Current Trends in IT Contracting

With the global IT industry valued at around $8.5tn in 2023, rising from its previous peak of $8.1tn in 2022, it’s no surprise that we’ve seen a subsequent rise in the demand for IT contracting jobs, too. 

The growth of cloud computing, automation, machine learning, and the Internet of Things (IoT) also means that we’re witnessing strong growth in the demand for—and lucrative salaries offered in—software engineering jobs. With cloud computing expected to expand by a compound annual growth rate of 17.5% through to 2025, we foresee continued buoyancy in this business-critical market. 

This guide explores the top five IT contracting trends that have shaped the tech landscape in 2023, and discusses how they’ll continue to make an impact in 2024. Alongside this, we’ll cover how IT contracting jobs are helping to change the industry through a renewed focus on skills and experience, which are helping to support broader strategic advisory efforts and bridge skills gaps as businesses look to run leaner and more efficiently amidst an uncertain economic outlook.

The Top Five IT Contracting Trends for 2023 and 2024

Based on recent statistics, the US market for IT contractors has expanded by 32% alone in 2022, with growing demand for IT contracting jobs resulting in organisations looking to gain access to the skills, experience, and unique perspectives that they need to remain competitive within the dynamic economy. 

As cybersecurity threats increase and new technologies emerge, businesses will require IT contractors more than ever to help ameliorate the talent shortage impacting businesses across all tech-forward industries. So, what are the top trends that have shaped IT contracting jobs in 2023, and will continue to help the industry to evolve moving into the next year?

• IT Contracting Jobs in Web3 Continue to Evolve

Despite reported declines in the broader cryptocurrency market, Web3 platforms continue to grow in 2023, with an anticipated rate of growth of around 43% annually between now and 2030. 

The field continues to evolve, with new roles and opportunities emerging all the time, from software and smart contract engineering, to community and business development managers. The demand for research experts and consultants in decentralised finance (DeFi), NFTs, and blockchain is also on the rise. 

There is a growing need for skilled professionals who are able to develop, maintain, and operate decentralised Web3 applications and services. Employers are on the hunt for those with the broad range of competencies required to make an impact within the sector. 

Expertise in Rust, Go, C++ and Java is helping those looking for the latest IT contracting jobs to secure lucrative salaries, alongside solid abilities in designing interfaces for high-quality user experience, and the adaptability and flexibility needed to support this still fledgling but disruptive industry.

• The Internet of Things Empowers Industries

A network of interconnected devices that are empowering everything from consumer electronics—such as smart fridges which can tell you when your milk has soured—to the manufacturing and industrial engineering industry, the Internet of Things (IoT) has created a number of IT contracting jobs and opportunities over the last few years, and it’s influence isn’t looking like it’ll wane any time in the near future.

The IoT means that many organisations require strategic advisory as they aim to automate the repetitive, labour-intensive tasks that take up their employees’ time, enabling them to instead focus on revenue-generating activities. Over the next decade, there will be a broader emphasis on data-focused roles, with analytics projected to grow faster than the anticipated average for all occupations between now and 2032. 

As businesses across all sectors and fields begin to understand and leverage the benefits of the IoT, economists expect the demand for data, cybersecurity, infrastructure, and software engineering jobs to continue to sustainably grow.

• Sustainable Tech Makes An Impact Thanks to IT Contracting

A push towards sustainability by major tech-forward corporations and smaller fast-growing startups is creating IT contracting jobs in three business-critical areas: internal IT, enterprise, and customer operations. 

From reducing the greenhouse gas (GHG) emissions associated with the electricity used by IT services to eliminating the waste of finances represented by overspending on resources and materials, a push towards sustainable tech is helping organisations to save money and put their best ecological foot forward. 

Indeed, market research and insights specialists Gartner anticipate that 50% of Chief Information Officers will be measured according to sustainably-minded performance metrics by 2025. 

As a result, executives across the technology and software development industry will require strategic advisory and contracting services which can support them as they aim to fulfil their organisation’s vision and meet their green goals.

• From Pharmaceuticals to Engineering: The Growth of Digital Twins

Digital twin technologies—utilised in several innovation-driven industries, where it’s necessary to evaluate the performance of physical infrastructure, assets, or products to identify where improvements can be made—are helping to revitalise and transform many industries, from pharmaceuticals, to process engineering, to manufacturing and beyond. 

The adoption of these technologies will, much like the Web3 sector, require experts with working knowledge of the design and performance of products, components, and processes utilised within a vast range of industries. 

Aerospace, automotive, defence, utilities and energy are all expected to benefit from these rapidly evolving technologies, with the global market for digital twins expected to grow from its current value of $10bn to a global value of $110bn by 2028. 

With talent shortages continuing to bite this innovation-led sector, IT contracting will continue to be utilised to assist in securing the growth and competitiveness that businesses will require to reduce costs, optimise maintenance schedules, monitor assets, reduce downtime, and improve quality.

• Contract Lifecycle Management Plays a Major Role

Increasing demand for the agile management of employment contracts for IT contracting jobs means that as the nature of work continues to change within the tech-forward industries we’ve explored, companies will want to adapt quickly to their changing circumstances. 

As a result, one of the major trends that we see continuing to play a significant role in the industry as we move forward will be the continuing reliance on contract lifecycle management software, which helps companies to adopt ways of rapidly scaling their workforce up and down to respond to shifts in consumer or business demand. 

Similarly, changes in compliance and legislation surrounding employment—such as developments to IR35 regulations in the UK, for instance—mean that internal HR and talent management teams will need support in ensuring that they’re meeting all relevant employment laws. 

Contract lifecycle management software is helping to shorten approval times for the contract review process, ensuring that new employees can be brought on board quickly, whilst cloud-based solutions are ensuring that contract visibility is foregrounded at all times. This means that organisations and their employees have better accountability, allowing them to easily refer to the terms of their employment contract to make certain they meet all of the responsibilities required of them.

It’s clear that these trends in contracting are a broader litmus test for the wider tech industry, showing us that as we move further into the decade, business leaders will continue to focus on ensuring that they’re able to remain as competitive as possible within a rapidly fluctuating market. 

Access to talent and scalable solutions are crucial in this environment, so from software engineering jobs to business-critical strategic advisory, IT contracting will continue to play a vital role in ensuring longevity and efficiency for businesses across the various sectors we’ve covered in this section.

How IT Contracting Jobs are Changing the Tech Landscape

As we’ve seen in our discussion of the trends impacting IT contractors in 2023, in the ever-evolving world of increasingly tech-focused industries, IT contracting jobs continue to be a vital component in shaping the way that we work and how we accommodate the shifting demands of consumers and businesses. 

Alongside our discussion of the trends that are leading to innovation in the world of IT contracting, then, we’ve collated three key areas where these experts—and the model they’re employed under—are making a significant impact.

The Shift Towards Skills-Led Job Descriptions

Employers are increasingly focusing on skills and expertise when crafting the descriptions they’re using to advertise for jobs as a result of the shift towards IT contracting. Rather than angling for extensive educational requirements, qualifications, and professional experience, recruiters and hiring managers want to know what candidates can do, not where they’ve been. 

As the broader industry continues to advance in areas such as cloud computing, automation, and the Internet of Things (IoT), the skills required to produce innovative products and services are in high demand. As a result, businesses are on the lookout for IT contractors who possess niche expertise in specific programming languages to navigate the rapidly evolving technology world. 

This shift towards skills-led job descriptions means that IT contractors and permanent employees alike are in as good a position as ever to show business leaders how indispensable they truly are. As long as they’re continuously updating and diversifying their skill sets, then they can prove how they’ll make an impact, showing they can get up-to-speed quickly and begin generating revenue for their employer.

Accommodating Increasing Demand for Scalable Talent Solutions

Businesses across the globe are aiming to prioritise cost efficiency and minimise waste in 2024. With this focus on internal finances, companies are increasingly turning to contracting to meet their targets, especially when it comes to scaling their workforce to accommodate specialised skills for the duration of a project. 

IT contractors offer organisations the flexibility to quickly onboard experienced professionals, ensuring that projects are able to progress smoothly and, moreover, that pay is linked to deliverables being handed in by the deadline. 

Whether it’s a short-term project which requires the staffing of software development jobs, a cybersecurity audit, or implementing organisation-wide automation solutions, IT contractors are engaged for only the time they’re needed, allowing businesses to remain agile and responsive within a rapidly evolving landscape.

For those working in interim roles, this means a wealth of IT contracting jobs across different industries are available, enabling professionals to gain exposure to cutting-edge technologies and explore a broad range of fields, allowing them to choose projects which most closely align with their career goals and aspirations. 

Supporting Strategic Advisory Efforts

In a time of near-constant technological disruption, strategic advisory services are in high demand. IT contractors are increasingly being called upon to offer their guidance and insights to organisations looking to optimise their tech-related operations. These experts offer advice and recommendations for companies and business leaders seeking to make informed decisions regarding their infrastructure, cybersecurity, and broader digital transformation efforts that will keep them competitive in their sectors. 

The Internet of Things (IoT) is a prime example of how IT contracting supports strategic advisory efforts. As more and more businesses leverage IoT to automate tasks, improve efficiency, and monitor production processes, they will require support with data management, cybersecurity, and the development of networking infrastructure. IT contractors with expertise in these areas are playing a role in helping companies navigate the complexities of implementing these innovative technologies, ensuring a smooth transition. 

Furthermore, the push towards sustainability in the tech industry is creating a demand for strategic advisory services related to sustainable tech practices. IT contractors who can offer guidance and help businesses to reduce their environmental impact are often in high demand, a trend which aligns with the broader movement towards eco-conscious practices in IT and technology as a whole.

What Have We Learned About the Latest Trends in IT Contracting?

The ever-evolving landscape of IT contracting jobs in 2023 and beyond is set to significantly and positively disrupt the technology industry, and those other sectors that heavily rely on the work of IT contractors to succeed, such as manufacturing. 

Key trends, including the shift towards sustainable technology and the digitalisation of our ways of working via the Internet of Things, are helping to reshape the way that businesses operate and remain competitive within this dynamic market. 

Contracting continues to play a vital role in providing businesses with flexibility, expertise, and guidance, all strongly required to thrive in a rapidly changing technological environment. 

As we move further into the decade, access to talent and scalable solutions, particularly in IT contracting and software engineering jobs, will remain essential for ensuring longevity and efficiency in various sectors, making contracting an indispensable component of business success in these tech-forward sectors.

Experts in IT Contracting and Permanent Recruitment

At Fruition, our consultants are committed to supporting some of the most innovative businesses within the industry with their IT contracting needs. We provide project delivery professionals on a contract and permanent basis, covering all levels of seniority from early career to executive appointments, allowing you to gain rapid access to the skills and experience you need.

If you’d like to learn more about our recruitment services for IT contractors, or you’re looking to build an internal team with the right blend of capabilities to make an impact, contact us today for a no-nonsense discussion of your ambitions.