Demand for certain IT skills has softened as a result of the economic downturn, according to a recent IT&T salary report.
The Peoplebank Quarterly IT&T Salary Index covers more than 50 ICT skill categories based on permanent and contractor employees across Sydney, Melbourne, Adelaide, Brisbane, Perth and Canberra. The latest report ran from December to February.
Twelve months ago, the market was overheated for IT people, Peoplebank COO, Peter Acheson, said.
“The first thing companies do when they hit a period of economic turbulence is freeze headcount and put major capital projects on hold. Some of them would be IT projects and as a result of that there’s now less demand for IT people then there was a year ago,” he said.
Salaries also fell across many job titles tracked, but the fluctuations in salaries for similar roles in different cities show that demand remains a factor. Sydney remained one of the highest paying cities, with Java/J2EE developers, technical solutions architects, project managers and business analysts most in demand. According to Peoplebank, this was mainly due to major projects in the NSW government and telecommunications arenas.
NSW-based enterprise organisations were roughly paying $350,000 for a senior IT director, compared to $200,000 for similar roles in Perth and Brisbane. In Adelaide, IT support staff and SAP skills were most in demand. The index also found salaries increased by roughly 10 per cent for junior ERP staff with SAP and Oracle financial skills.
“There are more available candidates than there are jobs and as a result of that, employers are able to negotiate better arrangements from the point of view of lower salaries,” Acheson said.
While the ICT skills market remained buoyant in most cities, Canberra contractor rates had fallen by 5-10 per cent. But Acheson remained confident demand would strengthen throughout 2009, particularly around Web 2.0 skills.