Banks and hedge funds turning to Facebook and Google for tech expertise

Hedge funds and mid-tier investment banks are preparing ambitious raids on the tech teams of the likes of Facebook and Google as they look to develop real-time trading applications.

Financial sector firms are hoping that they can convince technologists working on high performance computing and algorithmic programmes within some of the largest new media companies to switch.

The selling point of making the move would have traditionally been obvious - you can earn more at a financial institution. But it's no longer so clear cut, suggest IT recruiters working on these projects.

"Some of these guys are on a 90k base salary, with the potential of a 60% cash bonus, and some very good benefits packages," bemoans one recruiter. "What's more if you look at places like Facebook, the potential for equity options if it goes public in 2012 is huge. So why would they move?"

So, what makes these people so desirable? For a start, most have a first class Unix engineering degree from a red brick university, coupled with a PhD and experience of more obscure technology such as Hadoop, H-base and Erlang programming language, say recruiters.

"Most of the bigger banks would have Unix engineering teams, but these are no more than a handful of people, who are very well looked after," says Mark Warburton, director of IT recruiters Pioneer Search. "Many who would have worked in smaller banks have been attracted to more cutting edge new media firms, and the challenge is attracting them to the financial sector."

Some hedge funds have upped the ante. Warburton says that a 100k base with a bonus potential of multiples of salary is being offered.