In a fundamental market shift no-one saw coming, the demand for IT and business transformation staff to fill specialist roles within the banking sector has increased exponentially. This shift is in part due to the findings of the Financial Services Royal Commission and also a number of banks separating out their wealth management businesses.
The flow-on effect of this is a quickly diminishing pool of talent as the banking and financial services sector seek candidates outside of their historical parameters to help them undertake large-scale remediation projects.
Consequently, the race to find top talent is on and corporates looking to entice the right staff are implementing lucrative employment packages and salaries, which have jumped in the past year.
Fallout of the Royal Commission
The Royal Commission produced a scathing report on Australia’s banking and financial services and the sector has responded by opening itself up to disruption on a scale never before seen in this area.
As a result of this disruption, there is a demand project managers, business analysts, data analysts and change professionals.
This is particularly the case in New South Wales which is the headquarters to a number of large banking and financial services organisations now undertaking large-scale remediation programs.
This activity is pushing up contractor rates up for contractors experienced in risk, compliance and remediation by as much as 20%.
Drop off in government demand
The second half of FY19 has also seen a notable decline in government demand for ICT contractors, at both a state and federal level, due in some part to elections with a marked increase in the number of candidates on the market.
Usually the largest user of ICT contractor demand, there has been a marked slowdown in government hiring. This has been compounded by a number of large government departments merging.
In Q4 that slowdown in demand from government will continue before picking up in the new financial year when government department structures and budgets are locked down leading to expected particularly strong demand in Q2 FY20.
While government demand for ICT contractors has dropped off, there continues to be a strong call for software developers and cloud infrastructure specialists and a clear shortage of project management, DA and change professionals.
Consequently, we have seen wages for cloud infrastructure professionals increase markedly over the past year, while demand for senior software developers continues to be consistently high.
While demand from the state and federal governments for ICT contractors has slowed markedly in the past year, we expect this will bounce back in Q1 leading to a strong Q2.
Those with experience in change management, project management and business analysis will continue to command high packages from the banking and financial service sector as it looks to continue the remediation work.
Please feel free to contact me directly if you would like to discuss the Salary Guide.
Spencer Stirrat, Davidson Technology NSW General Manager