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Permies vs contractors in consultancies

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    Permies vs contractors in consultancies

    Originally posted by SlipTheJab View Post
    The work they have is heavily project based and can ramp up and down quickly that's why they use contractors rather than an army or permies, also a lot of it is London based and finding good permie resource in the capital is like trying to source unicorn blood! Can't see them going out and hiring 100 permies to fill the contractor gap, rather I think rates will increase to offset the IR35 reduction, even then it's anyone's game about whether contractors would want to work inside (it a big no from me).
    If the job is right for me and interesting enough I would take it, but would go FTC rather than Ltd Co as to avoid having the administrative burden for no real financial benefit.

    £350 now is worth a lot more than £500 in a number of months.

    WRT IR35, the winners will be the consultancies with perm staff, as they will become comparatively cheaper compared to contractors demanding far higher rates.

    #2
    Originally posted by m0n1k3r View Post

    WRT IR35, the winners will be the consultancies with perm staff, as they will become comparatively cheaper compared to contractors demanding far higher rates.
    The consultancy model for those consultancies with permies only works by supplying a few competent experienced staff and then everyone else being junior. The consultancy doesn't charge less for using people straight from university.
    "You’re just a bad memory who doesn’t know when to go away" JR

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      #3
      IR35 wouldn't be too big an issue if you can get the expenses covered by the consultancy (who often pass them on to the end client). £600/day inside with expenses covered versus £450 outside but paying your own way?
      The greatest trick the devil ever pulled was convincing the world that he didn't exist

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        #4
        Originally posted by LondonManc View Post
        IR35 wouldn't be too big an issue if you can get the expenses covered by the consultancy (who often pass them on to the end client). £600/day inside with expenses covered versus £450 outside but paying your own way?
        It's true, The Consultancy cover all the expenses and this became the permies more expensive. Specially if they need to realoca them in another country or in another part of the country.

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          #5
          Originally posted by Bee View Post
          It's true, The Consultancy cover all the expenses and this became the permies more expensive. Specially if they need to realoca them in another country or in another part of the country.
          But we aren't talking about permies here.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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            #6
            Originally posted by Bee View Post
            It's true, The Consultancy cover all the expenses and this became the permies more expensive. Specially if they need to realoca them in another country or in another part of the country.
            I think you've missed the point Bee

            If the consultancy can (and often do) invoice clients for expenses, they'll do it for contractors and permies alike. While contractors give them a lower margin, they're lower maintenance and generally better performing.
            The greatest trick the devil ever pulled was convincing the world that he didn't exist

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              #7
              Disagree totally about the toxic culture and agile (I'm an experienced agile coach) statement in my context. If that's your experience then that's a shame but not indicative of them as a consultancy IMO. They're very selective about who they have as an associate and the process is pretty rigorous. All excellent experiences with them for me

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                #8
                Originally posted by LondonManc View Post
                I think you've missed the point Bee

                If the consultancy can (and often do) invoice clients for expenses, they'll do it for contractors and permies alike.
                No, not all the expenses can be billable to the client. Why do you think that permies and contractors are treated in the same way?

                Originally posted by LondonManc View Post
                While contractors give them a lower margin, they're lower maintenance and generally better performing.
                Acho que estás a puxar a brasa à nossa sardinha. I'm sure there is an expression in English for this.

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                  #9
                  Originally posted by spottyseagull View Post
                  Disagree totally about the toxic culture and agile (I'm an experienced agile coach) statement in my context. If that's your experience then that's a shame but not indicative of them as a consultancy IMO. They're very selective about who they have as an associate and the process is pretty rigorous. All excellent experiences with them for me
                  Absolutely.

                  Toxic culture is not allowed in the consultancies. The problem is anybody can open a company, hire contractors and call it a consultancy. Crap!!!

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                    #10
                    Originally posted by Bee View Post
                    Absolutely.

                    Toxic culture is not allowed in the consultancies. The problem is anybody can open a company, hire contractors and call it a consultancy. Crap!!!
                    What a load of tulip.

                    I've worked permanently for consultancies plus contracted for a few. Some consultancies have toxic cultures but it varies by project, and if you are a contractor they tend not to want to piss you off.
                    Last edited by SueEllen; 21 October 2016, 20:58.
                    "You’re just a bad memory who doesn’t know when to go away" JR

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