More IT contractors work in the UK Public Sector than the Financial Services industry.

A survey by the Giant Group, found that only 8% of IT contractors were without work for more than 90 days. The boom in Public Sector work has kep the IT contracting market alive. At the bottom of the slump following the dotcom bust, it was nearly a quarter.

The driving force behind the boom in Public Sector contracting is the Governments E-government initiative. Huge projects such as the Inland Revenue and the National Health Service have created an insatiable demand for skills.

Contracting industry insiders, however are predicting a rise in the rates paid by the Government as IT in general picks up.