David Shanahan discusses the tech recruitment landscape and the trends dictating the sector.
When it comes to the technology recruitment space, it has been a difficult year with the significant layoffs from major organisations dominating much of the conversation. However, according to David Shanahan, a director at Irish recruitment agency IT Search, the recruitment sector at the midpoint of 2025 can be characterised by “cautious optimism”.
“Redundancy announcements are still unfortunately commonplace and certain industries will take some time to recover,” he told SiliconRepublic.com. “However, the demand for niche tech skills remains strong overall, particularly in the start-up and SME scene.”
Out with the old?
Shanahan noted that the biggest trend throughout 2025, when it comes to the wider tech recruitment landscape, is the significant increase in the contract market, which has now returned to pre-pandemic levels.
“Historically the contract market is a good precursor of the permanent market. 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.”
He explained that the shift from the more traditional recruitment methods, to a preference for IT contracting, is multi-factored, with one such reason being the faster time-to-hire effect. That is to say that businesses have the power and the resources to scale their teams up or down based on project demands. Additionally, it makes for easier budget approval and employers have access to diverse and niche skillsets.
“Right now, my feeling is that many companies are confident enough to allocate budget but are using contractors as a hedge against adding permanent headcount. This year we have seen a significant uptake in contracted to permanent conversions which would support this,” he said.
Currently, the average contract length in the tech sector is roughly around 15 months, which for Shanahan indicates that, in addition to being used for specific, project-based work, they have a role to play in mid-length planning strategies, leading to a reduction in the need for shorter contracts of six months or less.
“As AI adoption continues to expand across industries such as the financial services, healthcare, manufacturing and retail, candidates who can combine AI expertise with specific industry knowledge are in particularly high demand. Contractor daily rates have seen modest increases in the last 12 months, with roles in AI, cybersecurity and data science at a premium.”
Trendy upskilling
Looking to the future, Shanahan is of the opinion that while there may be little change in some areas, organisations are going to be impacted by a number of key trends.
“My feeling is that until the macroeconomic situation stabilises, the remainder of 2025 will be largely the same.
“The three core trends for 2025 will continue to be a strong focus on AI talent particularly within non-tech industries, such as finance and healthcare. EU regulations like the AI Act, NIS2 and DORA will push demand for skills in cybersecurity, compliance and AI audit, and a focus on staff retention, with companies investing more in training, upskilling and internal mobility.”
AI has been heavily criticised for its potential to reduce and eliminate the role of humans in almost every sector and certainly, the technology space is among them, however, according to Shanahan, AI is no replacement for an IT recruiter with niche skills. Rather it is a chance for those professionals to leverage learning opportunities and “outcompete others”.
“Top recruiters should be strategic advisors who can develop and nurture relationships,” Shanahan said.
“They should have in-depth knowledge of their markets, skills and trends, and be adept at authentically presenting a company’s mission, culture and growth plans. I think as AI continues to automate the recruitment process, the need for a human sounding board with real emotional intelligence will also increase.”
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