Taking a lead from the theads "WebSphere, what's happened?" and the "At what point do I consider... Perm?", as well as the numerous ‘rate-cut’ threads, I wanted to throw down some thoughts I was having on the subject of contracts and rates in general, perhaps to elicit some reasoned discussion between us all.
The decline in rates has been a trend since 2000. I.T. peaked at around that time - I can remember contractor rates of £1,000/day being commonplace and hoards of ill-prepared “consultants” being charged out at sky-high rates. Of course, there were also the canny consultants, and the fortunate ones, who had been in I.T. long enough to truly realise the benefits of the boom, to earn high rates and invest them wisely (not me).
Computer Weekly was filled with 30 pages of articles and 50 pages of jobs at the back. Changing permie jobs involved a phone call and a short interview (or 2), and typically entailed a 40% rise in salary, it was that quick and that easy. The sun was always shining for those in I.T… it was the chosen industry of the modern era, and you could say with pride that you were an I.T. consultant.
In addition, house prices were affordable, gold had pretty much the same value it had 20 years earlier, inflation was low and energy costs a non-issue, and the stock market was rising confidently.
And then, with the dot.com collapse, and with some help from Al-Qaeda, and a lot of help from Greenspan, it all came crashing down. The mini-boom in-between was nothing more than a dulled attempt to feign continuation of the preceding decade’s economic success.
Now, 10 years on, rates are on the whole lower than they were years ago, and still falling. I.T. has taken the double-whack of a hard-hitting global recession along with a global proliferation of the industry.
The supply of I.T. skilled people has gone worldwide and has led to cheaper imports as well as off-shoring of work, impacting the western economies further as more and more jobs and business contracts are sent across the oceans. A perpetual downwards spiral. Jobs and contracts boards are quiet, far less populated than they were just a few years ago, and rates are often 50% less than what they were back in 2000. No longer is I.T. the favoured career choice of the western world.
Cost of living is far higher, and rising still with no end in sight, and we appear to be in what will become a decade long recession.
Personally, I can’t see the industry improving for us in the western world, and I can’t rates improving. The trend was set into motion a decade ago and has accelerated in the past couple of years. You can learn a new skill and you can teach yourself another unique selling point, but you’ll just have to do it again every couple of years. And it still won’t get you the heady rates of the good ol’ days.
We’re now working in a commoditised industry, and it’s not going to get any better.
The decline in rates has been a trend since 2000. I.T. peaked at around that time - I can remember contractor rates of £1,000/day being commonplace and hoards of ill-prepared “consultants” being charged out at sky-high rates. Of course, there were also the canny consultants, and the fortunate ones, who had been in I.T. long enough to truly realise the benefits of the boom, to earn high rates and invest them wisely (not me).
Computer Weekly was filled with 30 pages of articles and 50 pages of jobs at the back. Changing permie jobs involved a phone call and a short interview (or 2), and typically entailed a 40% rise in salary, it was that quick and that easy. The sun was always shining for those in I.T… it was the chosen industry of the modern era, and you could say with pride that you were an I.T. consultant.
In addition, house prices were affordable, gold had pretty much the same value it had 20 years earlier, inflation was low and energy costs a non-issue, and the stock market was rising confidently.
And then, with the dot.com collapse, and with some help from Al-Qaeda, and a lot of help from Greenspan, it all came crashing down. The mini-boom in-between was nothing more than a dulled attempt to feign continuation of the preceding decade’s economic success.
Now, 10 years on, rates are on the whole lower than they were years ago, and still falling. I.T. has taken the double-whack of a hard-hitting global recession along with a global proliferation of the industry.
The supply of I.T. skilled people has gone worldwide and has led to cheaper imports as well as off-shoring of work, impacting the western economies further as more and more jobs and business contracts are sent across the oceans. A perpetual downwards spiral. Jobs and contracts boards are quiet, far less populated than they were just a few years ago, and rates are often 50% less than what they were back in 2000. No longer is I.T. the favoured career choice of the western world.
Cost of living is far higher, and rising still with no end in sight, and we appear to be in what will become a decade long recession.
Personally, I can’t see the industry improving for us in the western world, and I can’t rates improving. The trend was set into motion a decade ago and has accelerated in the past couple of years. You can learn a new skill and you can teach yourself another unique selling point, but you’ll just have to do it again every couple of years. And it still won’t get you the heady rates of the good ol’ days.
We’re now working in a commoditised industry, and it’s not going to get any better.
but he's missed a point. If there are no entry level roles, where are the middle managers and PMs coming from in five year's time? That's the real price we're paying.
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