Will contract rates increase to pass dividend tax increase to clients?

[LondonManc]

Not wanting to ruin your world view, but the cost of outsourcing is going up very significantly. The figures I'm seeing suggest they are only just half the cost of local resource now, but the upward trend is quite strong. The day of them being the 20th of the cost of a local resource are long gone. Many businesses are beginning to look at bringing the more high value work back onshore.

When you factor in that you could get a Manchester-based resource for £300-£350/day rather than a London-based one for £500-£600/day, numbers can be adjusted very favourably in keeping contractors local; factor in a single department to manage London and Manchester contracts with them being in the same country, no time window to do calls in, no language barriers (apart from this lot down here tawking fanny init gavner) then a "north-shoring" policy would work wonders. USA firms often run their back-office operations in a US city where day rates are lower; for me, it's a model that would work well over here too.

[northernladuk]

Not wanting to ruin your world view, but the cost of outsourcing is going up very significantly. The figures I'm seeing suggest they are only just half the cost of local resource now, but the upward trend is quite strong. The day of them being the 20th of the cost of a local resource are long gone. Many businesses are beginning to look at bringing the more high value work back onshore.

Doesn't ruin my world view. Just another set of factors from a different source all affecting what we do. I was just mentioned the fundamental shift from what used to be a specialised method of engagement to the standard where clients go straight for a contractor and anyone with anything over 2 years experience thinks they can be a contractor. It's being diluted at pace so still some time before it level off but no doubt the Gov will drop a bomb on it before that happens for exactly the reasons I've just mentioned.

[LondonManc]

RBS, Deutsche, HSBC, Barclays all doing it ...

What the fluffing hell am I doing down here then. Meh.

[LondonManc]

"Manchester-based resource for £300-£350/day rather than a London-based one for £500-£600/day" <<< That's why

Ah yes. As you were

[dogzilla]

In my experience the rates aren't half. It really depends on your sector.

I was getting calls earlier this year for jobs in Sheffield and Manchester which were within 20% of my London rate. Considering cost of living, it's very competitive.

And given the fact they are calling me in London, it seems the demand is outstripping supply up there.

The tech industry is still growing massively. I can only assume those of you talking about the end of contracting are in an oversubscribed sector.

[KentDogWalker]

Watch this space

Yeah, why is it that clients in London don't like you working the odd days remote and let you work part time?

[SussexSeagull]

In my experience the rates aren't half. It really depends on your sector.

I was getting calls earlier this year for jobs in Sheffield and Manchester which were within 20% of my London rate. Considering cost of living, it's very competitive.

And given the fact they are calling me in London, it seems the demand is outstripping supply up there.

The tech industry is still growing massively. I can only assume those of you talking about the end of contracting are in an oversubscribed sector.

I must confess when I hear of people saying the contract market is in a bad way I am surprised as most if not all of the contractors I know are in contract and have minimal breaks between engagements. Admittedly this isn't a scientific survey.

To get back to the original question, if you are on, for arguments sake, £300 a day and ask for £325 you need to adding more value than someone else on £300.

[SlipTheJab]

I must confess when I hear of people saying the contract market is in a bad way I am surprised as most if not all of the contractors I know are in contract and have minimal breaks between engagements. Admittedly this isn't a scientific survey.

To get back to the original question, if you are on, for arguments sake, £300 a day and ask for £325 you need to adding more value than someone else on £300.

I would say the more likely scenario is that you need to be a better negotiator, different agency margins means that the client is probably paying the same to the agency regardless.

[Willapp]

I must confess when I hear of people saying the contract market is in a bad way I am surprised as most if not all of the contractors I know are in contract and have minimal breaks between engagements. Admittedly this isn't a scientific survey.

I feel the same. Everyone I know is in contract at the moment, and my current client (a very large company in the East of England) are struggling to find decent developers whether contract or perm and the rates they're offering are extremely competitive so I can only assume there is a genuine shortage of the skilled resource they're looking for.

[bobspud]

I must confess when I hear of people saying the contract market is in a bad way I am surprised as most if not all of the contractors I know are in contract and have minimal breaks between engagements. Admittedly this isn't a scientific survey.

To get back to the original question, if you are on, for arguments sake, £300 a day and ask for £325 you need to adding more value than someone else on £300.

Thats easy. Just pointing out the stress of finding another resource and waiting for 3 months for them to get up to speed will get you a £50 a day bump. I think some contractors play into the bigger businesses hands to readily.

I also know many contractors that stay off the market quite well but all too many of them are quoting far too low for the job they are doing.

In contrast I know a chap that is happy to take a break or two in a year but he specialises in start tomorrow type gigs that he can hold to a 4 figure ransom.