Day rates for IT contractors working in the City have risen by a fifth since 2009, according to research from recruitment agency, Clarity Resourcing.

The report attributed the rate rise to a skills shortage regulatory compliance, coupled to renewed financial services investment. Clarity said IT contractors were hit hard by the budget and project cuts that came with the recession

Clarity’s managing director, Adam Sztuka, said that organisations should keep a closer eye on market rates in order to attract the best talent.

"Contractors should also compare their rates against the wider market as even a three percent per day increase over a three month period is a significant pay gap," Sztuke said.

The 20% increase in day rates was an average that was not uniformly spread. ETL and BI developers claimed rate rises of more than 50%, while audit and programme test managers reported a 9% decline.