Time to start contracting?

**NotAllThere** · 13 July 2010, 12:59

Until you start applying for contracts, and start getting interviews etc., you won't know. It's a risk. FWIW, you sound like most functional analysts I've met, and they someone how manage to scrape a living. What do you mean by "deep SAP technical skills"?

**kempc23** · 13 July 2010, 13:33

Thanks for your reply.

What I mean by "deep SAP technical skills" is this. I have on several projects SAP projects, but only one that has been really hands on (18 month Global implementation, from start to end of project). So I have a good understanding of a few SAP modules in terms of their functionality, and what they can do, but I certainly wouldnt consider myself an expert in terms of configuration settings and so on.

This is a result of the kind of projects that my company does, and also that often we team up with cheaper SAP resources, who do the configuration and technical stuff, but we do the process design/business adoption/stakeholder management side of things.

**Going Strong** · 13 July 2010, 13:36

Test the waters and gage the market would be your best bet otherwise you'll never know where you stand..

The market is voilitile at the moment so jumping in right now might be risky but having said that there are loads of programme managers/PM's etc scopping out loads of projects so have a look.

**d000hg** · 13 July 2010, 13:54

If you work 200 days a year (over 75% of the working days) at £400 a day you'll be bringing in £80k. The year after that, maybe the same, and the year after that. That doesn't seem financially preferable to a likely salary of £70k with pensions and sick leave and holiday (I assume you get decent perks on a job paying that well too), especially since you'd presumably carry on getting raises over time.

How much of this is about money, how much is about other things?

**northernladuk** · 13 July 2010, 13:59

There is another thread a few below this one right now discussing the state of the market which could be an interesting read for you.

We can't really give you advice as the description of your skills is a tad vague to say the least so you are going to have to do some of your own research. You need to search for roles that are a perfect fit for you. Contracting does not do 'a good man that can' though like permie land. The role you are looking at has to be a perfect match to exactly what you can do. Do not kid yourself becuase it says SAP they will take you on and train your or you will be able to get by. You have to demostrate you are competent in that role. From there you can decide yourself if the market is ready.

70k sounds like a reasonable amount of cash but we can't say what daily rate you can pull in so hard to make a comparison of income but if someone offered me a 70K role with the ability to learn more about SAP I wouldn't need to think too hard before taking it to be honest. I am wondering if you need to have a look at the market first, DO NOT get rose tinted view on the huge rates, be practical and then sit down and get the skills you need for the megabucks and come back to contracting in a year. If you can see certain SAP elements bring in the money get that on your training plan, learn it and then hit the market as a trained specialist while you have the comfort to do so.

**kempc23** · 13 July 2010, 14:09

Thanks again for all the replies.

Well my view has been that clients have paid ridiculous consulting day rates for me to be there, and I have been able to deliver, so theoretically there must be a market for my skills out there.

I also have known several colleagues who have come from a similar background to me, and gone on to be very successful in the contracting world.

From a financial perspective, the numbers seem to add up. On a 70k salary, I am assuming my overall package to be worth 77k (it already includes 6k benefits allowance, but added 4k pension and 3k bonus). If I can charge more than £400 a day, then it starts to be even more compelling.

It is not all for financial reasons though, part of it is due to wanting more flexibility, and not having to do all of the other rubbish that you are expected to do at a big four firm! I really enjoy the project work I do, so just want to do that, do it well, then move onto another project.

Perhaps it is sensible to spend another year getting more skills, but that could turn into another, and another.

**eek** · 13 July 2010, 15:41

There is one thing you are missing. Currently you perm company has salesmen actively selling your services. Once that goes you are reliant on agents to find work. Its not a real show stopper but you do need to think how you will get future work.

**Fred Bloggs** · 13 July 2010, 17:28

Overall, I think you will worse of on £400 a day compared to £70k a year. You need to pick up a lot more than £400 a day to match what you now have IMO and now is not the ime o start out. Stick with the £70k for now is my advice. Right now I'd think seriously about accepting a guaranteed £70k a year and my day rate is currently £650.

**Clippy** · 13 July 2010, 18:10

Originally posted by kempc23 View Post

Thanks again for all the replies.

Well my view has been that clients have paid ridiculous consulting day rates for me to be there, and I have been able to deliver, so theoretically there must be a market for my skills out there.

I also have known several colleagues who have come from a similar background to me, and gone on to be very successful in the contracting world.

From a financial perspective, the numbers seem to add up. On a 70k salary, I am assuming my overall package to be worth 77k (it already includes 6k benefits allowance, but added 4k pension and 3k bonus). If I can charge more than £400 a day, then it starts to be even more compelling.

It is not all for financial reasons though, part of it is due to wanting more flexibility, and not having to do all of the other rubbish that you are expected to do at a big four firm! I really enjoy the project work I do, so just want to do that, do it well, then move onto another project.

Perhaps it is sensible to spend another year getting more skills, but that could turn into another, and another.

Firstly, you are very, very lucky in that there is some excellent, constructive advice in this thread which is not always the case.

I agree with what the others have already said and what you seem to be realising in that I would sit tight for now, add to your skills and re-evaluate in a years time - I would suggest next Spring.

Also, your maths is slightly wrong as you say your current package, on a salary of £70k, is worth £77k.

You don't seem to have accounted for sick pay, training, holiday pay etc.

The perceived wisdom regarding package value, IIRC, is 25% of salary so yours would be worth approx £88k.

Finally, you mention that clients have paid huge sums in the past and you have always delivered.

True, but they have hired the company you work for not you personally and you have been in the fortunate position to have a support network of managers, colleagues etc to support you if you ever got stuck something which you won't have when you are contracting.

Time to start contracting?