The demand for IT contractors in the public sector has declined, according to Keith Butler, managing director at IT recruiter NES IT.

Butler told Recruiter: “The focus is on cost-cutting, therefore demand for contractors is lower than is has been in the past. With clients emphasising cost, there’s increased pressure on rates and agency margins and more justification is required (often at a more senior level) for each appointment or contract extension.

“However, this is being balanced by an increase in hiring activity (contract and permanent) in the private sector, particularly banking / finance and services.”

For more from Keith Butler, see Recruiter’s IT and telecom sector focus, out today (31 March).