Businesses lean more on contract hires amidst cost pressures
Hiring volumes remained stagnant in 2024 as businesses dealt with rising operational costs and wages, while tech startups saw less funding as investors maintained a conservative stance throughout the year. Furthermore, rising rents have also contributed to cost-of-living pressures, pushing some foreign tech talent to leave and migrate to other locations.
“Before, the banking and finance industry drove much of the demand for tech professionals. Of late they have slowed down hiring in Singapore and looked to offshore some roles to alternative locations like India, Thailand, Dubai and other Southeast Asian countries,” observes Faiz Modak, Associate Director at Robert Walters Singapore.
Nevertheless, demand for talent remains robust in areas like cyber security, software engineering, artificial intelligence (AI) and digital transformation.
Read on to find out more about Faiz’s expectations of the labour market and hiring trends for Tech & Transformation professionals in Singapore in 2025, specifically for contract positions.
Companies find ways to lower costs, increase revenues
Cost effectiveness remains top of mind for businesses heading into 2025. As such, Faiz anticipates that companies will continue their approach of offshoring certain positions to lower cost locations. Functions and roles deemed less critical may also be consolidated to reduce costs.
Conversely, Faiz expects that some firms will broaden the roles within their current workforce, adding new responsibilities to existing remits. “While this can lead to increased workloads, it will also provide growth opportunities for some individuals,” he notes.
Tech contracts will also continue to be popular in the year ahead as companies explore alternatives to build a flexible workforce that supports their permanent operations. This model can help firms better manage their headcounts and free up existing business partner functions like human resources (HR), finance and payroll to focus on productivity and top-line growth.
Especially with the implementation of the new points-based, COMPASS framework, Faiz believes companies will continue to prioritise hiring local talent. There will also be sustained demand for senior talent with proven experience in driving top-line revenue.
Lastly, businesses will continue to invest in, and seek out talent in fields such as AI, data engineering, cyber security and digital transformation.
International, hands-on experience a plus
Across the industry, there is consistent demand for candidates who are hands-on, technical, and a functional understanding of business domains. The same goes for candidates with experience in the latest technologies. Those who have experience in an international environment will also have a competitive edge.
In the year ahead, the most popular roles will be data scientists, data analysts, cyber security specialists and software engineers. Skills associated with these roles will thus be in high demand.
More openness towards contract roles
Candidates may be unnerved by the waves of layoffs hitting the industry, but many are also keeping their eyes primed for opportunities on the market to avoid being caught off guard. Faiz notes that candidates are now more open to contract positions, with some even weighing long-term contracts and permanent roles equally if salary and benefits are aligned.
The emphasis on work-life balance has prevailed since the pandemic era, and employees have continued to prioritise hybrid work arrangements. Other factors that appeal include work culture, growth opportunities and job stability.
To stand out in the market, Faiz advises candidates to upskill and stay up-to-date on the latest technology trends.
With the advent of AI and machine learning, there is a fear that jobs will be replaced. However, the industry also believes that technology can be an enabler. Early adopters who are quick to learn and pick up new skills are always sought after.
Create a supportive environment for employees
Candidate motivations have shifted following the post-pandemic recovery. In addition to competitive compensation, many are also after job security, work-life balance and learning opportunities – all areas that Faiz believes companies should account for when looking to attract and retain talent.
“Besides restructuring their compensation and benefits package, many businesses now invest in training programs, mental wellbeing, and diversity and inclusion initiatives. They understand that creating an environment that fosters healthy work-life balance is key to keeping employees engaged and loyal,” he says.
Salaries to go up
Job movers can expect salaries to increase by 10 – 15%.
On the other hand, professionals staying put in their existing companies will likely receive annual increments between 4 – 5%, as companies look to match inflation and rising costs of living. As Faiz explains, “Front-office business functions, and roles that are business-critical or revenue-generating can still expect a higher increment.”
Find out more
Request access to our 2025 Salary Survey to benchmark salaries and to find out more about key hiring trends for Tech & Transformation contract professionals in Singapore.
