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More than a third of all ICT contracts let in the three months to the end of June were for just one to three months, signalling that the broader economy is “treading water” rather than starting out on long term projects. Some contractors are also seeing the rates on offer being halved.

ITCRA, the IT Contract and Recruitment Association, which tracks data from its member recruiters, said that a year ago contracts lasting up to 12 weeks made up just 16 per cent of all contracts let – but this has now leapt to 35 per cent. Conversely contracts lasting 7-12 months now only account for about 23 per cent of all contracts, compared to almost 37 per cent a year ago.

According to the CEO of ITCRA, Julie Mills the latest quarterly survey result hinges particularly on the job cuts which are taking place across Queensland, Victoria and to a lesser extent NSW as the State Governments rein in spending. “This is all about treading water – everybody is holding their breath,” she said.

However Ms Mills said that; “the broader outlook is positive”, adding that ICT professionals should take heart from the fact that there are still contracts on offer, unlike some other professions where there is less of an established contracting marketplace.

She said that among ITCRA members about 70 per cent of all placements were now for contract roles, compared to 30 per cent permanent placement.  She said that in some agencies the split was closer even to 80:20.

ITCRA members are placing about 490 contractors into new roles each quarter.

Ms Mills said that although there had been a shift toward shorter term contracts over the last 12 months; “My members are not reporting huge numbers of contractors out of work.” However she did acknowledge that the report indicated Australia was no longer in the grip of a “huge ICT skills shortage.”

ITCRA’s report found that average pay rates have been generally steady throughout 2012 – but that masks some significant peaks and troughs. Hourly rates for web developers have risen 49 per cent while rates offered to account managers have dropped by a half.

In terms of the implications for permanent roles Ms Mills said that she did not expect many more full time jobs to be available for a little while until the economic situation was more settled. And for Queenslanders looking for a public service ICT role she predicted particularly lean pickings for another year or more.

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Beverley Head

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Beverley Head is a Sydney-based freelance writer who specialises in exploring how and why technology changes everything - society, business, government, education, health. Beverley started writing about the business of technology in London in 1983 before moving to Australia in 1986. She was the technology editor of the Financial Review for almost a decade, and then became the newspaper's features editor before embarking on a freelance career, during which time she has written on a broad array of technology related topics for the Sydney Morning Herald, Age, Boss, BRW, Banking Day, Campus Review, Education Review, Insite and Government Technology Review. Beverley holds a degree in Metallurgy and the Science of Materials from Oxford University and a deep affection for things which are shaken not stirred.

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