The IT sector continues to be shaped by rapid technological change, skills scarcity and shifting approaches to workforce planning. This 2026 Salary Guide benchmarks market activity from 2025, highlighting in-demand IT skills, current salary ranges and how organisations are balancing permanent and flexible resourcing to meet project and business demands across Ireland.

IT Job Market Outlook 2026: AI Adoption, Skills Scarcity and Evolving Hiring Models

Measured Growth in Salaries

 Overall, permanent IT salaries are tracking with inflation, a more measured pace than in previous years. However, specialized niche roles within AI/Machine Learning, Data Science, Cloud Architecture, and Cybersecurity are seeing much higher demand, and we expect them to command an 8-10% increase in 2026. The salary differential for regional roles outside of Dublin remains 5-10% lower, while fully remote roles can see a 10+% differential as candidates are more flexible on salary.

After a modest correction in 2025, the IT contracting market remains robust, with average day rates for IT specialists holding strong at an average of €632 per day. While overall rates are expected to stay stable, proven specialists in high-impact areas like AI/ML, data engineering, and cloud DevOps will continue to command premium daily rates.

High Demand for AI, Data, and Cloud

The need for IT professionals with expertise in AI, machine learning, and data science continues to grow, driven by the adoption of generative AI and advanced analytics. Alongside this, Cloud computing (AWS, Azure, GCP) and DevOps skills are increasingly essential. AI remains the headline theme driving contractor demand, with specialists who can leverage it as a force multiplier to streamline delivery being highly sought after. We are also seeing rising interest in niche areas like Green Tech, edge computing, and IoT. Key sectors driving IT hiring include finance, medtech, utilities, and digital transformation initiatives.

The Rise of the "Hybrid Developer"

Employers are increasingly seeking versatile candidates who can combine development, operations, and data capabilities. We are seeing clients prioritise professionals with end-to-end exposure, those who can pivot across frontend, backend, and cloud, while supporting DevOps and automation workflows. Traditional single-language roles are being replaced by "hybrid developers" who can deliver across multiple layers of the stack, allowing teams to stay lean while maintaining delivery speed.

The Hybrid Shift and In-Office Pull

While remote and hybrid work arrangements are still widely available, particularly for specialist technical roles, we are seeing a clear pull-back from large, global MNCs. These companies are increasingly mandating employees return to the office 3+ days per week. This is creating a divergence in the market, as flexible work options remain a key tool for other firms to attract talent from across the country and beyond.

Persistent Shortages and Regulatory Demand

Ireland continues to face a significant shortage of skilled IT professionals, especially in AI, cloud, and cybersecurity. Competition for top talent remains strong. This is compounded by the need for staff who understand evolving regulations, such as GDPR compliance and new AI governance frameworks. As a result, professionals and contractors experienced in cloud security, compliance automation, and risk management remain in high demand.

Strategic Growth of the Contract Market

With permanent hiring budgets under pressure, more companies are turning to fixed-term, temp, and daily-rate contracts as a flexible way to access niche skills quickly. We are seeing a high percentage of tech employers (over 70%) who expect to increase contract engagement in 2026, reinforcing this model as a long-term workforce strategy, particularly for short-term projects and digital transformation initiatives.