The IT sector had a strong end to 2006, with permanent and contract placements continuing to rise, according to IT recruiter Computer People’s analysis of the UK contract and permanent job market for Q4 2006.

It found that the average salary for IT professionals has reached new heights, with demand at its highest levels since the dotcom boom of 2000.

Salaries in regions outside of London are now almost level with those paid in the capital, the UK IT sector is expanding up to three times faster in the regions other than London, it found.

Computer People says demand for people with project management and architecture experience has increased significantly.

The current trend of off-shoring lower level support roles looks set to increase, it adds. Developers and PC support engineers are the most vulnerable group to be outsourced as employees with business skills are much better placed than those with technical skills only.