Why are more contractors going permanent ?

[The Spartan]

More work for real contractors I guess then, hopefully rates will be better then as there will be less supply to meet the demand

[BolshieBastard]

When I left my permie employment over 15 years ago, sbout 20 other people followed me and a couple of other people into contracting. Many of them didnt have the correct skills but wanted the 'contracting' money.

Most of them have returned to permiedom after being found wanting.

I know a large foreign bank where lots of people not cut out for contracting have gone contracting. Many of them will return to permiedom I reckon.

Since 2001, massive amounts of iT work has been offshored. Even that which has come back is now staffed by Bobs. In short, its supply and demand imo. Too many contractors and far fewer contracts to be filled.

[BrilloPad]

More work for real contractors I guess then, hopefully rates will be better then as there will be less supply to meet the demand

I suspect alot of companies will use permie staff rather than contractors.

[Gentile]

Why are more contractors now looking for permanent jobs?

Just as I am planning on going contracting this year, all the contractors who I've befreinded over the years (granted, I only know six) are now permanent employees !!!

They indicated that contracts are harder to come by nowadays (recession ?) - but the biggest concern is that working "outside IR35" will become almost impossible, so it's no longer viable to contract. They said that the government are planning on clamping down contracting in a big way and want to make examples on individuals - and that it's one way they can claw back financial losses by attacking "Mr Average". Any of this true or just scaremongering ?

I've heard new teams are being set up to review all new Ltd Co's for sole directors who contract specifically in the business/I.T. arena. Again, true or hearsay ? Are there any stats to support this. I can see the odd "suggested" bulletin on t'internet.

For myself, I'm looking at returning to a permie role at this time simply because of the paucity of realistic contracts out there. In recent months, my personal experience has been that there's been nothing but tyre kickers in the market, who'll happily waste your time with no intention of ever engaging your services. In busier times a good agent will act as an effective roadstop to that sort of client and manage their expectations better, but in quieter times they'll pass any opportunity on to you, even where they know deep down there's not a realistic prospect of your skills being within the client's budget.

The last time I saw this kind of widespread trend was nine years ago during the last mini-dip. I returned to a permie role back then, and stayed working that way for five years, since once you're out it's easier just to stay out (because you need to have immediate availability to be able to contract).

No doubt it'll swing the other way again in time to come. And ironically when the market does pick up things will be twice as hot, since there'll be even less contractors left to do the available work. Swings and roundabouts. I couldn't advise anyone in a permie role to make the leap at this time, but there'll be a right time to do so at some point in the future.

[SimonMac]

I posted something in General a few days ago alluring to the same thing, I thing the hard core contractors, or those who are more niche, will always stay contractors, there will always been an influx of ex-permies who thing contracting is the best thing since slice bread, and quickly find out its not as cosy a life they first though and bounce back to permiedom.

Also there is the like who to take the opportunity of reskilling in a permie role during a slowdown in the market, to come back to contracting at a later date

[The Spartan]

I suspect alot of companies will use permie staff rather than contractors.

I hope not but I'm sure we'll see, I'm in pole position at the moment the gig I'm in at the moment should see good till next year and I'm hoping it'll set me up for something closer to home too

[swamp]

I found the market to be OK. Rates are generally lower, but there is demand for people with good skills. Getting a decent rate is however quite tough.

IMO lots of chancers are being found wanting in the market and are scurrying back to perm.

[Crack Addick]

I don't think anyone mentioned this, but a lot of contractors have gone permie simply because they have been forced to.

IBs like JPM and Citi have forced contractors en masse to convert or else leave. Some obviously feel that less salary as a permie, is better than no money as a contractor, so convert. But soon as things pick up, most of the ones I know will be off contracting again.

[BolshieBastard]

I found the market to be OK. Rates are generally lower, but there is demand for people with good skills. Getting a decent rate is however quite tough.

IMO lots of chancers are being found wanting in the market and are scurrying back to perm.

Depends on your skillset. Some are seeing the bottom literally fall out of the market outside London. I could probably have a better than even chance of getting a job inside 10 days if I was prepared to work in the smoke. But Im not and I accept jobs are going to be fewer right now.

[DeludedAussie]

Depends on your skillset. Some are seeing the bottom literally fall out of the market outside London. I could probably have a better than even chance of getting a job inside 10 days if I was prepared to work in the smoke. But Im not and I accept jobs are going to be fewer right now.

What does smoke mean?