Web 2.0 whipping up a developer frenzy

Web developers are trousering a lot more cash thanks to the popularity of web 2.0 sites.

Hot social networking properties such as Facebook and MySpace - along with the wider ecommerce boom - are whipping up demand for web skills, pushing developers' pay up 26 per cent in the past 12 months, according to research by SkillsMarket/ATSCo (Association of Technology Staffing Companies).

The frenzy around third-party apps on Facebook, which recently opened itself up to developers, is one example of a zeitgeist web 2.0 property being mined by developers. But demand is not just being driven by web users - the rise of online business applications is also playing a part, said SkillsMarket.

Alex Charles, founder and product director of SkillsMarket, said in a statement: "Over the last year we have also seen a dramatic transfer in B2B applications to the web. This has been the result of new technologies such as Ajax, which has enabled functionally rich applications to be moved online. Typical examples include contact management and email systems."

A strong focus on ecommerce investment by retailers - currently outstripping IT investment by all other sectors of the economy - is also boosting demand, ATSCo said.

Web developers are now among the most sought-after IT professionals in the UK - average hourly rates stand at £29, up from £23 this time last year - to the point where businesses seeking to secure skilled staff are engaging in bidding wars.

Ann Swain, chief executive of ATSCo, said in a statement: "Companies are being forced to offer large incentives to get people onboard because with so few skilled IT graduates entering the marketplace, poaching from rivals is becoming a necessity. But employees in these companies have seen their share options become hugely valuable and will only move for big money increases."

Another factor driving demand is undersupply, according to ATSCo - a result of fewer IT graduates filtering into the job market in the wake of the dot-com crash. This shortage means developers' pay rates are likely to continue their upward trend, it added.