We have produced an assessment of the benefits of becoming an IT contractor in 2003, and of the disadvantages. See our post ‘Ten Positive aspects of Being a Contractor’ which we are re-publishing as a comparison. You can make a judgment on which outweighs the other.
1. Rates have fallen and could mot go up a lot soon as there is nonetheless a glut of IT contractors compared to the member of jobs accessible. The gap in the number of contractors and jobs accessible will take a whilst to close
two. A lot more and more jobs are being outsourced to India and other offshore nations where nicely skilled IT workers can be paid less than $ 10,000 a year
3. Around 30,000 non-EU IT workers have come into the UK in the last couple of years on Rapidly Track Visas. They are allowed to keep for 5 years, and this has added to the glut of IT workers accessible in the country. Despite the fact that the Government have stopped letting men and women in through this route, they have only suspended the scheme, and if there is any sign of a shortage in the market place again, e.g. if rates start off rising, then they can just commence importing non-EU IT workers once more. Rest assured that there will be a lot of pressure from UK businesses to be allowed to do it
four. With the advent of IR35 there is not the tax benefits that there have been in contracting. It lessens the differential amongst getting permanent and contract. Even if a single feels that one’s contract is outside IR35, there is constantly the be concerned that the Inland Income will determine that it is, and that you are going to get a sudden demand for a big sum of cash
5. The develop element of the development lifecycle is becoming a smaller sized and smaller portion of the development lifecycle, with the advent of far more effective languages and tools. Businesses choose to have their company analysts in-house, so there will be significantly less straight programming jobs in the future – which is exactly where contractors have normally specialised
six. The IT sector, and consequently the numbers of folks recruited for it, has turn out to be increasingly cyclical. Despite the fact that there will often be boom times, contractors can count on to have a lengthy period out of work as soon as each 5-ten years where they can not discover anything, their cash runs out, their houses and vehicles are re-possessed and their partners leave them. If you are content for this to occur after or twice a decade then contracting truly is for you
7. At each client internet site that you perform there will be individuals who will dislike you, just because you are a contractor, partly since of jealousy and partly since you are a short-term interloper from ‘outside the tribe’
eight. You can not rely on getting capable to operate close to house the way permies can. A fair portion of your day might be spent traveling so that you are continually knackered. You may even have to devote some contracts away from residence, and away from household and buddies. This gets a bit wearing right after a whilst, specifically as you know you could get a permie job at the place just down the road, a quick drive away, and you could see a lot of your household and buddies and not be so knackered all the time. If you perform away from residence for a handful of contracts on the trot you may find your household beginning to resent you coming property at the weekends and upsetting their typical household life, in spite of the reality that you dislike operating away from residence, but you do it to bring in the money to let them to have that life
9. You are capable to make long term relationships with the folks that you perform with, rather of generating friends and losing them every single 3 to six months. You constantly say that you’ll stay in touch, but circumstances don’t enable it. How numerous great people have you worked with in the past with whom you are no longer in touch?
ten. The funds differential is very good in the starting in between you and permanent workers, but as the years go on, and you stay low down on the ladder, you will find yourself becoming interviewed for development jobs by IT managers, directors and CIO’s who you employed to function with years ago, and who you perhaps trained. The good factor is that they’ll probably give you the contract just to reinforce their own sense of effectively-becoming on a day-to-day basis. As you get a bit older nonetheless, you hear of your ex-colleagues retiring early on full pensions and with bagfuls of share possibilities, just as you have, when once more, lost everything in the latest severe downturn