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IT Contractors in Demand from Risk-Averse Banks
Financial Times Limited (London, England) February 13, 2008, Wed, London Edition 1
By MAIJA PALMER
IT contractors working in the UK financial services sector have seen an 11 per cent rise in pay in the past six months as banks race to update their trading systems and risk management software in the wake of the credit crunch.
Hourly rates for IT contractors for banks rose from Pounds 45 to Pounds 50, the highest level in two years, according to new figures from the Association of Technology Staffing Companies (Atsco), the trade association for the IT recruitment sector.
Demand was keenest for staff with experience in risk management systems and compliance, said Stephen Grant, managing director of Cititec, an IT recruitment company focused on investment banks.
Problems at Societe Generale, where a rogue trader was able to circumvent the bank's risk controls, is likely to fuel this trend as other banks examine their systems to make sure they are not similarly vulnerable.
Mr Grant says despite fears of a macro-economic slowdown, Cititec has had its best January to date. "Banks are revising their trading strategies right now and this is leading to an increased demand for IT business analysts whose job it is to align IT systems with changing business needs.
"A lot of IT investment is now being channelled into beefing up trading systems on equities and commodities desks, where more efficient infrastructure is needed to process higher transaction volumes."
Banks are thought to be revising computer-driven quantitative trading models, which sustained some of the heaviest losses during the subprime lending squeeze.
"These funds will need to look at refining and testing their computer models so that they are better equipped to predict and respond to market volatility," said Jon Butterfield, managing director of ReThink Recruitment, the IT staffing company.
Banks are having to shore up their back office computer systems to help cope with trading volumes that have surged since July when market volatility began.
As well as IT contractors, a number of technology vendors supplying banks have seen increased interest over the past months.
Simon Garland, chief technology officer at KX Systems, which supplies databases for banks, said: "I've been suddenly getting calls from new departments within banks, which hadn't been interested before. It is a significant increase - and growing."
Andrew White, head of trade and risk management at Reuters, said: "Inquiries started in July and interest levels in risk are greater than they have been - near top of the agenda for banks."
©2008 The Financial Times Limited.
All rights reserved. Used with permission. |
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