Are there any downsides in this scenario?

[Sausage Surprise]

Been contracting for a big national retailer for the past year as one of the few "independent" contractors. 99% of the other "contractors" come through supply companies i.e. Wipro, Wincor, etc ......They are supplied at contractor rates but are really employees of the supply companies if you get my drift.

My question is, I have been approached to join one of these supply companies but will remain as a Ltd Co "proper" contractor. From their side they obviously get their "cut" - from my side they are offering roles at multi clients to keep me ticking over for a couple of years at least.

Only downside I can see is that my current agent would not be happy at renewal if i refused an extension but remained at current client co working for this supply co. However, this could be rectified if the supply co initially posted me to another client.

Has anyone gone down this route and discovered any further pros or cons?

[kingcook]

Been contracting for a big national retailer for the past year as one of the few "independent" contractors. 99% of the other "contractors" come through supply companies i.e. Wipro, Wincor, etc ......They are supplied at contractor rates but are really employees of the supply companies if you get my drift.

My question is, I have been approached to join one of these supply companies but will remain as a Ltd Co "proper" contractor. From their side they obviously get their "cut" - from my side they are offering roles at multi clients to keep me ticking over for a couple of years at least.

Only downside I can see is that my current agent would not be happy at renewal if i refused an extension but remained at current client co working for this supply co. However, this could be rectified if the supply co initially posted me to another client.

Has anyone gone down this route and discovered any further pros or cons?

Would you still be free to accept other gigs from other clients in the event that the supply company can't find you a gig? (or you decided not to accept for whatever reason).

If yes, i'd be tempted to say yes AFTER the gig with the current client (including any renewals) has finished. As you say, the agent would not be happy f'ing him off and going via (basically) another agency (there's probably some clause in your current contract preventing this anyway).

Just my 2p's worth.

[Pondlife]

Does this cost you anything? i.e. you're not getting a reduced rate because of this are you?

I actually went the other way. I was originally through a Big Consulting Co but they kept jacking up the price until the client got the hump and took me through another preferred supplier.

I would consider the above happening as a scenario. What if wipro etc decide they want to charge the client more for your services or put someone cheaper in your place. You've lost some of your bargaining power with the client especially if you've been offsite for a project or two.

[ChimpMaster]

Been contracting for a big national retailer for the past year as one of the few "independent" contractors. 99% of the other "contractors" come through supply companies i.e. Wipro, Wincor, etc ......They are supplied at contractor rates but are really employees of the supply companies if you get my drift.

My question is, I have been approached to join one of these supply companies but will remain as a Ltd Co "proper" contractor. From their side they obviously get their "cut" - from my side they are offering roles at multi clients to keep me ticking over for a couple of years at least.

Only downside I can see is that my current agent would not be happy at renewal if i refused an extension but remained at current client co working for this supply co. However, this could be rectified if the supply co initially posted me to another client.

Has anyone gone down this route and discovered any further pros or cons?

If it's Wipro or the like, you're gonna get screwed over by them; they will dump your contract and put in their own cheaper consultants to make a bigger mark-up.

Look after yourself and don't rely on one of these consultancies to do that for you - they are far more selfish and cut-throat than you might imagine.

[Sausage Surprise]

Would you still be free to accept other gigs from other clients in the event that the supply company can't find you a gig? (or you decided not to accept for whatever reason).

If yes, i'd be tempted to say yes AFTER the gig with the current client (including any renewals) has finished. As you say, the agent would not be happy f'ing him off and going via (basically) another agency (there's probably some clause in your current contract preventing this anyway).

Just my 2p's worth.

This is the bit I would need to sort out during negotiations. But from the amount of work and clients they have it may not be such a big problem.

[Sausage Surprise]

If it's Wipro or the like, you're gonna get screwed over by them. Look after yourself and don't rely on one of these consultancies to do that for you - they are far more selfish and cut-throat than you might imagine.

NOT Wipro!!

They're a UK based UK supplier.

[Sausage Surprise]

Does this cost you anything? i.e. you're not getting a reduced rate because of this are you?

I actually went the other way. I was originally through a Big Consulting Co but they kept jacking up the price until the client got the hump and took me through another preferred supplier.

I would consider the above happening as a scenario. What if wipro etc decide they want to charge the client more for your services or put someone cheaper in your place. You've lost some of your bargaining power with the client especially if you've been offsite for a project or two.

Good point never thought of that. Having been working alongside them for nearly a year they do seem quite reputable though. However, business is business when it comes to rates.

Oh..and no my rate wouldn't decrease.

[jmo21]

Frankly, I don't buy it.

They are not guarenteeing you work in other places.

If they have someone cheaper they'll use them instead.

So the only thing that is presumably happening is "you" become more expensive for your end client (unless you are dropping your rate of course, which I highly doubt).

They are maximising their footprint on the client side by eliminating a "not them" consultant, even though they are essentially keeping the same physical person.

All these consultancies are the same.

If client-co are mandating you must go through that's very different.

[kingcook]

This is the bit I would need to sort out during negotiations. But from the amount of work and clients they have it may not be such a big problem.

Wouldn't that be an IR35 issue? i.e. the company blocking you from working with others?

[northernladuk]

Wouldn't that be an IR35 issue? i.e. the company blocking you from working with others?