Good news for IT Contractors as Australian IT hiring turns to Contractors

With IT seeping into all areas of the business, and working on a project basis, the hiring of IT contractors has become a more popular trend in Australia, the latest edition of Hudson’s Employment Trends report says.

Surveying 2,887 Australian employers about their hiring intentions, the report found that 29.4% of respondents intended to hire contract IT staff, with the intention to hire permanent IT staff falling 3.6% from the last report to 25.2%.  Indicating that IT contractors have more chance of getting a job than someone seeking a permanent tech role.

Hudson ICT director Tim Davis stated “Project work is always a primary driver for contractor demand and the continued investment in business transformation projects across the country is one key demand generator for contract IT professionals.”

 Furthermore Davis explained that the upcoming federal budget due in May was a likely reason for businesses are waiting to make permanent hires.

He also said “Organisations are being more cautious in their hiring procedures; making sure they make the right hire” – as a single bad hire can set back companies tens of thousands of dollars.

Overall, IT led the economy for the third straight quarter, with the intention to hire rising 2 points to 29.4%, followed by the public sector on 23.8%, and human resources up 6.8 points to 22.2%.

On an overall state basis, NSW jumped 5 points to lead the country on 27.9%, followed by South Australia on 24.7% as the only other state above the national average of 23.3 %. Queensland was next on 22.5%, with Victoria on 21.7%, Western Australia with 20.2%, and the ACT on 15.8%.

Hudson executive general manager, Dean Davidson, said “An improved hiring outlook for NSW gives confidence because its economy is broad-based, with a balanced range of industries and professions. Often a strong employment outlook for NSW is a good indicator for the direction the national economy might take.”

“With NSW’s strengthening economic growth we’ve seen a sizeable employment increase in professional service businesses, while organisations continue to drive and leverage operational efficiencies via IT infrastructure enhancements and IT outsourcing,” he said.