What are the top destinations for IT contractors?

Michelle Reilly

Growth in mobile technology and the ‘internet of things’ has led to huge demand for IT contractors. Michelle Reilly looks at how this affects markets in different countries.

There’s a good chance that you’re reading this on your phone or tablet and obviously these devices and the programmes that operate on them don’t just magically appear into existence – they require specialists to design, create, embed and install them.

Multiple factors including the growth of mobile technology along with the ‘internet of things’ and the associated threats that come with it (cyber terrorism) has led to one thing – significant demand for IT experts.

And, unfortunately there are far too few of these professionals available in the permanent market. IT contractors are sought after across the globe and with research suggesting that the number of these individuals currently out of work has halved in the past year, it looks like demand is already heating up.

But where is it stemming from and what should recruitment agencies placing IT contractors into these markets be aware of?

Ireland

The Irish IT sector generates around €50 billion each year and employs around 70,000 skilled professionals. A number of major firms such as Dell, Microsoft, Google, Oracle and Symantec are just some of the companies which have operations centres based here and so it shouldn’t come as a surprise that Ireland is the number one destination for software development in Europe.

However, because of this heightened demand there’s a shortage of experts and consequently firms are seeking specialists, particularly with SQL, C# and Business Analysis experience.

In terms of tax status, the Irish model borrows heavily from the UK, but they’re not completely identical so care must be taken. Contractors should be made aware that the Irish tax year is the calendar year and all tax returns must be filed by October 31^st of the following year.

Bulgaria

Similar to Ireland, Bulgaria has also become a destination of choice for many Western based businesses as a new IT outsourcing hotspot with its 80,000 jobs in the sector amounting to roughly 10% of the country’s GDP.

While there’s a dearth of IT specialists in the UK, the Bulgarian market is well stocked, at least at the lower-mid level, however there is a shortage of senior level experts so professionals with experience of project management and leading projects from the front are likely to receive a number of job offers. The country is also benefitting from the perilous situation in Greece. 

Operating in Bulgaria is relatively straightforward with both personal and corporation tax currently standing at 10%. However, social security costs are higher than in the UK which can be costly for professionals utilising a limited company or Bulgarian umbrella.

UAE

The majority of the demand for IT specialists in this part of the world stems from the huge number of ongoing major infrastructure and transport programmes. Leading the way are the enormous Riyadh Metro, the Dubai Expo 2020 and Qatar World Cup 2022 projects.

Historically, these may not have required the services of IT specialists; however the spread of technology has meant that they are being sought after in huge numbers to lead the digital side of these developments. While the UAE doesn’t struggle to source technical workers, like Bulgaria it suffers from a lack of senior and managerial level talent, so agencies placing these professionals may find it a highly lucrative area.

However, it goes without saying that contractors working in this part of the world must be advised to pay respect to local cultural and religious protocol.

Switzerland

Switzerland isn’t an easy place to operate or to place contractors because of the overly complex labour and tax laws. The country is made up of 26 cantons, each of which has different regulations to manage and understand. Despite this, and the recent and much disputed vote against mass immigration, the country has continued to register strong demand for experts.

This is partly due to the robust and healthy economy which is able to withstand market pressures but also because of the many major businesses based in the region which are pumping money into their coffers. Consequently, opportunities are widespread, particularly for senior level professionals.

Nigeria

Nigeria is home to a thriving start up community which has meant that a considerable number of early stage businesses have popped up over the past decade. As these firms mature, many have sought the specialist IT skills that aren’t readily available domestically which has meant a greater desire for UK based contractors.

Nigeria is certainly an interesting place to operate and a combination of the national culture, the climate and the often chaotic infrastructure means there’s unlikely to be a dull moment when working here. However, there are challenges and it can be difficult to obtain a resident’s permit, especially if the contractors you’re placing have a short timeframe before starting their contract.

It’s also worth advising professionals to consider taking out a kidnap and ransom policy – as however unlikely this may be, it’s better to be safe than sorry. It’s also worth advising them to keep a close eye on the domestic economy before committing to a role as it has shown signs of a downturn in recent months.

Michelle Reilly is managing director of CXC Global