Investment banks might be putting their IT hiring plans on ice, but third-party vendors are looking to take on people by the bucket-load.

Shrinking IT budgets in investment banks mean that third-party vendor systems are the cheaper alternative to building new systems in-house, and business is booming.

For a start, the appetite from the sellside for low-cost smart-order routing systems has swelled. There’s also the buyside’s increasing need for derivatives automation. And a surge in interest in event-driven processing, risk management solutions and commodities and energy software is boosting business at firms like Openlink and Trayport.

Markit, the dealer-backed post trade and data specialist, has announced that it intends to make six acquisitions this year, and plans to add 200 new staff.

Abigail Waudby, manager within the technology division at recruiters Project Partners, says vendors are looking for project managers and business analysts, developers, and implementation consultants, which pay £40k-£70k, £40k-£60k, and £50k-£75k respectively.

But with vendor salaries coming in significantly lower than those in investment banks (and with less bonus potential), why would you want to work for one?

Simon Masters, head of recruitment for Trayport, says: “There’s less stringent segregation and hierarchy within a vendor. We allow people to get involved in other areas of the business while still focusing on their key skills. Moving to revenue generating areas, for instance, is less of a jump than in an investment bank.”

But Waudby says vendors aren’t naïve enough to try and poach talent from i-banks: “Generally, they’ll look for vendor experience, or technical knowledge gained in other industry sectors. They want bright, strong technologists with the ability to get up to speed with financial services quickly.”