Tech & Digital Contracting – a Roller Coaster Ride!

The Tech & Digital Contractor market is an ever evolving one, much like the skills required to work within it. 

Recently it has been a challenging environment with all the ups and downs of the fairground, culminating in the last 12 months with a scarcity of opportunity and stagnant day rates. KPMG’s CEO said hirers face a “fiscally restrained” Spring Statement 2025, but there are some aptly timed ‘green shoots’ appearing.

ContractorUk.com states “For the first time since August 2024, the numbers on the REC’s index for temporary tech roles last month pointed upwards… The IT contractor jobs market carved out a potential foothold for growth in February 2025.”

Changes to the National Living Wage, Employer’s National Insurance and subsequently, The Employment Rights Bill are contributing to a cautious outlook, but technical advancements aren’t waiting around for anybody.

Organisations are increasingly under pressure to adopt AI functionality to remain competitive and the UK Government has clearly set out their ambition under the AI Opportunities Action Plan. This aims to harness the power of AI to transform various sectors and improve the quality of life for citizens. 

Many employers do not currently have the internal talent to scope, lead and deliver in this space and they are likely to look to the contractor population.

Talent in Demand

Unsurprisingly AI skills top the list of those most in demand in the contingent market, closely followed by (and likely in conjunction with) cyber security, all-things data, cloud computing and python development. 

• Artificial Intelligence (AI) and Machine Learning: These skills are crucial for developing intelligent algorithms and models that drive automation and predictive analytics. The technology is moving so quickly that there are few true experts in the field; all and any commercial exposure to AI will be in demand.
• Data Science and Analytics: With the increasing amount of data being generated, professionals who can analyse and derive insights from data are in high demand.
• Cybersecurity: As cyber threats continue to evolve, skills in intrusion detection, risk assessment, and data protection are essential for safeguarding digital assets.
• Cloud Computing: Expertise in cloud platforms and services is vital as more companies migrate to cloud-based systems.
• DevOps and Automation: These skills help bridge the gap between development and operations, improving efficiency and collaboration.
• Blockchain: Beyond cryptocurrencies, blockchain technology is being used in various industries for secure and transparent transactions.

In the last year many organisations have evolved to hybrid working models. This has been mandated to permanent employees and therefore frequently includes contractor populations. There will still be some fully remote opportunities, or potential exceptions based on skills v needs – but realistically, most contract opportunities moving forward will require some onsite presence.

Soft Skills Revolution

One of the most interesting aspects of the GenAI ‘revolution’ is the recognised requirement for a range of soft skills in employees within the field. These skills include critical thinking, problem-solving and collaboration alongside the ability to communicate the strengths and weaknesses of using artificial intelligence, as well as when not to use it.

Qualities like creativity, persistence and decision-making will grow more and more important as AI and the very nature of the professional world continues to evolve. While technical skills will always prove important, intangibles like these can often make the difference between two equally skilled candidates. 

Non-Traditional Role Parameters

In the last 12-18 months within the UK Tech & Digital market, there has been an increased demand for candidates with blended skill sets—roles that now often combine expertise in multiple disciplines. 

For example, there is an upward trend in full stack development as opposed to front or back-end disciplines; DevOps processes (such as CI/CD, Kubernetes) added to support or development roles; Data aligned roles requiring significant Python or R coding; and most needs requiring diverse levels of cloud storage or security capabilities – stand-alone Cloud Engineers are now a rarity.

Advancements in using AI to streamline hiring processes have also driven a ‘skills-first hiring” trend, led by the Tech Sector and including companies such as Google and Apple. Approximately 50% of technology job postings no longer require degrees and 80% of employers prioritise demonstrated abilities over academic credentials.

Forbes writes the “These organizations recognize that conventional degree requirements often exclude qualified candidates who've developed valuable skills—particularly in high-demand areas like machine learning, data science, and automation—through alternative means.”

Legacy Alive & Well

The headlines will always focus on the shiny new toys (not taking away from the leaps forward GenAI has brought to the world) but organisations can’t just wipe their tech estate slate clean and start again. 

Financial Services and Public Sector bodies offer contracting opportunities for those underpinning and therefore critical legacy tech stacks, on which new functionality is built. New arrivals into the contracting market will not have these skills, and expertise will become a commodity in demand.

IT Contracting as an Opportunity

Robert Half stipulates that “Contract work will become a significant employment model in 2025, encompassing freelancing, right-to-hire positions, and on-call work. Companies increasingly use contractors to fill critical skill gaps, especially in AI, technology, and marketing, with about 40% of managers planning to use contract professionals for key projects.”

Contingent Tech & Digital offers scope to broaden expertise – no client has the same tech stack – and gain valuable knowledge and differing industry experience. Contractors have always needed to stay relevant and therefore employable: with the speed of technical advancement this is now more common in permanent roles and therefore even more critical. An appetite to evolve, a curiosity to learn, and a willingness to step outside traditional role parameters to gain new skills, will make you stand out from the crowd.

And on that final note (with a nod to the volume of AI generated CVs and applications), to maximise your success, ensure your online persona and/ or CV are representative of skills and clear on capability; if they are technical, include the hobbies and online hangouts evidencing your interests; and build credibility with TA, Recruiters and Hiring Managers and leverage your professional network.

So, the roller coaster may be stomach churning at times, but it is fast, and it is thrilling, and few really want it to end!