Do not jump into contracting now!!!

[Francko]

...and you sound like a lonely p!sshead saddo.

1998 followed my own advice and been contracting ever since through good and bad. During 1990-1992 recession I sailed through that as a permie, suffering only a pay freeze. I did see the fallout though, as any ITer out of work (perm or con) had a real problem. In 1998 I was a £30/hr Lotus Notes dev, now I'm a £££/hr SAP Netweaver expert . Done this by skillfully selecting contracts to upskill. It wasn't always easy though.

In the boom of 2000/1, then as a Java dev I saw swaythes of non-risk types permies get drawn into the contracting gold rush. They had convinced themselves there were no risks. Probably from agents and people like you. Many enjoyed a single contract before getting benched during 2001/2/3. Some lost relationships, some lost houses, some managed. Most eventually went back to permie. For me I was benched 7 months during 2003, got divorced as I was no longer judged a good provider, learnt SAP, started work again, eventually re-married, new family, investments and houses. Never looked back and have a huge stash or cash. Don't actually need to work. You see, Mr Geek, after 9 yrs in the game I'm ready for any downturn, most newbies are not.

I believe you do have a very valid point. This is not the right time to "start" contracting. If you don't have some savings that could help you when you are on the bench then it's a too high risk to start. I did contracting for a few years but I did not start at the right time. I always worked though and made a few extra savings but certainly I did not become rich as if I could have started a few years before. Then when times became good again I'd preferred some more stability, not in terms of real job security but stability in a sense that I knew where I was going to work in the next 12 months.

However, if someone prefer this lifestyle and has enough savings then I certainly wouldn't recommend to get a permie job because of fear of a recession. I think the important is that you go for a contract for at least twice the money. There was someone here who went contracting for a little more than a permie salary. Obviously he wasn't considering the associated risk and probably never worked during a downturn.

Bitter moi? non monsieur, je continuerai comme déjà fait

PS: au revoir M., vous êtes maintenant sur le mon ignorez la liste

Oh, I said you had a valid point but now that you talk in a such obsolete language I had to take it back.

[PAH]

Oh, I said you had a valid point but now that you talk in a such obsolete language I had to take it back.

You saying he's got a Lisp!?

Some people say that in a downturn contracting is a better choice due to companies having to keep staff numbers off the books, and they move to a more resource management phase where short term contractors are more appealing than taking on permies.

[Francko]

You saying he's got a Lisp!?

Some people say that in a downturn contracting is a better choice due to companies having to keep staff numbers off the books, and they move to a more resource management phase where short term contractors are more appealing than taking on permies.

Lisp is more spoken than French.

Point can be valid only if your skills are up-to-date. You wouldn't get a chance to get cross trained in a permie job during downturns since competition for those will be very tough. I guess it depends on your specific situation. As a general advice, though, I think it is good to consider that you might spend a few months on a bench if there is a downturn and if you are not financially ready it can be a problem.

[VectraMan]

Some people say that in a downturn contracting is a better choice due to companies having to keep staff numbers off the books, and they move to a more resource management phase where short term contractors are more appealing than taking on permies.

My client made mass redundancies last year, and gave me an extension. They all got the minimum legal pay off (£300 per year of service IIRC), but at a stretch I could survive for a year on what I make in 3 months. So who has security?

[PAH]

My client made mass redundancies last year, and gave me an extension. They all got the minimum legal pay off (£300 per year of service IIRC), but at a stretch I could survive for a year on what I make in 3 months. So who has security?

Besides I figure I could live on credit cards for a year and spend a few months paying them off when I finally landed a contract if the worst happened.

At the moment the pimps are saying the market is fairly busy so I'm hoping the 6 to 12 month contracts they're dangling under my nose are real and I get lucky landing one of them.

I'm certainly past pissing all my money up the wall and on sports cars like I did a few years ago. Currently debt free and hoping to save more than I spend moving forward.

[Turion]

It's the Risk that needs to be taken into account. In my view it's being downplayed, just as what happened in the credit markets. To risk a steady permie job that pays the bills and maintains reasonable life style is now very great, especially for someone with a family, mortgage and wife to keep happy. If that were you would you risk a 50k yr + bens permie job for a 6 month contract paying £1500/week for example. I know someone with that profile who has did 6 months ago and is now benched. He did not like his permie job, envied the contractors and went contract himself. It may work out for him, but at the moment there is everything to lose.

One other thing is rates. Though I was never skint as I had savings, my rate halved to £25/hr as a java dev in 2002. My total income fell by 60% in 2002 from 2001 due to bench time. More bench made it even lower in 2003, but has boomed ever since due to the SAP skills kicking in. I would say to a newbie have at least enough savings to last 1 yr is before starting out.

[thunderlizard]

Contracting has little to do with macroeconomics. The time to "jump into contracting" has much more to do with the individual than with large institutions.

Getting contracts on the scale that most of us deal with isn't about which direction budgets are heading. It's about whether you can persuade the bloke sitting across the table that you are the right man to do the particular job he needs doing.

Your client's share price might affect 20% of the price you end up agreeing. The other 80% is down to you, whether it's 2001 or 2007.

[VectraMan]

In my view it's being downplayed, just as what happened in the credit markets. To risk a steady permie job that pays the bills and maintains reasonable life style is now very great, especially for someone with a family, mortgage and wife to keep happy. If that were you would you risk a 50k yr + bens permie job for a 6 month contract paying £1500/week for example.

That's assuming that permanent means permanent. If there isn't the work, or the employer goes bust, it doesn't matter either way. You have to compare the security of guaranteed redundancy money vs. the security of a contractor earning double what he needs. The latter is probably going to amount to more.

At the end of the day, permie or contract work all comes from the same pool. Clients only pick one or the other based on availability and what suits them better, and in a downturn making a long term commitment to somebody isn't in their interests. Boomed!

I'll be on the bench in 2 weeks, but that'll be the first time in 2 years. My first serious permie job was only 3 years.

[Wilmslow]

Fantastic advice Turion. Which is EXACTLY what I have been saying. True, I may well be kissing goodbye to good money over the next couple of years, but, I am more than happy with a £45K permie contract with so called stability - ie, not having to hope every 3 months that I am strill needed. Would be nice if local, 60 miles in the morning is not a nice journey, but, the point I am making is that I am happy to go permie for the next couple of years, upskill in quality management, and see how the market is looking in 2010 or there abouts.

Only time will judge, but, as I only have 3 months money set to one side (without wanting to dip into proper savings), I feel this is the only decision I can take.

[tim123]

I've noticed what seems an increasing number of 'potential contractors' posting on this board. Most have a very casual attitude, have done little research and use words like 'wanna get into this contracting lark'.

Were you really any different?

I wasn't

tim