Ireland's financial IT sector is booming, but is the contractor route better?

Barely a week goes by without some sort of announcement that a financial services technology company is setting up in Ireland. However, the volume of new roles combined with that fact that more and more technologists are choosing the lucrative contract route, means a shortage of candidates looks likely.

Yesterday, financial services software vendor Misys revealed that it was expanding its 100-strong Dublin operation by 35 people through the establishment of a new R&D team in the capital. Last week, tech firm LANDesk Software said it was starting an office in the IFSC and creating 15 jobs.

This follows a raft of new job announcements from tech vendors and financial services organisations themselves, as well as the ongoing recruitment in the gaming sector.

"In terms of development staff within financial services, as well as industry and the public sector, demand massively outstrips supply," says Andrew Crawford, country manager - Ireland at recruiters Elan IT.

Part of the reason is that a previously rundown area of Dublin's docklands is fast becoming Ireland's answer to Silicon Valley, home to array of multi-national companies and hub of highly skilled technologists. Another reason, though, is the potential for cost-savings. Ireland's 12.5% corporation tax is appealing and, compared to the City of London, financial services IT talent is cheap.

Even an experienced developer working for a financial services firm in Dublin is likely to earn €60k, according to recruiters. The minimum developers working on a wholesale financial services firm in London can expect is 60k (€70k), while more senior technologists earn up to 125k.

Perhaps not surprisingly, more people are becoming contractors in Ireland, where day rates for developers have risen from an average of €400 a day to €425 since the beginning of the year, suggests Crawford.

"When looking for a permanent employee, companies require previous financial services industry experience, but developers working on a contract within these organisations rely on their core skills - whether that's Java, J2EE or .Net," he says. "This means it's possible for contractors to switch between industries and ensures that there's no shortage of new opportunities."