Permanent vs. contract
During the heady days of the dot com bubble, when jobs were there for the taking, and even semi-skilled staff were commanding significant salaries, IT made a name for itself as a contract industry.
However, the latest spike in demand for staff is seeing a shift in this thinking. Gone is the bubble "build-it-and-they-will-come" mentality, having been replaced by heavy investment in structural, outcomes-focused projects, and an associated long-term vision.
Corporate Australia is also well aware of a looming skills shortage across all sectors, including healthcare and hospitality, as generation X and Y DINKs (double income, no kids) buck breeding for big spending.
Peter Acheson, CEO of technology recruitment specialist Ambit says such influences are creating an IT jobs market where employers are looking to convert long-term contractors to permanent positions, and provide long-term career paths rather that project-based contract work.
"While contractors in a boom prefer to be contractors, at the moment business is trying to convince them to take on permanent roles," Acheson says. "Although contracting in IT is still strong compared to other industries, there is a shift towards more permanent recruitment practices, as management attempts to mitigate against future shortages with a strong internal skills base of permanent staff."
Andrew Millar, consulting manager for the IT Contracts Division at Link Recruitment, says the boom is producing a cyclical demand for permanent or full-time staff, although in a market where demand is often outstripping supply, business is prepared to make compromises where necessary.
"Most companies are using agencies for contract work and are more likely to try and fill the permanent roles themselves," Millar says.
Characterising this trend as "try-before-you-buy", Macro Recuritment managing director Daryl Keeley says the current phase of growth is seeing corporations and government agencies switch long-term contractors to permanent positions where possible.
"When the market is buoyant, like it is at the moment, smart companies are adopting a strategic plan to keep good staff on for the long term," Keeley says.
As a result many IT professionals are finding themselves torn between attractive offers from current employers, and interstate opportunities that promise good remuneration and lifestyle premiums.
Although the business cycles underpinning these trends are perhaps the most obvious, there are also technical cycles at work. Enterprise Resource Planning (ERP) software packages adopted at the turn of the century are now past the customisation phase which relies heavily on contractors -- and as a result demand for these short-term positions has subsided in the wake of demand for more long-term management and administrative roles.
Many of the government contracts responsible for job growth in the ACT are in the early part of this cycle, and are taking on contractors where possible to participate in the initial development and implementation project phase. Sydney- and Melbourne-based developers can be found populating Canberra bed-and-breakfasts at the moment, as government agencies attempt to source short-term staff to fill project gaps.
While permanent positions have been strengthening, this kind of project work is also readily available, says Peter Noblet, a regional director at recruitment company Hays.
"Job opportunities are occurring across the board in both these areas. There has been a sharp increase in contract assignments due to the number of large projects taking place," Noblet says. "Generally opportunities are split 50/50 between permanent and contract."
However, with demand for skilled staff so high across Australia, experienced techies can largely pick and choose, where, when and under what conditions they work.
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