ICT wages rise more slowly than UK national average

13 November 2012
By Anna Karhammar
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Unhappy ICT worker

Unhappy ICT worker

Salary increases of ICT professionals in the UK have fallen behind the increases seen in the national average wage since the economy took a downward turn, reveals specialist IT recruiter Randstad Technologies.

Since 2006, the average annual salary of an ICT employee has risen by only 4.2 per cent, compared to a rise of 11.4 per cent for an average employee in the UK during the same period, Randstad discovered after analysing data from the Office of National Statistics (ONS).

“IT is now a truly global industry, and competition from abroad has impacted pay rises in IT service delivery,” said Mike Beresford, managing director of Randstad Technologies.

“With European workers providing cheaper alternatives for cost-conscious companies, outsourcing delivery abroad, combined with an influx of skilled foreign workers has meant that the supply and demand balance has shifted in employers’ favour, keeping a lid on pay inflation over the financial crisis,” Beresford continued.

Since 2006, the average technology professional’s salary has increased by £1,534 per year, to £38,262 in 2011.

Wage growth across the industry has, however, not been uniform, but  “more like the board game snakes and ladders, with different skill sets commanding different premiums”, said Beresford.

Management positions have garnered the sector’s biggest pay increases, rising by an average of 7.3 per cent in the last six years to £47,254 in 2011. Software professionals’ wages also rose but by less, seeing a 5.7 per cent increase to £37,000.

Wages for those in IT planning and strategy have, however, fallen 5.8 per cent since 2006, pushed down by an especially large annual drop of 8.5 per cent in 2011 alone.

Wages growth for IT service delivery roles have been negligible, rising by 1.9 per cent over the period. Of these, IT user support technicians’ wages have grown the fastest at 5.1 per cent, while IT operations technicians’ wages rose by 2.5 per cent over the period, following a 1.3 per cent annual drop last year.

In terms of future wages, IT systems and infrastructure roles are forecast to bring the largest increases over the next 12 months, according to Randstad’s latest Salary Survey. IT systems professionals in London could see wages rise by 20.4 per cent in 2013, while those in IT infrastructure and change management could see the second and third largest increases of 11.1 per cent and 10.3 per cent respectively. 

“We are currently seeing growing demand for strong solutions architects and CRM and ERP technical implementation specialists,” said Beresford.  

Other roles currently in short supply include those with expertise across the Microsoft technology stack, UI UX or data analytics. Infrastructure experts are also in high demand, particularly those with virtualisation, security and network design specialisations.

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