IT Contracting
Discussion
Olivera said:
If that is the case then as a permanent employee you should be on a 6 figure salary yourself. What's the problem?
Id hazard a guess that contractors are paid roughly a third more or double what an equivelent permanant member of staff (perhaps variable on years of service) usually gets if they worked equivelent number of days in year. However a contractor obviously doesnt get paid for holiday leave, there may be periods with no work and sometimes a part of that daily fee has to go to an agency. As stated the problem for me is in the line of work I do, (and this is based on working with various contractors over the last 10 years) that it usually involves lots of commuting and time away in hotels away from family. The majority of jobs on £1000 a day are in London which incurs a whole load more expenses you have to factor in than my permanant employee location 3 miles from my house with 30 days paid holiday year per year. Its not always about the ££$$.CzechItOut said:
Finally, it is unlikely that contractors are on quadruple what you earn, unless you are very underpaid. Look at the daily rates for the roles advertised and assume you work about 44 to 46 weeks a year therefore taking into account bank holidays, leave and other days off. This will give you a realistic indication of your likely income.
- i usually multiply day rate by 220 for an annual base salary, that covers holiday, bank holidays (that you wont be paid) and a few sick days - its a good baselineEdited by XJSJohn on Tuesday 13th March 00:39
When will you know you are ready ?
Book sometime with a recruitment agent, show them your CV and see what they think.
Perhaps try applying for some jobs and see how you get on.
To get £400 to £600 a day you really need to know your stuff (and or show experience).
With regards money - the biggest gap between perm and contracting is atvjunior to mid level roles.
Where as a £40k perm could earn £400 a day (around £88k plus some tax benefits).
Some one senior earning a £200k (base, bonus, LTIP, date, pension, car etc) will do will to get £800 to £1k a day. 5 times the perm rate but only 2 times the contract rate.
So if you want to bag some money - start early.
Book sometime with a recruitment agent, show them your CV and see what they think.
Perhaps try applying for some jobs and see how you get on.
To get £400 to £600 a day you really need to know your stuff (and or show experience).
With regards money - the biggest gap between perm and contracting is atvjunior to mid level roles.
Where as a £40k perm could earn £400 a day (around £88k plus some tax benefits).
Some one senior earning a £200k (base, bonus, LTIP, date, pension, car etc) will do will to get £800 to £1k a day. 5 times the perm rate but only 2 times the contract rate.
So if you want to bag some money - start early.
Silly question but as an it contractor what do you actually create that then generates enough cash to pay you these high wages?
Give us some real life examples.
I ask as my cousins husband is a contract it project manager and on a good wage but he literally knows f
k all about using computers! He can't even figure out how Spotify works or how to do something simple like extend is home WiFi signal. What the fk is he doing at work all day!!??
I consider myself highly skilled in my niche role in the NHS and sometimes wonder if, with a bit of extra training, I could switch into something a lot more lucrative.
Give us some real life examples.
I ask as my cousins husband is a contract it project manager and on a good wage but he literally knows f
k all about using computers! He can't even figure out how Spotify works or how to do something simple like extend is home WiFi signal. What the fk is he doing at work all day!!??I consider myself highly skilled in my niche role in the NHS and sometimes wonder if, with a bit of extra training, I could switch into something a lot more lucrative.
dave_s13 said:
Silly question but as an it contractor what do you actually create that then generates enough cash to pay you these high wages?
Give us some real life examples.
I ask as my cousins husband is a contract it project manager and on a good wage but he literally knows fk all about using computers! He can't even figure out how Spotify works or how to do something simple like extend is home WiFi signal. What the fk is he doing at work all day!!??
I consider myself highly skilled in my niche role in the NHS and sometimes wonder if, with a bit of extra training, I could switch into something a lot more lucrative.
There are currently over two thousand contract jobs listed on jobserve (last 7 days only) for roles that pay £400 or more a day (72 roles at £800 or more a day)Give us some real life examples.
I ask as my cousins husband is a contract it project manager and on a good wage but he literally knows f
k all about using computers! He can't even figure out how Spotify works or how to do something simple like extend is home WiFi signal. What the fk is he doing at work all day!!??I consider myself highly skilled in my niche role in the NHS and sometimes wonder if, with a bit of extra training, I could switch into something a lot more lucrative.
Take a look and read a few https://www.jobserve.com/gb/en/JobSearch.aspx?shid...
Your cousin might not know how to extend WIFI but he/she might be a dab hand at leading a ERP or GDPR project ....
OP - I'm a dev and I made the jump two weeks ago, all good so far but obviously cant comment on the longer term aspects.
I don't buy into the whole idea that contractors need to be the best of the best. A client needs a role filling but its a short term need, or something they cant recruit for quick enough, they're not looking for the best. Perhaps your perception has come about from seeing other contractors that have a wealth of experience from just doing a number of roles.
My client treats me and the other contractors like permies - I didn't even realise the other guys were contractors until they later said. As others have said I imagine its largely down to who your contracts with.
In terms of the benefits. I'm sure it will work out better, regardless of bench time and holiday but I'm not planning on leasing a lambo anytime soon.
I don't buy into the whole idea that contractors need to be the best of the best. A client needs a role filling but its a short term need, or something they cant recruit for quick enough, they're not looking for the best. Perhaps your perception has come about from seeing other contractors that have a wealth of experience from just doing a number of roles.
My client treats me and the other contractors like permies - I didn't even realise the other guys were contractors until they later said. As others have said I imagine its largely down to who your contracts with.
In terms of the benefits. I'm sure it will work out better, regardless of bench time and holiday but I'm not planning on leasing a lambo anytime soon.
I'm a contract Business Analyst, I bring 27 years experience in IT, 16 of which are as a BA across a huge variety of Clients, Sectors, and tech.
Mostly I seem to bring common sense and the ability to just get on with stuff without flapping. Mainly it is to cover skills gaps, or short term needs, and to be expendable. Agile is keeping me amused currently
I don't do it for the money (although it is nice), I do it so I can have more than 6 weeks holiday a year if i want, I can't deal with corporate politics and games, and I have an attention span in a project/company of about 12 months.
I'd really like to have plan b sorted by the time I hit 50 in 3 years, so I can get out of corporate life for good.
I had a 10 year permie break while we had young children, I knew I was ready for Contracting life again when I was in a pool for Redundancy and was disappointed I didn't get it. I took VR at the next available opportunity (2014) and haven't looked back.
My only advice would be, if you are doing it for the money, it's the wrong reason.
Mostly I seem to bring common sense and the ability to just get on with stuff without flapping. Mainly it is to cover skills gaps, or short term needs, and to be expendable. Agile is keeping me amused currently
I don't do it for the money (although it is nice), I do it so I can have more than 6 weeks holiday a year if i want, I can't deal with corporate politics and games, and I have an attention span in a project/company of about 12 months.
I'd really like to have plan b sorted by the time I hit 50 in 3 years, so I can get out of corporate life for good.
I had a 10 year permie break while we had young children, I knew I was ready for Contracting life again when I was in a pool for Redundancy and was disappointed I didn't get it. I took VR at the next available opportunity (2014) and haven't looked back.
My only advice would be, if you are doing it for the money, it's the wrong reason.
Wilmslowboy said:
dave_s13 said:
Silly question but as an it contractor what do you actually create that then generates enough cash to pay you these high wages?
Give us some real life examples.
I ask as my cousins husband is a contract it project manager and on a good wage but he literally knows fk all about using computers! He can't even figure out how Spotify works or how to do something simple like extend is home WiFi signal. What the fk is he doing at work all day!!??
I consider myself highly skilled in my niche role in the NHS and sometimes wonder if, with a bit of extra training, I could switch into something a lot more lucrative.
There are currently over two thousand contract jobs listed on jobserve (last 7 days only) for roles that pay £400 or more a day (72 roles at £800 or more a day)Give us some real life examples.
I ask as my cousins husband is a contract it project manager and on a good wage but he literally knows f
k all about using computers! He can't even figure out how Spotify works or how to do something simple like extend is home WiFi signal. What the fk is he doing at work all day!!??I consider myself highly skilled in my niche role in the NHS and sometimes wonder if, with a bit of extra training, I could switch into something a lot more lucrative.
Take a look and read a few https://www.jobserve.com/gb/en/JobSearch.aspx?shid...
Your cousin might not know how to extend WIFI but he/she might be a dab hand at leading a ERP or GDPR project ....
pherlopolus said:
I'm a contract Business Analyst, I bring 27 years experience in IT, 16 of which are as a BA across a huge variety of Clients, Sectors, and tech.
Mostly I seem to bring common sense and the ability to just get on with stuff without flapping. Mainly it is to cover skills gaps, or short term needs, and to be expendable. Agile is keeping me amused currently
I don't do it for the money (although it is nice), I do it so I can have more than 6 weeks holiday a year if i want, I can't deal with corporate politics and games, and I have an attention span in a project/company of about 12 months.
I'd really like to have plan b sorted by the time I hit 50 in 3 years, so I can get out of corporate life for good.
I had a 10 year permie break while we had young children, I knew I was ready for Contracting life again when I was in a pool for Redundancy and was disappointed I didn't get it. I took VR at the next available opportunity (2014) and haven't looked back.
My only advice would be, if you are doing it for the money, it's the wrong reason.
You sound like me. Unflappable and good at my job. I have no interest in company politics or climbing the corporate ladder. Tell me what you want and when, and I'll deliver it Mostly I seem to bring common sense and the ability to just get on with stuff without flapping. Mainly it is to cover skills gaps, or short term needs, and to be expendable. Agile is keeping me amused currently
I don't do it for the money (although it is nice), I do it so I can have more than 6 weeks holiday a year if i want, I can't deal with corporate politics and games, and I have an attention span in a project/company of about 12 months.
I'd really like to have plan b sorted by the time I hit 50 in 3 years, so I can get out of corporate life for good.
I had a 10 year permie break while we had young children, I knew I was ready for Contracting life again when I was in a pool for Redundancy and was disappointed I didn't get it. I took VR at the next available opportunity (2014) and haven't looked back.
My only advice would be, if you are doing it for the money, it's the wrong reason.
98elise said:
Agreed, an IT PM no more needs to be a technical geek than a construction PM needs to be a good bricklayer.
However, I do wonder why companies employ a contract PM with no domain or system experience to deliver a project. You may as well deploy one of your generic permie PMs.CzechItOut said:
However, I do wonder why companies employ a contract PM with no domain or system experience to deliver a project. You may as well deploy one of your generic permie PMs.
Contract IT PM will (hopefully) have a more diverse range of experience to call on, than a Permie PM who has been in the same company his whole career - Year for Year anywayYou sound like in a similar situation to myself (not a DEV though, DB guy) and the fact you are asking when is the right time - indicates a slight lack of confidence in yourself - i am the same and have decided i will obtain a MS MCSE before considering making the jump - at least then i will be more 'employable' - plenty people wont agree though.
For me i have a good salary (could always be more!) in a secure sector, decent benefits (14% employer pension contributions/29 days AL plus BH, flexi time, 3 days working from home) - i regularly see contractors earning £300 p/d (double my current day rate ignoring the benefits) - for me its important to attach a monetary value to all the current benefits - add this to the salary and then tax (and understand IR35 -) to allow an informed view of how 'better off' as a contractor you would be.
I do know that you will probably need to take a lower rate when first starting out as a contractor- but have your 'minimum' in mind and dont go below (based on the sums above). I haven't got to this point yet though but thats how i see it.
For me , with a little one and the working from home - its the wrong time to make the jump however this lucrative option will always be attractive, purely for the monetary benefits.
For me i have a good salary (could always be more!) in a secure sector, decent benefits (14% employer pension contributions/29 days AL plus BH, flexi time, 3 days working from home) - i regularly see contractors earning £300 p/d (double my current day rate ignoring the benefits) - for me its important to attach a monetary value to all the current benefits - add this to the salary and then tax (and understand IR35 -) to allow an informed view of how 'better off' as a contractor you would be.
I do know that you will probably need to take a lower rate when first starting out as a contractor- but have your 'minimum' in mind and dont go below (based on the sums above). I haven't got to this point yet though but thats how i see it.
For me , with a little one and the working from home - its the wrong time to make the jump however this lucrative option will always be attractive, purely for the monetary benefits.
dave_s13 said:
Silly question but as an it contractor what do you actually create that then generates enough cash to pay you these high wages?
Give us some real life examples.
I ask as my cousins husband is a contract it project manager and on a good wage but he literally knows fk all about using computers! He can't even figure out how Spotify works or how to do something simple like extend is home WiFi signal. What the fk is he doing at work all day!!??
I consider myself highly skilled in my niche role in the NHS and sometimes wonder if, with a bit of extra training, I could switch into something a lot more lucrative.
just do it then - Its likely your cousins husband would have skills in project management rather than IT - Give us some real life examples.
I ask as my cousins husband is a contract it project manager and on a good wage but he literally knows f
k all about using computers! He can't even figure out how Spotify works or how to do something simple like extend is home WiFi signal. What the fk is he doing at work all day!!??I consider myself highly skilled in my niche role in the NHS and sometimes wonder if, with a bit of extra training, I could switch into something a lot more lucrative.
I actually spoke to a Senior DevOps contractor who I work alongside who explained in depth the pros/cons and broke down the tax benefits/drawbacks of being a contractor of your own LTD company. Safe to say it has only re-affirmed my desire to become one in the next few years.
I plan to 'master' our current stack as it is cutting edge stuff, I feel that once I have a high level of understanding of this I'll be comfortable in making the leap. 1-3 years I'm guessing, depending on how well I develop my skills/confidence.
I plan to 'master' our current stack as it is cutting edge stuff, I feel that once I have a high level of understanding of this I'll be comfortable in making the leap. 1-3 years I'm guessing, depending on how well I develop my skills/confidence.
g7orge said:
dave_s13 said:
Silly question but as an it contractor what do you actually create that then generates enough cash to pay you these high wages?
Give us some real life examples.
I ask as my cousins husband is a contract it project manager and on a good wage but he literally knows fk all about using computers! He can't even figure out how Spotify works or how to do something simple like extend is home WiFi signal. What the fk is he doing at work all day!!??
I consider myself highly skilled in my niche role in the NHS and sometimes wonder if, with a bit of extra training, I could switch into something a lot more lucrative.
just do it then - Its likely your cousins husband would have skills in project management rather than IT - Give us some real life examples.
I ask as my cousins husband is a contract it project manager and on a good wage but he literally knows f
k all about using computers! He can't even figure out how Spotify works or how to do something simple like extend is home WiFi signal. What the fk is he doing at work all day!!??I consider myself highly skilled in my niche role in the NHS and sometimes wonder if, with a bit of extra training, I could switch into something a lot more lucrative.
f
k it....I'll stick to the day job 😀S9JTO said:
I actually spoke to a Senior DevOps contractor who I work alongside who explained in depth the pros/cons and broke down the tax benefits/drawbacks of being a contractor of your own LTD company. Safe to say it has only re-affirmed my desire to become one in the next few years.
I plan to 'master' our current stack as it is cutting edge stuff, I feel that once I have a high level of understanding of this I'll be comfortable in making the leap. 1-3 years I'm guessing, depending on how well I develop my skills/confidence.
Did he go into the recent IR35 changes? I plan to 'master' our current stack as it is cutting edge stuff, I feel that once I have a high level of understanding of this I'll be comfortable in making the leap. 1-3 years I'm guessing, depending on how well I develop my skills/confidence.
S9JTO said:
98elise said:
Did he go into the recent IR35 changes?
Actually no, so I'm guessing this doesn't apply to my current employer - I'll ask this tomorrow maybe 
His explanation was complete with diagrams and all...
There is another alternative if you're not sure about contracting.
I had 15 years of experience in energy & utilities across operations roles and IT delivery roles for one of the big six suppliers. When my career progression plateaued and itchy feet arrived, instead of taking the plunge straight into contracting, I applied for a job at one of the big four consulting firms.
If anything it was much for interview practice as anything else but we got to discussing numbers and they made me an offer I couldn't refuse so I ended up joining them above market rate as an experienced hire.
You may not get quite the premium I managed as I had been delivering large scale SAP projects for 8 years and had in demand industry experience so my timing was pretty much perfect (apart from the waiting for 15 years to do it bit) but even with three years under your belt there will be suitable roles.
It doesn't hurt your afterwards if you want to go contracting after that with a couple of years of blue chip tech firm on your cv, plus you get free developer access and training whilst there.
Just be careful...My plan was to leave after 2 years and I'm still there after 8 years...but I've been on the same client for 7 of those (but so have some of the contractors I've worked with
)
If you're serious about it,
- Scan the CV's on JobServe
- Find out what skills and experience they're asking for
- Set a realistic date you want to switch
- Make a plan backward from that date to develop the skills and experience in time to secure your first role
- Focus on executing that plan (e.g. join codeacademy, udemy, coursera, sololearn, etc and make sure you are capable)
- Jump ship
- Get business cards with Director printed on them
- Hit the gym and become powerfully built
I had 15 years of experience in energy & utilities across operations roles and IT delivery roles for one of the big six suppliers. When my career progression plateaued and itchy feet arrived, instead of taking the plunge straight into contracting, I applied for a job at one of the big four consulting firms.
If anything it was much for interview practice as anything else but we got to discussing numbers and they made me an offer I couldn't refuse so I ended up joining them above market rate as an experienced hire.
You may not get quite the premium I managed as I had been delivering large scale SAP projects for 8 years and had in demand industry experience so my timing was pretty much perfect (apart from the waiting for 15 years to do it bit) but even with three years under your belt there will be suitable roles.
It doesn't hurt your afterwards if you want to go contracting after that with a couple of years of blue chip tech firm on your cv, plus you get free developer access and training whilst there.
Just be careful...My plan was to leave after 2 years and I'm still there after 8 years...but I've been on the same client for 7 of those (but so have some of the contractors I've worked with
)If you're serious about it,
- Scan the CV's on JobServe
- Find out what skills and experience they're asking for
- Set a realistic date you want to switch
- Make a plan backward from that date to develop the skills and experience in time to secure your first role
- Focus on executing that plan (e.g. join codeacademy, udemy, coursera, sololearn, etc and make sure you are capable)
- Jump ship
- Get business cards with Director printed on them
- Hit the gym and become powerfully built
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