There is an air of optimism in the IT market at the moment, it may be hard to see through the threat of economic woes but trend-bucking is awry in the industry.

Giant have just released figures showing an increased number of IT contractors who are sat on the bench. Currently 5.5% of contractors are out of work, up from 4.4% last year. Bad news you might say, but that’s an extremely low figure when you consider the economic climate at the moment.  So despite this slight increase in joblessness amongst contractors, there are two reasons to be optimistic if you work in IT.

Reason One: There is still a skills shortage, and while this is reflected in certain technical areas that peak and trough like the fortunes of the England rugby team, the major shortage is for business and technical hybrids. As more and more ‘techie’ roles are outsourced, the UK is relying on high level consultants and managers who have both a business and technical mind in order to keep ahead in the market. These shortages push rates higher, even in economic slow downs and the contractor market keeps on growing.

Reason Two: As companies grow increasingly nervous about their finances, more of them are looking to their IT departments and external consultancies to provide cost savings by streamlining systems and processes. Accenture for example have just reported considerable growth in their consulting and outsourcing businesses, up 18% on last year, as more companies look to maximise their performance during tough times.

This ultimately means more positions become available and more contractors are required. Unfortunately, permanent consultants will feel the squeeze when looking for new roles , as companies are less willing to bring on permanent resources. However, with the skills shortage in full swing there is undoubtedly still significant demand.