £30,000 (+ 11%) £180 - £325 (+)

Desktop/Network Support (2nd Line) £24,000 ( + 20%) £110 - £150 (-)

Helpdesk Analyst (1st Line Support) £18,000 (+ 12.5%) £80 - £110 (<)

IT Projects & Business Analysis Average Salary (excluding bonus) Average Contract (charge per day)

Programme Manager £48,000 (-) £350 - £400 (-)

Project Manager £45,000 (+ 7.1%) £280 - £320 (+)

ERP & CRM Consultant £40,000 (-) £350 - £400 (-)

Business Analyst £38,000 (+ 5.6%) £280 - £300 (-)

Technical Author £35,000 (-) £200 - £250 (-)

Tester £33,000 (+ 10%) £210 - £270 (+)

IT Sales Average Salary (excluding bonus) Average Contract (charge per day)

Commercial Manager £45,000 (+ 7.1%) £300 - £350 (-)

Channel/Sales Manager £36,000 (-) £250 - £325 (-)

New Business Development £38,000 (+ 8.6%) £250 - £300 (-)

Inside Sales £28,000 (-) £200 - £250 (-)

Lead Generation £25,000 (-) £150 - £200 (-)

Account Executive £28,000 (- 6.7%) £150 - £200 (+)

Information provided by 9-20 recruitment

Digital Marketing Average Salary (excluding bonus) Average Contract (charge per day)

Head of Marketing £38,000 (-) £300 - £350 (-)

E-Marketing Executive £28,000 (-) £175 - £225 (-)

SEO Account Manager £32,000 (-) £200 - £250 (-)

Graduates Average Salary (excluding bonus) Average Contract (charge per day)

Business Analyst £18,000 (+ 12.5%) £100 - £125 (-)

Software Developer £20,000 (+ 5.3%) £75 - £150 (-)

Infrastructure & Support £16,000 (+ 14.3%) £50 - £80 (-)

Sales & Marketing £16,000 (+ 6.7%) £75 - £100 (-)

Market Insight | February 2010 | P4

0

200

400

600

800

1000

1200

1400

1600

1800

Execut ives Sof tware &

Web

Development

IT Project

Management

Business

Analysis

Inf rast ruct ure

& Support

IT Sales &

Digit al

Market ing

Graduates

Passively Looking

Act ively Looking

Immediately Available

0

100

200

300

400

500

600

700

800

900

1000

Execut ives Sof tware & Web

Development

IT Project

Management

Business

Analysis

Inf rast ruct ure &

Support

IT Sales &

Digit al

Market ing

Graduates

Current ly in Contract

Act ively Looking

Immediately Available

554

395

421

1997

1703

1718

0 500 1000 1500 2000 2500

Quar ter 2 / 2009

Quar ter 1 / 2010

Quar ter 2 / 2010

Permanent

Contract

Impact on Supply & Demand

With the overall rate of availability increasing in the

past 6 months IT Sales & Digital Marketing has seen

the largest increase (11.1%), however the area of

infrastructure and support continues to have the

most available staff.

Graduates and Executives have remained at a very

similar rate however with the increase in demand

for business analysis candidates supply has dropped

slightly in this area.

In quarter 2 there was a gradual increase in jobs

posted as the number of permanent vacancies

increased by 0.9% and contract roles by 6.6%.

Looking at the year on year figures however it’s

apparent there is still quite some way to go as the

number of contract vacancies posted is still 24.0%

down on the same time last year.

Similar to 6 months ago the areas of IT Project

Management and Infrastructure & Support continue

to have the most available contract candidates with

Graduates the least.

Market Insight | February 2010 | P5

Figure 6: Permanent IT staff availability

Information provided by 9-20 recruitment

Information provided by 9-20 recruitment

Figure 7: Contract IT staff availability

Information provided by Job Ads Watch

Figure 5: Amount of Scottish based IT jobs advertised

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 2010 - Winners of Most Innovative Company UK Onrec Awards 2010 - Finalists for Best Use of Online Recruitment Herald Digital Business Awards 2009 - Winners of Recruiter Award UK Recruiter Awards 2009 - Finalists for the Best IT Recruitment Firm

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.

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