Press releaseMonday 05 November 2007

CREDIT CRUNCH LEADS TO FALL IN PROPORTION OF IT CONTRACTORS IN FINANCIAL SERVICES SECTOR

• Lowest level of confidence in financial services sector for four years
• Record percentage of IT contractors now in engineering & construction

The proportion of IT contractors working in the financial services industry is at its lowest level for three and a half years following the recent credit crunch, according to research from giant group plc, the contractor services provider. 22% of IT contractors now work in financial services, compared to 25% in the 3rd quarter of 2007.

The research by giant group, based on a sample of 1,500 contractors, also reveals that optimism about job opportunities in financial services has declined significantly over the past 12 months. 23% of IT contractors expect the most job opportunities to be in financial services next year, compared to 30% at the end of 2006.

Matthew Brown, Managing Director, giant group, comments: "The advantage to City institutions of using IT contractors is that they are a very flexible resource, which can be highly responsive to market conditions, and it is for that very reason that numbers are likely to bounce back strongly as the market recovers."

"The turmoil in the credit markets may actually lead to some good opportunities for IT contractors in the medium term, despite the short term correction. Banks and funds will be looking at IT solutions, such as improving their computer risk modelling and beefing up their back office IT systems to handle exceptionally high trade volumes."

He adds: "UK retail banks are still spending on security and e-banking technology, while investment banks should continue to require IT people in areas like risk management and compliance, so in other areas of finance IT skills should continue to be very much in demand."

According to the giant research, the public sector and the engineering & construction industry have both increased their shares of the IT contractor jobs market. 14% of IT contractors now work in engineering & construction, the highest proportion in the four years giant has been conducting its survey.

Matthew Brown says: "The UK engineering sector is already booming, and with the design stages of large projects such as Olympics 2012 and Crossrail only just underway, there is likely to be further demand for IT skills for the computer modelling and design testing stages of these projects prior to construction, as well as during the network infrastructure phase."

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