The UK is performing well at drawing in foreign investors, which could create new opportunities for IT contractors.

Tony Dolphin, senior economist at the Institute for Public Policy Research, said that there are a number of key areas which improve Britain's attractiveness.

Low corporate tax rates, government policy and the language are all advantages which have led to jobs for IT contractors, he suggested.

While he acknowledged that this trend has been hit by the recession, he suggested that it will pick up again following the onset of recovery.

Mr Dolphin highlighted the UK's need to remain competitive in order to draw in the talent necessary to make it competitive.

He added that the country has done a good job and will be able to return to its pre-recession status.

Stephen Timms, financial secretary, recently announced that the government is modernising its rules on controlled foreign companies in order to retain its competitiveness.