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How is the 2025 IT & digital job market looking so far?

February 2, 2025

As we wrap up the first month of 2025 what have our experts learned?


Peoplebank Account Manager Elizabeth Fairweather shares her thoughts and predicts the trends to come


Peoplebank Account Manager Elizabeth Fairweather

As 2025 gets underway, there's a sense of cautious optimism following the IT market slump of 2024.


Many industry observers are eagerly watching to see what this year will bring. While early signs are positive, there are still areas of the market that remain unstable. Offshoring continues to be a significant concern, with roles that were once considered secure increasingly being outsourced. On top of this, the impact of AI cannot be overlooked. Yet, despite these challenges, there are clear signs of growth, with new programs receiving approval, heavy investments in projects, and exciting developments in the pipeline.


I believe this growth, despite the ongoing offshoring trend, is indicative of the IT sector expanding as a whole. According to a recent report by leading analyst firm Gartner, IT spending in Australia is projected to reach AU$146.85 billion in 2025—an impressive 8.7% increase from the previous year. This surge is being driven by substantial investments in key sectors such as software, IT services, and data centre systems, with a particular emphasis on emerging technologies like generative AI (GenAI) and cybersecurity.


Looking back, 2024 was a year focused on operational improvements, integration, and data. But what can we expect in 2025?

Innovation is set to be the key theme of the year. Many companies spent 2024 reinforcing their internal IT infrastructures, waiting for the opportunity to make significant advancements in 2025. With a strong emphasis on improving data quality in 2024, many businesses are now positioned to take a more strategic approach to AI, unlocking the full potential of their data. Cybersecurity remains a top priority, especially with shifting power dynamics in the US, growing global uncertainties, and the growing number of data breaches in recent years. As a result, businesses are placing greater focus on safeguarding their operations.


The software market is undergoing rapid transformation, becoming increasingly competitive and a key driver of innovation. To stay ahead of the technological curve, more companies are turning to off-the-shelf applications and cloud platforms. These solutions not only offer cost-effective and scalable options but also enable businesses to quickly leverage cutting-edge technologies, streamline operations, and improve overall efficiency. As a result, adopting these platforms has become a strategic move for companies looking to maintain a competitive edge in a fast-paced digital landscape.


While many sectors are tightening their belts, the IT industry is taking a different approach. Australian businesses are recognising technology not as an expense to be cut, but as a critical investment for long-term success. Rather than scaling back, companies are embracing digital advancements to enhance efficiency and secure a competitive edge. This growing focus on digital transformation highlights how businesses are positioning themselves for sustainable growth by adopting innovative technologies that streamline operations and prepare them for future challenges.


Bring on 2025!



Sources:




By Mimi Petrakis February 28, 2025
As the IT & digital industry continues to evolve, staying informed on salary trends and employment dynamics is crucial for both professionals and businesses. Last month, Peoplebank’s highly anticipated February 2025 Salary Guide was released, offering comprehensive salary insights, job market analysis , and hiring trends to help you navigate the ever-changing landscape of IT & digital employment in Australia. Key Insights from the Peoplebank Salary Guide 2025 Our latest salary guide delivered state-by-state salary benchmarks for various IT & digital roles, providing clarity for job seekers, hiring managers, and industry leaders. It also includes expert insights from Peoplebank specialists, highlighting the latest employment trends shaping the industry. “Our Salary Guide reflects the major challenges and opportunities within the dynamic IT & digital industry. The guide serves as a critical resource for stakeholders, providing insights into commercial realities as the year begins and empowering both talent managers and IT & digital professionals to make informed strategic decisions aligned with the current market.” Tim Moran, Executive General Manager, Peoplebank and Leaders IT What’s Trending in the IT & Digital Job Market? Job Market Stability : The number of professionals changing jobs has continued to decline since 2024, with a rise in job tenure. This suggests a growing emphasis on job security and long-term career planning in the IT sector. Contractor Rates & Permanent Roles : A softening of contractor rates indicates a shift in preference towards permanent employment, reflecting a changing job market dynamic. Talent Development Focus : Companies are prioritising in-house talent development , tailoring skills to meet their specific organisational needs rather than solely relying on external hires. Most In-Demand Roles : Software Engineers are in high demand as businesses invest in AI, automation, and cloud-based solutions to accelerate digital transformation. Solutions Architects are increasingly sought after to design scalable, efficient, and secure IT infrastructures that support evolving business needs. Download the Full Salary Guide Understanding salary trends, hiring patterns, and emerging job market shifts can give you a competitive edge—whether you’re an IT professional planning your next career move or a business seeking top digital talent. Download the full Peoplebank Salary Guide now to access the latest insights and ensure you're staying ahead in the IT & digital industry.
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