Hundreds of IT contractors are failing to maximise their pay or ability to work remotely by not updating their skills, a report has said.

Jenrick IT found that more than a third of those in the industry have neglected their talents and accreditations, which in turn means they do not realise their full earnings potential and are "limiting their opportunities".

"Contractors need to be aware of the external environment in which they operate," said Jenrick's managing director Philip Fanthom.

"More and more clients are seeking skill validation, in the form of external recognition through accreditations, as a core part of their initial screening process."

IT contractors can get "sucked in" to their current environment and fail to continue their self development, he added.

With public sector cuts likely to hit IT departments hard, it is more important than ever that those who work in the sector keep up-to-date with the latest developments and ensure they have the skills recruiters want.