What to do?...what to do? :/

[nr152522]

Hi All,

I am working in the IB world as a permie and the platform I work is used by most of the major IB's. Contract rates are usually at least £600/day from what I observe through jobserve, itjobswatch, etc.

Now my dilemma. I have not been contracting before and was hoping to do this once I had more experience from my current permie role. However, I have now been offered an initial 6 month contract from my previous employer at £380/day. This contract is working for one of the big IT consultancies on a banking project.

My current role pays £35k but it is giving me exposure to this niche software that is in high demand, with few consultants out there.

My question is, do I stick it out for another year or two until I have enough experience to get those higher rates or should I jump now and experience my first contracting role earning more money?

I am sure I would be able to renew the contract, even find other contracts within the same company but this would mean I would be moving away from the IB sector.

Your views/help will be appreciated.

Thanks

[Olly]

stay where you are and get nice and skilled up...simples! There really is nothing to think about here I believe

[Clippy]

stay where you are and get nice and skilled up...simples! There really is nothing to think about here I believe

^ WHS

A year will fly by, you will have added to your skills and the market (and economy?) should, hopefully, be a little bit stronger.

[Wanderer]

offered an initial 6 month contract from my previous employer at £380/day.
My current role pays £35k but it is giving me exposure to this niche software that is in high demand, with few consultants out there.

On those rates, you could easily earn more in this 6 months than you would in your permie job for a whole year. It's a no brainer in my book. I think the others are just telling you to stay so they can have a crack at the job.

Go contracting, join the PCG and get setup with a LTD company and accountant. Read through all the first timers guides. Understand that you won't get any sick pay, annual leave, pension or job security but you will earn a shed load of money. Keep your head down and work your butt off, maybe you'll even get extended and then you will be well on your way.

But understand that you will be playing with the big boys and you won't get any sympathy here if you get hurt.

[northernladuk]

I don't agree with Wanderer and do agree with the other two. A few factors that make me think this...

You are on 35K in an IB? That isn't very good so I wonder how old you are and what your skill set is. Sounds like you are still on the ladder to me.

Exposure to niche skills... Spend a year getting in to these and you can double the rates you would be on if you get it right. 1 year for 20 years in contracting. Good investment I would say.

Forget the £600 a day.. they lie, you are not skilled enough, they fluctuate yadda yadda. You have to fit the bill for these roles exactly. Forget the permie mentality of 'I can do that' You have to be able to demostrate you have been doing that job for years. If you can't the rate and role are not worth the paper they are written on. If you are a general good chap that does not cut it in contracting. Your ex employer might take you on cause he knows you, new people won't. Do not do the starry eyed money chasing thing.

Use the year to get up to speed with accoutancy, running a business, do every course you can and beg your boss to get on interesting and useful projects to get that CV ready.

Many guys do make the jump quite successfully and good on them for doing so, you probably could too I reckon. Generally there is no time like the present but if there is opportunity to fix some faults (older get more experience) and add to your value (training, experience, useful projects, get warchest going) then I don't think up to a year investing in that is a bad thing.

[norrahe]

Stay where you are get as much niche experience as you can.

The market is still very volatile, so get the experience while you can, without having to fork out out of your own pocket, get as many courses as you can out of where you are.

Also you should realise that you might not get that £600 a day when you first start, and don't despair if you don't, it often takes time to move up the rungs of the rate ladder.

[Saddo]

Agree with the thoughts of others about staying put to get more experience. The job market is in a right old state presently and will most likely worsen after Oct 20th and the coalition another their plans. Look on contracting as a useful option for the time being. Review in 12 months time.

With respect to rates be aware that agents lie thru their teeth. If you get £380 a day then they might add another couple of hundred for their commission, and it ain't a nice feeling having a pimp creaming off what you could have been getting. If it's a direct contract that wouldn't be a problem though.

[MrHelpful]

Stay at the IB and become an expert in the niche. You can then command your rate... to go out contracting at this early stage in your career would be premature - its best you learn the trade and be "go to man" "the font of all knowledge" your in investment banking and work with some great capitalist.... feed of them! If only I took the IB route... use your permie time wisely - its not that bad as people on here make out to be.. I enjoyed my permie stint and contracting is good too but looking back permie was pretty good to me too! As others say... learn as much as possible, absorb absorb absorb.... allow the work/life balance shmucks - unless you have kids. Stick another 2 years in and then the world will be your oyster! (no london pun intended)

[MarillionFan]

I'd go with the contract. You already have IB experience. You will then be a contractor with IB experience.

The comments about tough market are true. But it depends on your ability, experience and presentation skills.

No contractor has ever regretted their leap into it. If they do, they're actually a perm.

[Olly]

Hang on here...hand on one second ...I'm right I'm right
STAY THERE, that's not a suggestion it's an order

If you can only get £380 in a banking environment then you definitely have the possibility to learn more as a permie. Milk them for all the training and exposure to other technologies as you can get and then make the move.

When you're a contractor people hire you for what you know and what you have experience in. Personal development slows and you won't get the same breaks to get experienced in new things.

In 2 years time you can switch at £500 a day, switch now and you'll be on £400 a day (or not in a contract at all!) if you move to contracting too soon.

Saddo is talking rubbish about a topic that's been done to death. What the agent charges the end client is not relevant. You agree a rate with the agent that you're happy with. Ok so if you know the margin then it puts you in a good bargaining position but that's all. If they can get someone else at a better margin they will in the blink of an eye. Besides many big end-clients closely monitor this kind of thing now. 10% would be quite generous to the agent in this day and age.

P.S. stay in IB sector if you want big bucks and don't have issues with the other aspects it implies