The tech job market experienced a boom during the COVID-19 pandemic due to rapid digitisation and remote work and has since travelled in a very different direction.
Post-pandemic overinvestment in IT infrastructure, coupled with economic challenges like high inflation, rising interest rates and political uncertainty, has slowed job growth. By late 2024, many companies adopted a cautious ‘wait and see’ strategy, delaying large-scale hiring and transformation efforts. But how is it progressing?
Well, new research from Reed has revealed that advertised salaries in the infrastructure and security sector have seen a 1.2% decrease over the past year – the only sector in the technology industry to see a dip.
In this article, Michele Smith, Managing Director of Reed’s technology division, provides an overview of this sector and the key considerations businesses in this area need to bear in mind.
Change in demand
Throughout 2024, the infrastructure and security job markets highlighted their divergence, signalling the growing specialisation within these domains. Cyber security, in particular, experienced remarkable growth as escalating security threats and stricter regulations drove demand for expertise. High-impact roles, such as cyber security consultants and information security managers, commanded premium salaries with demand far outpacing the available talent pool.
For many organisations, securing their first hires in these critical areas proved challenging. As a result, businesses frequently turned to managed service providers to address immediate needs while gradually developing internal teams over time. Cyber security professionals, meanwhile, placed significant value on flexibility, remote work options and ongoing training opportunities. However, a noticeable decline in formal development programmes offered by employers in 2024 created barriers to talent mobility, leaving some professionals seeking greater growth opportunities elsewhere.
Infrastructure hiring showcased notable stability in first- and second-line IT support roles in 2024, with a balanced supply and demand dynamic. However, skills shortages eventually became evident in third-line positions and infrastructure engineering, particularly in specialised areas like VMware, storage solutions and Azure. Professionals with expertise in these fields enjoyed competitive compensation, leaving companies offering market-average salaries at a disadvantage in attracting top-tier talent.
To address these shortages, some organisations shifted strategies, opting to hire less experienced candidates and invest in training programmes to cultivate the required skills internally. While the overall demand for infrastructure roles steadied following the COVID-19-driven surge, project-based hiring gained traction. Companies consistently pursued skilled professionals for initiatives aimed at cost reduction and profitability, highlighting the sustained demand for expertise in infrastructure to power business-critical transformations.
This up-and-down uncertainty has been reflected in salary inflation across the nation. The roles that saw the biggest decrease in average salary across the UK were: DevOps managers (23.6% decrease) and DevOps engineers (12.9% decrease), whereas data governance analysts saw the biggest increase by 12.1%. It’s important to note that this is not the case throughout all regions with spikes varying across different locations.
For example, in the Midlands, head of infrastructure roles saw the biggest salary increase (19.4%) and cyber security managers saw an 8.1% increase. On the other hand, London only saw an average of 2.0% increase in salary for cyber security manager roles and only a 0.3% dip in salary for those in DevOps manager roles.
The challenges and how to respond
This year, hiring priorities in infrastructure and security are expected to centre around project-driven roles, natural attrition replacements and positions directly linked to cost-saving initiatives. To address skill gaps without committing to long-term internal hires, businesses are likely to turn to consultancy services. Fixed-term contracts may also see greater adoption as organisations look to maintain operational agility amid economic uncertainty.
For the cyber security sector, the fast-paced evolution of technology complicates efforts to retain top talent. While salary increases have enhanced competitiveness, employers must take a broader approach to meet expectations, and, as we can see, the salaries haven’t inflated as much as previous years. Professionals aren’t solely motivated by compensation; they’re drawn to meaningful, engaging project work, hybrid work models and comprehensive rewards packages that promote their well-being and align with their lifestyle priorities. By prioritising training, development and the overall employee experience, companies can stay ahead of industry challenges, ensuring they not only attract but also retain the best in the field.
Adding slightly more fuel to the fire is that employers currently hold more bargaining power, so the potential for a market rebound later in 2025 could lead to increased candidate mobility. As a result, many professionals are cautiously staying in their roles due to the uncertain market but remain open to new opportunities. If job volumes recover, companies may encounter an uptick in resignations and heightened competition over salaries.
Hybrid working has solidified its place as the standard across the cyber security and infrastructure sectors, with fully remote roles becoming increasingly rare. Professionals in these fields now seek hybrid arrangements that balance flexibility with office presence, typically requiring one to three days onsite. However, junior roles more often demand frequent in-office work. Despite the preference for flexible schedules, many companies are placing a renewed emphasis on in-person collaboration, believing it fosters stronger stakeholder communication and enhances project execution.
To maintain their workforce, especially for those that are reluctant in returning to the office, businesses will need to look beyond simple financial incentives. Although hybrid and flexible working arrangements have become indispensable for employees, a supportive company culture, balanced work life and opportunities for professional growth are equally vital. By investing in learning and development, particularly in cutting-edge areas like AI and process automation, organisations can create an environment where employees feel empowered and valued. When individuals feel supported in advancing their careers, they’re far more likely to remain loyal, even in a competitive job landscape.
The key takeaway
Despite its current challenges, the technology labour market remains a dynamic and essential part of the global economy, offering both organisations and professionals significant opportunities for growth and transformation.
As we continue down 2025, the market is set to evolve, with a growing focus on emerging skills and new roles. Organisations that prioritise innovation, foster continuous upskilling and remain agile in meeting shifting employee expectations will position themselves for sustained success. While economic uncertainties may continue to shape hiring decisions, demand for tech talent remains strong, particularly in critical domains such as cyber security.
Employers face the delicate task of balancing short-term cost efficiencies with long-term strategic ambitions, ensuring they can attract and retain the best people. For technology professionals, staying competitive in this dynamic landscape will demand an unwavering commitment to lifelong learning and adaptability.
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