To Go Contracting.. or not to go Contracting...?

[Francko]

That's a bit strong. Got turned down for a rate rise, did you? Or just get into the wrong skillset?

My experience, in, ahem ".net", both as a hiring manager and a contractor, is that the more skilled people get paid more. Immoral, unscrupulous people tend to be client permie managers.

The rate will never reflect your real value. In IT some people are worth 2-3-4 times more than the other. You would never get a rate as high as that unless you have very important political connections with the top managers. If you are capable of that then you are also capable of succeeding as a top permie manager. For the rest if you are skilled yes, you can make a decent rate as a contractor or a decent salary as a permie. Yet, it will never reflect the difference with some of the sandbags you are working with whose added value is next to 0.

[moorfield]

Idealpeople
Not worth listening to
Join Date: Jan 2008
Posts: 1

You are Wilmslow in disguise and I claim my £5. Next.

[PAH]

Contracting is for mugs. Any permies out there considering it, don't.

You'll feel like you're being hunted down by HMRC who keep inventing legislation to make it easier to snare you with their IR35s and 6s. I know fugitives who sleep better at night.

Unless you're lucky enough to live in or around London, don't expect to be able to commute from home. Do expect to have to live in hotels or flea-pit B&Bs during the week. After a few years of that it's soul destroying, believe me. Kids? They're those little people in the photos you have. Single mothers have more contact from the fathers.

Think I'm exaggerating? Ask yourself why there are so many on here thinking about Plan B's. Contracting can sometimes be about as appealing as working in the sewers.

So why am I a contractor? Because I'm single, no kids, and love driving my replica police car up and down the M6 at 120mph every weekend. Even so, I still feel the need to take a year off every now and then, just to remotivate myself. Maybe permiedom isn't much better?

[shoes]

These are the things that motivate a true contractor. The money is a recompense for their effort - not a major factor in their decision to be an IT Contractor.

Well that's a bit of a generalisation. What does 'true contractor' mean? If you're contracting you are a contractor, regardless of your motivations. Whether contracting is right for you depends on your circumstances and what you want out of life. Is the alternative of permanent employment better? Are permanent employment and contracting your only choices?

Its subjective and depends on the individual. Its a krap article.

[NotAllThere]

The rate will never reflect your real value. In IT some people are worth 2-3-4 times more than the other. You would never get a rate as high as that unless you have very important political connections with the top managers. If you are capable of that then you are also capable of succeeding as a top permie manager. For the rest if you are skilled yes, you can make a decent rate as a contractor or a decent salary as a permie. Yet, it will never reflect the difference with some of the sandbags you are working with whose added value is next to 0.

On average, in terms of total cost of ownership, an application written by a good programmer will be some 20x cheaper than that written by an average programmer. And 50x than that written by an bad programmer. I know my rate will never reflect this. I get the top end rates, because I'm known to be very good. But it's only about double the low end rate.

And some of those sandbags you mention - they have a -ve added value!

Still, much better than being a permie.

[Francko]

I get the top end rates, because I'm known to be very good. But it's only about double the low end rate.

Also good permies can make twice or more than average permies so I feel that there is some kind of balance in the money afterall. What you can argue is that the quality of the measure for "good" permies that might not be as fair as the one used for contractors. But then again we have a natural bias so I wouldn't be sure of that. I keep thinking that good quality people are paid well as permies and as contractors while low quality people are paid bad as contractors and as permies.

[Ardesco]

Quite simply, money drives us all and the thought of money lures IT Professionals away from the perceived security of Permanent employment to Contracting. There is a big, big difference between a perm salary of say £40,000 and a £400 per day rate, which is arguably the Contracting equivalent (and works out at circa £96,000 per annum, assuming you take 4 weeks’ holiday). Sometimes, money speaks.

Not too accurate IMHO. Contractors can get hit by a much higher tax burden than permies. Assume IR35 caught and you can say goodbye to 47% of that money as it gets eaten up in taxes.... which drops income down to £50,000~ net. Compare that to the permie net wage of £37,000~ and take into account the permie gets paid holidays, sick pay and their benefits package (and probably a bonus as well) and the extra earnings as a contractor aren't quite as impressive any more.

One of the big mistakes permies make is that they don't realise how much of their hard earned contracting money can be taxed away if they aren't careful to ensure they are IR35 complient.

[DS23]

i'm in it for the money.

[b0redom]

What a massive massive bunch of arse from the OP.

I'm in contracting pretty much solely for the money.

I spent years as a permie, being suckered into working loads of unpaid overtime and the promises of riches through stock options.

I fell into contracting sort of by accident - it's the 1st thing I was offered after coming back from some travelling, and haven't looked back since.

• Money is great
• I can take holidays when I want
• I don't have to do pointless focal reviews and then get a 1% pay increase 'because it's been a really hard year for the company'
• If I don't like the conditions/job/people I can leave and there's no stigmata attached
• Money is great

[Churchill]

What a massive massive bunch of arse from the OP.

I'm in contracting pretty much solely for the money.

I spent years as a permie, being suckered into working loads of unpaid overtime and the promises of riches through stock options.

I fell into contracting sort of by accident - it's the 1st thing I was offered after coming back from some travelling, and haven't looked back since.

• Money is great
• I can take holidays when I want
• I don't have to do pointless focal reviews and then get a 1% pay increase 'because it's been a really hard year for the company'
• If I don't like the conditions/job/people I can leave and there's no stigmata attached
• Money is great

Don't be getting all religious on us now!