Salaries for IT professionals specialising in big data have increased by almost 8% in one year, according to the latest Tech Cities Job Watch report, from the ManpowerGroup’s Experis Division.

The report shows that the growth of big data and the Internet of Things is fuelling the salary rises. Big data and the Internet of Things is predicted to add £322 billion to the UK economy within four years.

The report, a tracker of 60,513 UK IT jobs advertised (across the five key technology disciplines: Big Data, Cloud, IT Security, Mobile and Web Development) in Q1 2016, reveals that 5,148 big data jobs were advertised in the last quarter, with 87% of these being in London. Experis says the big data industry is thriving, as businesses realise the benefits of using personal data to better understand customers and predict future trends.

Compliance is another factor contributing to this surge. The new EU Data Protection Regulation is forcing organisations to bring big data and compliance skills in-house, given the penalties if they are found in breach of the regulation.

“Big data will continue to be a major driver of growth in the UK economy as the digital revolution accelerates,” Geoff Smith, Managing Director at Experis, said. “Yet, many companies have been slow to react and there’s a limited talent pool to choose from. Employers are willing to pay highly competitive salaries to attract these experts, so they can help with compliance, uncover valuable customer insights that can transform their business, and innovate for the future.”

The latest figures also show a shift in the proportion of hiring demands outside of London with an annual increase of almost a quarter (23%) in the number of roles advertised across all five disciplines (up to 20,060 from 16,287). Tech Cities across the UK are narrowing the gap on London’s dominance with Manchester, Leeds and Birmingham leading the charge.

“The tech hubs outside of the Capital are growing quickly,” Smith said. “We’re seeing these challenger cities become more and more attractive, as housing, travel and lifestyle costs continue to soar in London and people grow tired of the rat race lifestyle. As such, the likes of Manchester and Leeds, which can offer a better quality of life, are becoming more popular. And with many IT workers struggling with London housing costs, commute times and the high-octane pace of life, it is likely the appeal of other Tech Cities will continue to increase.”

The last quarter also saw a rise in hiring demand for IT security jobs, compared to other job roles (Cloud, Mobile and Web Development). Businesses are also willing to pay more for highly skilled cyber security experts to ensure their IT security is robust. This is reflected in the increase of contractor day rates over the last year. Compared to 2015, the average rate increased 19%, the highest across all five sectors (Big Data, Cloud, IT Security, Mobile and Web Development), to £481.