Demand for independent or freelance technology workers is on the rise.

Skills related to technology implementation and auxiliary disciplines such as project management, digital transformation and strategy consulting are not only seeing big increases in demand, but are also attracting the highest rates for contract workers.

This is according to the Outsized Talent on Demand Report 2024, released last week and which consolidates data from the on-demand skills marketplace’s operations in Africa, India, the Middle East and North Africa, and Southeast Asia.

“Tech-related skills are dominating the demand, as we have witnessed a shift away from an emphasis on design towards implementation projects,” said Johann van Niekerk, CEO for the Africa region at Outsized.

“But it’s not only hardcore coding skills that are highly sought after. Project managers, strategists and risk management professionals are also in demand. The work they are doing is tech focused, but for the projects to be delivered properly, they (companies) need all these peripheral skills.”

Observations by Outsized have led the company to conclude that a spike in implementation projects in South Africa, despite a constrained macroeconomic environment, is driven by companies seeking to maximise operational efficiency and minimise costs. For many companies, Van Niekerk said, the impetus is to “rationalise” technological adoption that has occurred in organisational silos.

Highest paid

According to the report, digital transformation skills are attracting the highest average daily rate (US$392) on the Outsized platform. This is followed by product management ($354), risk management ($339) and technology implementation ($334/day).

For Africa in particular, data-related skills are in demand. Professionals most sought after across the continent include data analysts, data engineers, business intelligence specialists and data scientists.

“What may be surprising is a large number of highly skilled professionals who are at retirement age and want to slow down somewhat but feel they still have a lot to contribute,” said Van Niekerk of the people using the Outsized platform to find work. The digital skills shortage is encouraging companies that find it difficult to source scarce tech talent on a permanent basis to look for these skills in the on-demand market instead.

Read: The programming skills South Africa needs right now

Then there are the highly skilled tech professionals who are transitioning into independent working arrangements as a means of taking control of their careers – by exercising choice in the projects they undertake and the timeframes in which they work for specific companies, preferring project work over permanent employment.

“The permanent market has fundamental problems. It takes 30 days for someone to resign, and the recruitment cycle could take months,” said Van Niekerk.

But the growth in independent working arrangements is not at complete loggerheads with the permanent recruitment market. Instead, contractual arrangements are proving to be useful testing grounds for employers and employees alike, said Van Niekerk, with projects often culminating in permanent offers being made.

On the employer’s side, new skills, positions or functions can be tested without bearing the costs and associated risk of a permanent hire. Similarly, employees can screen a company’s culture and determine if they would make a good fit, and then sign up for a permanent position if they are satisfied.

Read: The IT skills in demand in South Africa

Companies that have geared themselves to non-permanent recruitment procedures are gaining the most from the on-demand talent market, said Van Niekerk. This involves how quickly hiring decisions are made, how soon budgets for new hires are made available, how smooth on-boarding procedures are, and how well independent employees are integrated into the rest of the workforce.

“Time is of the essence in the on-demand market, and companies that take a long time to make decisions often find that the best talent is already on the ground running on another project by the time they respond,” he said. – © 2024 NewsCentral Media