This is coupled with specialised pockets seeing strong growth and conversely an oversupply in some generalist areas seeing these rates decline.The guide offers insights into the rapidly evolving technology contracting market in Australia and New Zealand. It highlights significant shifts in contractor rates, along with regional insights and growing demand in niche sectors such as cyber security and AI.

During COVID, organisations were seeking to get as many bodies in the door as possible, which led to contractor rates surging across Australia and New Zealand.

Rates have now stabilised in the past 12 months, albeit with significant nuances. While some rates have declined, others, particularly in niche areas, continue to rise. Two areas to see rates grow at a strong pace have been penetration testing in the world of cyber security, along with flutter developers.

The Guide suggests employers have also become far more considered with soft skills being valued more than ever by employers, with clear communication, problem-solving and adaptability vital for contractors to secure positions. 

Additional Key Findings:

• Strong Demand for Technical Roles: Hands-on roles such as software development, IT architecture, and cyber security remain highly sought after, with organisations willing to pay top dollar for experienced professionals. In contrast, roles in project management and business analysis have seen a more selective hiring approach.
• Biggest Rate Increases: Cybersecurity engineers, project managers, and front-end developers have seen notable rate increases, reflecting the growing need for specialised skills in digital transformation projects across various industries.
• Regional Variations: The guide also highlights regional differences in contractor rates, with states like Western Australia and the ACT seeing higher rates due to ongoing transformation projects in the mining and public sectors.
• Federal Government Contracts Shifting: IT contracts offered by the Federal Government are diminishing in length of term. Recruiters are seeing engagements shorten to between six and 12-months, where previously there were many rolling 12-month contracts. Additionally, ahead of the Queensland election, Hays has seen a pause in government hiring. This is expected to result in a large uptake of programs in 2025, regardless of the election outcome. 

Adam Shapley, Managing Director of Hays Australia & New Zealand, commented, "The IT contractor market is now more nuanced than ever. Organisations are discerning in their hiring decisions, making it essential for both contractors and employers to understand market conditions to ensure they are getting the right value."

"Employers are now prioritising contractors who can seamlessly integrate into teams, communicate clearly, and solve complex problems in real-time. Contractors who can demonstrate suitable soft skills will not only stand out but secure the most sought-after roles."
For contractors looking to stay competitive and for hiring managers seeking the right talent, the Hays FY24/25 IT Contractor Rates Guide is an essential resource. For more detailed insights and rate comparisons, download the Guide here.