Software houses and outsource companies now make up 64% of permanent IT jobs finds that tech companies are the driving force in the IT recruitment sector after seeing a 19% annual increase in the volume of permanent jobs advertised by consultancies and software houses.

Specialist IT recruitment website CWJobs and JobAdsWatch has found that overall growth in the IT recruitment sector has increased for nine consecutive quarters, however in the last quarter growth has slowed to a 1% increase in permanent IT jobs. Contract IT pros working for tech firms have seen the most significant jump in demand with a 6% increase in job postings in the third quarter.

Richard Nott, Website Director at CWJobs comments: “This increase in demand is likely to be a result of the higher levels of outsourcing being made by companies in an effort to reduce costs. It will open up a number of opportunities for IT pros who are flexible enough to migrate from in-house to tech companies in response to this trend.”

IT jobs advertised by sector

The government recently announced its plans to cut public sector IT costs by £1.4bn in four years through the proposed ICT Strategic Implementation Plan (SIP). This may further impact the hit public sector recruitment has taken, which as seen a 40% decrease in IT job posts year on year. However there is a clear appetite for IT pros in the retail sector following a 24% increase in demand for contract IT pros and a 14% increase in permanent jobs year-on-year.

IT jobs advertised by skillIT jobs advertised by region

London continues to be the most attractive region in terms of job opportunities. This quarter the nation’s capital saw a 10% increase in contract job vacancies and a 3% increase in permanent work. The rest of Southern England has also seen a spike in demand over the last quarter with a 5% increase in contract work and a 2% increase in permanent work.