Market Monitor Q1 report

Salary and Vacancy Trends:

Business Intelligence & Data ManagementDevelopment

Information Security & Risk

Business ApplicationsFinancial Risk & Compliance

Testing & Quality Assurance

Infrastructure

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General Market OverviewWe provide you with commentary on salary and vacancy trends in Q1 2016.

UK Regional TrendsWe examine where we have seen demand increase over Q1 2016 across regions within the IT market.

Q1 2016 Hot JobsFind out more about permanent and contract jobs in demand in Q1 2016.

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Senior Appointments

IT Market MonitorQ1 2016 Designed to bring you current trends in the Technology staffing industry

£

Welcome to the Q1 Market Monitor 2016

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.

Q1

The first quarter of the year is usually characterised by good news and general cheer in the recruitment industry, but these feelings were a little muted in Q1 of 2016. In many ways this is attributable to issues beyond the control of any one industry including: weak economic activity, continued European slow down, global insecurity and refugee crisis, Brexit Referendum in UK, uncertainty with Russia and Chinese reforms. The result is that businesses are more cautious and less likely to invest in talent.

While demand across the permanent and contract markets increased against the final quarter of 2015, the number of advertised vacancies in March 2016 was over 10% lower than the same period last year. Although a dip is usual after the first quarter of the year, we would have expected a much larger spike in January. The economic uncertainty in the EU and the closer the UK gets to the referendum, the more demand drops.

Richard Protherough

Managing Director Spring Technology

Overview and General Market

The permanent and contract market experienced a slight lull compared to last year, but the decline was negligible.

Q1 2016 market overview

Continues >

Number of IT Permanent vacancies Q1 2016

Number of IT Contract vacancies Q1 2016

125,371

35,433

Q+8.79%

Q +10.66%

Y -10.11%

Y -12.91%

I hope you find this quarter’s Market 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.

Continued: Overview and General Market

Find your local office

Vacancies in the UK Tech Sector

The upside to this situation is the likelihood that employers in the tech industry will invest in talent once an outcome is known; however, either outcome will bring a certain degree of uncertainty, so recovery may be slow.

Despite this uncertainty, salaries continue to rise by more than the UK average across both the permanent and contract markets – a sign that skills gaps are still prevalent.

So what effect would a Brexit have on the free movement of labour within the EU? Tech City UK’s 2016 Tech Nation report believes migrant workers play a critical role in filling tech jobs, and fuelling the growth of tech start ups. In fact, data from salary benchmarking website Emolument suggests that workers born outside of the UK make up 18% more of the workforce than British nationals.

“Many European graduates see the UK as an ideal location to kick off their careers: flexible career paths, a vibrant technological and entrepreneurial sector as well as fiscal incentives,” said Alice Leguay, Co-founder and COO at Emolument.

“Equally, UK employers are keen to bring in highly skilled graduates as they struggle to find appropriately qualified staff in the UK due to a decline in science and maths education over the last 10 years,” she added.

According to the 2015 CIO 100 report, more than half of organisations were actively seeking to recruit technology talent from the EU to support their business and tackle the IT skills shortage in the UK, while two thirds of technology departments employed skilled EU workers.

“Many European Graduates see the UK as an ideal location to kick off their careers: flexible career paths, a vibrant technological and entrepreneurial sector as well as fiscal incentives”

Alice Leguay Co-founder and COO at Emoulment

http://www.spring-technology.co.uk/en-GB/Pages/contact-us.aspx

Salary and Vacancy Trends

320

1,744

5,83427

861

1,664

Q+13.58%Y+3.56%

Q+14.41%Y -11.20%

Q -8.70%Y+3.87%

Q+88.33%Y+237.50%

Q+17.69%Y+0.00%

Q+46.41%Y+25.30%

Senior Appointments

Demand for senior professionals is often higher during the first quarter of the year, as businesses make strategic hires − with new budgets approved and new plans in mind. This increase was more pronounced in the contract market than usual: an indicator of the uncertainty surrounding Britain’s place in the EU.

The permanent market also displayed some unusual behaviour: firstly, a fall in manager vacancies. This follows the trend of senior roles being filled with interims, as businesses act cautiously on the run-up to the Referendum. This was however contradicted by a 40% rise in business analyst vacancies.

In a deviation from the wider market, there are slightly more senior roles on the market than there were a year ago. Could the rise in strategic hiring point to brighter times on the horizon?

Salaries continue to grow at a rate of more than 2%, with Director salaries considerably higher than the same period last year. Q - Quarterly % Change | Y - Year % Change

0

1000

2000

3000

4000

5000

6000

7000

8000

Business AnalystProject ManagementIT ManagerIT Director

MarFebJanDecNovOctSepAugJulJunMayAprMar

2015 2016

0

500

1000

1500

2000

Business AnalystProject ManagementIT ManagerIT Director


2015 2016

Contract vacancies

Permanent vacancies

Number of vacancies Vacancy trends Mar 2015 - Mar 2016

IT Director IT Manager

Business AnalystProject Management

Permanent

Permanent

PermanentContract

Contract

Contract

734 371

Q+39.54%Y+23.78%

Q+16.48%Y -9.73%

Permanent Contract

Skills in demand

Digital Transformation Cloud Computing IT Architecture

01 02 03

While the first quarter of 2016 saw infrastructure vacancies rise against the final quarter of 2015, the increase was smaller than might have been expected. This was largely a reflection of the wider market – as was the reduction in vacancies across all areas when compared to the same period last year. In two cases this fall was significant, at more than 20%.

Salaries have also been disappointing in this area, with advertised salaries for network engineers slightly lower than they were a year ago. This is most likely linked to a reduction in market demand, with 20% fewer vacancies across the permanent and contract markets.

Infrastructure

17,913

4,285

3,5163,563

2,501

1,279

Q+14.40%Y -2.59%

Q+9.06%Y -10.99%

Q+6.25%Y -20.49%

Q+0.27%Y -27.30%

Q+23.47%Y -5.87%

Q+5.06%Y -17.85%

Q - Quarterly % Change | Y - Year % Change

0

3125

6250

9375

12500

15625

18750

21875

25000

Technical ArchitectNetwork EngineerTechnical Support


2015 2016

0

600

1200

1800

2400

3000

3600

4200

4800

5400

6000

Technical ArchitectNetwork EngineerTechnical Support


2015 2016

Contract vacancies

Permanent vacancies


Technical Support Network Engineer

Technical Architect

Permanent

Permanent

PermanentContract

Contract

Contract

Skills in demand

DevOps - AWS / Azure Wintel - VMWARE / Citrix Networking - Cisco telephony

01 02 03

During the first quarter of 2016, software engineers accounted for more than 42% of all IT jobs posted in the UK. With this in mind, the modest Q1 increases and year-on-year fall in vacancies are disappointing.

Advertised salaries do however continue to grow at more than 2%, suggesting there is still demand for this talent pool, but in a cooler market. Once the UK’s future in Europe is decided, things may well begin to hot up.

Web development roles increased in Q1 by a larger amount, but this did not translate into higher pay rates. Permanent salaries held steady, whilst contract rates fell slightly.

Development

50,526 9,85713,140 1,242

Q+7.66%Y -5.71%

Q+10.46%Y+16.17%

Q+11.25%Y -9.90 %

Q+21.53%Y -21.34%


0

10000

20000

30000

40000

50000

60000

70000

Web DevelopmentSoftware Engineer


2015 2016

0

5000

10000

15000

20000

Web DevelopmentSoftware Engineer


2015 2016

Contract vacancies

Permanent vacancies


Software Engineer Web Development

Permanent PermanentContract Contract

Skills in demand

Selenium2 - Opensource UFT – Unified Functional Tester - HP

Cucumber - Opensource

01 02 03

The start of 2016 was kinder to the permanent side than the contract. Permanent vacancies rose by nearly 20% against the end of 2015, while contract vacancies were far more modest, with around half the growth.

The contract market also saw consistent performance compared to a year ago; unfortunately, this performance was consistently down.

On the permanent side, ERP roles were 20% lower than the same period last year, while application analysts saw 15% fewer vacancies, despite the Q1 rise.

Permanent salaries actually seem to be slightly lower than last year, while ERP contract rates have climbed.

Business Applications

1,929 2,8021,250 368

Q+19.63%Y+19.75%

Q+18.44%Y -16.48%

Q+8.85%Y -4.43%

Q+7.40%Y -7.45%


0

1000

2000

3000

4000

5000

6000

7000

Application AnalystERP


2015 2016

0

300

600

900

1200

1500

Application AnalystERP


2015 2016

Contract vacancies

Permanent vacancies


ERP Application Analyst

Permanent PermanentContract Contract

Skills in demand

01 02 03SharePoint 2016 NetSuite MS Dynamics AX

IT security roles continue to be a particular hotspot. This is especially true for the contract market, where firms look to bring in talent at short notice to either fix a problem, or to fill a specialist skills gap.

The contract market grew by 30% in Q1 – an increase of more than 40% compared to this time last year. Contract rates are also soaring, with the market average more than 20% higher than a year ago.

The permanent market is only disappointing by comparison: vacancies still rose by more than 20% in Q1; 12% higher than the same period last year.

Information Security & Risk

3,190 1,041

Q+22.89%Y+12.64%

Q+29.65%Y+41.25%


0

1000

2000

3000

4000

5000

IT Security


2015 2016

0

150

300

450

600

750

900

1050

1200

IT Security


2015 2016

Contract vacancies

Permanent vacancies


IT Security

Permanent Contract

Skills in demand

Information Security Analysis

ISO27001 SIEM

01 02 03

The first quarter of 2016 told a tale of two halves in this practice area. The permanent market experienced a disappointing fall in demand, which meant the market ended with just over 5% fewer vacancies than a year ago. In contrast, the contract market improved in Q1, and consequently for the year as a whole.

Testing & Quality Assurance

3,659 1,482

Q -8.13%Y -5.13%

Q+5.63%Y+4.81%


0

1000

2000

3000

4000

5000

6000

Software Testing


2015 2016

0

750

1500

2250

3000

3750

4500

Software Testing


2015 2016

Contract vacancies

Permanent vacancies


Software Testing

Permanent Contract

Skills in demand

Selenium2 - Opensource UFT – Unified Functional Tester - HP

Cucumber - Opensource

01 02 03

All areas in this practice are demonstrating considerably lower demand than they were a year ago. Database developers in particular have half the number of contract vacancies than in March 2015.

Database administration roles saw a small rise in vacancies during Q1, while BI roles unfortunately fell.

Business Intelligence roles have also seen a slight contraction in advertised salaries.

Business Intelligence and Data Management is still one of the largest sub sectors of IT despite the recent contraction in pure BI titled positions. This fall in BI titled roles may in part be due to how many BI and reporting roles are being positioned as there is an ongoing trend for organisations to place a greater emphasis on business and sector understanding above fixed technology requirements.

The market for Database Administrators is becoming increasingly candidate driven with a shortfall of candidates available for a steadily increasing number of Big Data, BI and Analytics projects. Particular growth areas are emerging technology projects within the Financial Services and Retail sectors.

Business Intelligence & Data Management

2,126

2,365

3,404777

751

1,216

Q+6.39%Y -28.05%

Q -9.54%Y -21.35%

Q+6.27%Y -19.07%

Q -3.38%Y -50.35%

Q -0.43%Y -31.10%

Q+5.03%Y -14.25%

0

1000

2000

3000

4000

5000

6000

7000

Business IntelligenceDatabase AdministrationDatabase Developer


2015 2016

0

500

1000

1500

2000

2500

3000

Business IntelligenceDatabase AdministrationDatabase Developer


2015 2016

Contract vacancies

Permanent vacancies


Database Developer Database Administration

Business Intelligence

Permanent

Permanent

PermanentContract

Contract

Contract


Skills in demand

Hadoop MicroStrategy Apache Spark

01 02 03

The EU referendum has definitely had an effect on this marketplace with demand down across all areas. This may return once a decision has been made, especially for compliance roles in the event of Brexit.

It should always be remembered that large percentage changes in this market should be taken in context of small vacancy numbers. This means that a 70% fall in contract actuary vacancies only equates to 7 or so less roles per month. So this does not have a massive effect on the wider market.

Financial Risk & Compliance

2,368

93

83442

11

17

Q -10.74%Y -35.39%

Q -14.33%Y -24.39%

Q -25.93%Y -15.31%

Q -23.28%Y -40.91%

Q -4.41%Y -69.44%

Q -42.50%Y -65.31%

0

500

1000

1500

2000

2500

3000

3500

4000

ActuaryInsolvencyCompliance/Risk


2015 2016

0

240

480

720

960

1200

ActuaryInsolvencyCompliance/Risk


2015 2016

Contract vacancies

Permanent vacancies


Compliance/Risk Insolvency

Actuary

Permanent

Permanent

PermanentContract

Contract

Contract


Skills in demand

Compliance officers Risk Business Officers Solvency II Business Analyst

01 02 03

£Hot Jobs Permanent and Contract

Permanent Hot Jobs

Job title Average annual salary

Solutions Architect £69,760.00DevOps Engineer £57,433.00

Senior Java Developer £55,956.00Development Manager £52,613.00

Java Developer £50,984.00JavaScript Developer £49,318.00

C# Developer £47,981.00Developer £47,052.00

Software Engineer £45,046.00.NET Developer £42,344.00

Network Engineer £41,717.00Infrastructure Engineer £41,083.00

Front End Developer £40,902.00Software Developer £39,516.00

PHP Developer £36,972.00Application Support Analyst £35,852.00

Web Developer £35,656.00Technical Support Engineer £31,257.00

Support Engineer £31,047.00Support Analyst £30,456.00

£ Contract Hot Jobs£

Job title Average daily rate

Technical Architect £525.34Delivery Manager £511.79

Solutions Architect £508.28DevOps Engineer £482.43

C# Developer £470.12Java Developer £437.62

JavaScript Developer £410.97Test Manager £405.89

IT Project Manager £396.59Developer £395.82

Front End Developer £353.26.NET Developer £345.69

Infrastructure Engineer £306.41Network Engineer £301.45

Software Developer £301.11PHP Developer £287.43

Tester £284.11Web Developer £278.19

Software Engineer £263.70Support Engineer £230.46

UK Regional Trends Biggest Quarterly Change and Hot Spot

UK Regional Trends

London: -25.00% YoY

Biggest Change: ERP, Application Analyst, Insolvency

Hot Spot: Software Engineer, Technical Author

North West: -29.24% YoY

Biggest Change: Network Engineer, Director, Technical Support

Hot Spot: Technical Support, Web Development

Yorkshire and the Humber: -33.81% YoY

Biggest Change: Project Manager, Database Developer

Hot Spot: Technical Support

Wales: -33.41% YoY

Biggest Change: ERP, Software Testing, IT Security

Hot Spot: Software Testing, Technical Support

East Midlands: -29.37% YoY

Biggest Change: Database Developers, Technical Support, Business Analyst


West Midlands: -30.29% YoY

Biggest Change: Manager, Project Management, Technical Support

Hot Spot: Web Development

South East: -31.12% YoY

Biggest Change: IT Security, Network Engineer, Software Testing


South West: -35.65% YoY

Biggest Change: ERP, Project Manager, Technical Author

Hot Spot: Web Development

East of England: -30.07% YoY

Biggest Change: Manager, Business Analyst, Application Analyst


Scotland: -44.18% YoY

Biggest Change: Database Developer, Manager, Project Manager

Hot Spot: Software Testing

North East: -33.09% YoY

Biggest Change: Business Analyst, Manager, Project Manager

Hot Spot: Web development, ERP, Software Testing

Biggest quarterly change and hot spot by regionIn this section we focus our attention on the change in demand for various regions within Great Britain. We examine which of these parts of the IT market have seen demand increase the most 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.

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©Spring Technology 2015. 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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Market Monitor Q1 report