2025 Tech Contract Market Report

The biggest trend we have seen in tech in 2025 has been the significant increase in the contract market. Historically the contract market is a good precursor of the permanent market, and of course, companies choose to make contract hires for many reasons, but right now it seems to be more a strategic bridge between caution and growth until the macroeconomic conditions stabilise.

The average contract length in the tech sector is currently 15 months and broadly speaking daily rates have remained stable. Areas showing most significant demand and improved rates are in AI, cybersecurity and change management.

Below are some highlights from a recent survey of 543 IT contract professionals in Ireland:

Would you take a reduced rate for a fully remote contract as a contractor?

Contactors still tend to enjoy more flexibility with regards to WFH / in-office mandates over permanent staff.

How much downtime did you have between contracts the last time you changed role?

Overall, there is still very little downtime in between contracts with 65% of people either having no downtime at all, or less than 1 month to secure a new role. This is a strong indicator of a buoyant contract industry.

How does your current day rate as a contractor compare to your last permanent salary?

The financial benefits are still making contracting an attractive option. This coupled with easier access to mortgages through specialist brokers is making contracting a more feasible long-term option for people.

AI and Data

AI adoption is continuing to expand across non-tech industries (finance, manufacturing, healthcare, retail etc.), as a result skills with LLM integration, MLOps, and AI Compliance (AI Act) will remain in strong demand.

• Ireland is expected to see a 20-25% year-over-year increase in AI job postings in 2025
• Over 45% of AI-related jobs in Ireland are currently based in Dublin
• 40% of Irish companies report difficulty in sourcing qualified AI talent

Cloud & DevOps

Many businesses are still in the process of migrating to a modern cloud infrastructure to improve operational flexibility and scalability. Candidates with multi-cloud experience are in most demand as Hybrid cloud adoption grows, particularly in industries like finance, healthcare, and government that need strict data controls.

Those employers favouring continued hybrid or fully remote practices have a distinct advantage in securing talent with the hybrid model (two or three days weekly onsite attendance) being the most common.

Cyber Security

EU regulations / directives like NIS2 and DORA are pushing demand for skills in Cybersecurity, Compliance, and AI Audit. The need for talent is pressing for candidates with CISSP, Azure/AWS security certs, NIST/GDPR experience, with an estimated 1,000 new roles to be filled annually to keep pace with demand.

Infrastructure

Cloud workforce continues to grow whilst employers combat the markets’ need for Hybrid working as one of the most significant developments in 2025 is the solidification of hybrid work models.

The 2025 Cloud and Infrastructure market is seeing high demand for AWS, Azure and GCP skilled Engineers and Architects with remote working still at the top of the list for candidates.

Product Management 

Although recruitment across the Product space has been slower in 2025 so far, the growth of “product-first companies” within the AI space, should drive demand for Product Managers with specific AI technical knowledge.

Project Management/Change Professionals

Demand for Project Management/Change professionals is driven by large-scale ERP upgrades, regulatory projects and automation programmes. In particular, the larger consultancy firms are ramping up their headcount for Business Analysts, Change Managers, and Transformation Leads with domain-specific knowledge (e.g. pharma, finance).

Software Development

Most of the contract hiring within Software Development has been in the Java and Python stacks with Java still a mainstay in many of the biggest organisations in Dublin, particularly within financial services, telecoms, and public sector. We’re seeing a lot of the newer startups opting for JavaScript backends, often Nodejs; the demand in this area is gaining momentum.

Testing & Quality Assurance 

Companies are realising that investing in testing isn’t just about catching bugs—it’s about boosting efficiency, improving quality, enhancing security, and keeping customers happy. To stay competitive, they’re putting more resources into testing teams and adopting new strategies.

Key trends driving this change include the use of AI and Machine Learning to predict issues and optimise testing, the growth of continuous testing in DevOps for faster feedback, and a stronger focus on cybersecurity. Cloud-based testing environments are becoming more popular for their flexibility, while mobile testing is evolving to keep up with the expanding range of devices and platforms.

The first half of 2025 has shown encouraging signs for the tech sector, particularly in the contract market, where demand and stability remain strong. As FDI continues to grow and businesses cautiously shift from survival to strategic scaling, we expect hiring momentum to carry through the second half of the year. With AI, cybersecurity, and cloud skills leading the way and contractors enjoying flexibility, competitive rates, and minimal downtime, it’s a dynamic time for tech professionals and employers alike. Please click the links for more information on tech contract FAQs or tech contract jobs or similarly if you have any contract queries please feel free to get in touch with us here!