Supposedly permanent technology jobs suddenly transmogrifying into contractor roles
Technology budgets are more stretched this year and gaining sign off to hire is more drawn out, which might explain why seemingly permanent IT roles within investment banks are mysteriously transforming into contract positions at the last minute.
Financial technology recruiters working on permanent positions are bemoaning an increasing trend for banks to rescind full-time jobs, only to then offer them to candidates on a contract basis.
"People are going through the final interview stage, to the point where an offer looks likely, and then the banks suddenly switch the role into a contract position. It's though there's some sort of limitless budget for contractors," says one IT in finance recruiter.
Part of the motivation is to get people onboard for IT projects quickly, as permanent headcount signoff is an increasingly onerous process, says Ben Cowan, associate director on the contract desk at Astbury Marsden.
"Flexibility of resource is also part of it - they're easier to hire and easier to fire. There's not the same bad PR for serving notice on a contractor compared to making permanent staff redundant," he says. "Technologists currently out of work usually accept a contract role, with banks promising a permanent deal down the line."
This trend isn't across the board, however. Cowan says that eFX and risk are the main areas where banks are taking on contractors rather than permanent hires.
Meanwhile, recruiters suggest that banks like Lloyds and RBS have been attempting to reduce their reliance on contractors this year, while some bulge bracket banks - Morgan Stanley and BarCap, for example - usually prefer to recruit on a permanent basis.
"Most banks came into this year with intentions to reduce their dependence on contractors, but a need to kick-start projects quickly, with limited recruitment budgets, has scuppered this ambition slightly," adds James Richmond, sales director at IT in finance recruiters Cititec.
