Experienced IT contractors are prospering in a recovering interim management market, according to the July 2010 survey by management agency Russam GMS. By Helen Beckett [09/08/2010]
The survey of 11,000 interim managers across all sectors found that activity levels had increased by 11% over six months, while, on average, daily pay rates were unchanged: an average daily take-home pay of £592 in June 2010 matched December’s daily wage slip in 2009.
At the lower end of the IT spectrum, however, interims experienced a 5.7% drop in pay from £649 to £612, but this was at odds with the experiences reported by more seasoned IT interims. "I haven’t experienced a drop at all. I ask for £900 a day (unchanged for the last two years) and get it with no push back from clients," commented one respondent.
This interim manager further commented, "I suspect the sheer volume of interims - as a result of the recession - has dragged the average rate down, but I guess those who are career interims with solid experience will be successful. The rate reduction is probably due to commercial pressures of the clients and pressure on rates from new entrants willing to offer comparable skills at a lower rate."
Another respondent pointed out that recessionary pressures on the IT department have not abated – yet. "Most of my work is around IT departments, this has been one of the hardest hit areas of most companies as many companies’ boards still do not see any necessity to bring spending back to anywhere near maintenance level, never mind improvement levels."
Charles Russam, chairman of Russam GMS, said that sector plays a big part in determining daily rate and demand. “In the private sector, financial services are putting more work out to interims and the charity sector – now renamed the civil society – is busy although funds are still tight,” he pointed out. Interestingly, the research revealed that planned job cuts in the public sector have not yet hit the interim management market.
Russam remarked that the research highlighted four key trends for interim IT contractors:
- Experience and tradecraft wins over being a beginner
- Rates can differ hugely between sectors
- Clients have slowed down over new IT projects
- Pressure on rates apply at the lower levelss
Even the most highly paid ICT interim cannot afford to be complacent in this market, warned Russam, “Our advice to Interims is to be flexible, hone your skills and, where necessary learn new ones and look for opportunities through networking, Providers and personal contacts. Interims who are the most entrepreneurial will fare the best in this market.”
View from the top – salaries of interims
"My personal experience is the opposite of the survey findings but I had to change to a new industry sector – energy and utilities – in order to increase my lot. My rate has increased over the past 12 months from £800 last September, to £850 in January to £950 (a day|) at the end of June. Rates and opportunities didn't appear to be holding up as well in other sectors I was working in.
"I haven’t experienced a drop at all. I ask for £900 a day (unchanged for the last two years) and get it with no push back from clients. I also have never been so busy as I have been over the last two years, and I have been in the interim management game for the last sixteen years.
"Top rates are going up. I just secured a three month contract at £1550 a day."
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