Good Contractor Rates
There is one area of the market where we will see good contracting rates in the coming years. That is in the area of Compliance. After the Lehman Brothers shock the Government and EU are implementing a major compliance regime. This will involve lots of IT changes. As most of these are one off one would expect companies to use lots of contractors rather than take on permanent staff. Much of the work will be at the banks. Rates are likely to soar in this sector.
Banks Caused Most Recent Downturn
The banks caused the recent downturn and were nearly responsible for the Great Depression Mark 2.
We were lucky that Governments had learned the lessons of the Great Depression Mark 1 and that was avoided.
The problems had built up since the virtual de-regulation of the financial markets with the rules put in place after the Great depression having been burnt on the altar of laissez faire capitalism.
No Checks on Major Banks Lending
With the checks and balances removed and with the investment banks like Goldman Sachs and Lehman Brothers being able to lend on multiples of 32 times deposits compared to 12 times deposits as before and no rules in place to stop them, the banks gorged and gorged like those fish that can‘t stop eating till they explode.
However, the banks have not been forgiven (even if they have forgiven themselves very quickly) and they will be under more scrutiny in the future.
In fact there is to be a raft of legislation that they are going to have to comply with now. This will affect the insurance companies and finance companies too.
New Opportunity for Good Contractor Rates
So, there are going to be lots of new compliance offers and examiners springing up as well as the legislation and banks and other financial institutions are going to need lots of new compliance software and computer systems to make sure that they comply with it.
And therein lies the new opportunity for those IT Contractors with a knowledge of banking and compliance (or who can get it).
There will obviously not be enough around of those people so there will be opportunities to get into this area.
It seems the number of compliance officers and new computer systems to ensure compliance are going to soar over the next 10 years.
We will see good contractor rates in this sector.
It‘s an ill wind that blows nobody any good.
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