We’ve compiled a list of your most frequently asked questions for Andy, a London-based independent agency IT recruiter with 10 years’ experience in the contractor space, specialising in Software Engineering, Data, and DevOps roles across Europe. In this Q&A, Andy shares insights on the current state of the IT contractor market in 2025, offering candid advice based on his extensive experience.

Q: How is the IT contractor market looking in 2025, particularly for roles like DevOps, SRE, and Data Engineering?

Andy: The market is challenging at the moment and has been since around 2023. For DevOps, SRE, and operability roles, the outside IR35 market is particularly weak. Data engineering sees some demand, especially for those with niche skills in areas like SAP, commodities, or specialised SCADA systems (e.g., nuclear power or water treatment). However, broader roles like Delivery Managers, Project Managers, and Scrum Masters are struggling, with fewer opportunities available. There are some signs of recovery with more roles emerging, but they’re taking a long time to finalise.

Q: What are the most in-demand skills or roles right now?

Andy: AI-related roles are the most sought-after due to the current AI boom, with many candidates trying to transition into AI/ML engineering. Beyond that, niche areas like SAP and specialised SCADA systems are less saturated and in demand. For data engineering, candidates with deep domain knowledge—such as expertise in financial services (e.g., derivatives)—are highly attractive to clients, though such matches are rare. For DevOps, skills in specific platforms or tools tailored to a client’s stack are crucial, but overall demand is low.

Q: How do day rates and market conditions compare across Europe?

Andy: Day rates in southern Europe are significantly lower than in Benelux, DACH (Germany, Austria, Switzerland), or Nordic countries. Fully remote contracts from Europe for UK contractors are rare, though I’ve placed a couple of candidates with a client in Spain. In the UK, rates are under pressure due to factors like new National Insurance increases and Employer’s NI contributions, which clients often don’t fully account for when setting rates.

Q: Why do recruiters sometimes ghost candidates or call without a specific job in mind?

Andy: Ghosting often stems from a lack of courtesy or poor organisation - some recruiters are simply bad at following up. Calls without a job spec are usually fishing expeditions for market intelligence or leads, such as finding out where you’re interviewing or if your current employer is hiring. This is a common business development tactic, but most recruiters aren’t great at it, which is why it can feel frustrating or deceptive.

Q: How can contractors negotiate better rates, especially for IR35 roles?

Andy: Always ask for the rate upfront to avoid wasting time on calls where the budget doesn’t align. For IR35 roles, renegotiation is possible, particularly if the client wants to extend beyond the initial term (e.g., 6 months). Your leverage depends on your value to the client - highlight your impact and the cost of replacing you. For example, if you’re offered £500/day, the agency typically takes a 20% margin (£100/day), so there’s some room to negotiate, but don’t push too aggressively if the client is committed long-term.

Q: How do recruiters source candidates, and what makes a good CV?

Andy: I mainly use LinkedIn and my company’s CRM database, running Boolean searches to find relevant CVs. I don’t use automated CV parsing tools - manual review is still key. A good CV has a clear layout, no unnecessary filler, and clearly showcases technical skills and the value you’ve delivered. For contractors transitioning from permanent roles, there’s no need to tailor your CV differently - just focus on clarity and impact. Multiple CVs tailored to different skills can work, but ensure they’re truthful and stored consistently in a CRM to avoid confusion.

Q: Is an active LinkedIn profile or personal branding important?

Andy: Not really. An active LinkedIn profile isn’t essential for sourcing candidates, and personal branding - while hyped by some - doesn’t significantly influence hiring decisions in my experience. A blank or inactive LinkedIn profile won’t harm your chances, as long as your CV is strong and accessible through other channels like a recruiter’s CRM.

Q: How can someone with limited tech experience or a non-traditional background break into the industry?

Andy: For someone with a degree but limited tech experience, such as in data analytics, focus on tailoring your CV to highlight relevant skills (e.g., Python) and any small-scale work experience. Apply widely and don’t rely solely on cold applications - get your CV into recruiters’ hands through networks or direct outreach. For recent graduates, a Computer Science degree gives a slight advantage, but practical skills and persistence matter more. Q4 and Q1 are typically the busiest hiring periods, so time your efforts accordingly.

Q: What challenges do recruiters face, and how can candidates work effectively with them?

Andy: The toughest part of recruiting is business development - securing new clients and getting onto their approved agency lists. Candidates can work better with recruiters by being upfront about their rate expectations and availability. Avoid engaging with recruiters who post vague job adverts without key details like rates, location, or IR35 status, as these are often CV-harvesting schemes. If you’re aiming for seniority or higher pay, focus on niche skills rather than broadening your skillset, as specialised roles tend to command better rates in a tough market.

Q: How can someone set up their own recruitment agency?

Andy: Setting up a recruitment agency is like starting any business - research the legal and operational steps thoroughly. The biggest challenge is building a client base, as finding candidates is relatively easy in the current market. It’s worth it if you’re money-motivated and skilled at sales. Some agencies started post-Covid are doing very well, but success depends on your market, work ethic, and ability to stand out.

Q: Any tips for contractors navigating a quiet market or transitioning from permanent roles?

Andy: The market has been quiet since 2023, with summer periods (especially in the UK and Nordics) being particularly slow. For those moving from permanent to contract work, research your financial situation and prepare for potential unemployment gaps. If you’re set on contracting, consider specialising in niche skills to stand out, as broad roles like Scrum Master or Business Analyst are oversaturated. For UK-based contractors seeking remote or international roles, opportunities exist but are limited - check platforms like LinkedIn and leverage recruiter networks.

Have more questions about the IT contractor market? Visit findcontractjobs.com to explore opportunities and connect with recruiters like Andy.