Results of the public sector consultation is up

[seeourbee]

To the KPMGs of the world this won't be expected. There are loads of large government projects that don't involve digging holes.

I think the doom and gloom is for the PSCs rather than consultancies.

[Whorty]

I find those who say they might go back to permie strange. Surely the reason for contracting more than the extra cash, and let's face it, even if we all get caught in IR35 going forward we'll still be financially better off than a similar perm role. Plus, admitting you'd rather go back perm, isn't that just admitting that what you do is really a perm job?!?

My reasons for contracting include less (never none unfortunately) politics, no appraisals, no company 'all hands' tulip, no sucking up to the boss to get a payrise/promotion. The extra cash is an added bonus but not the main driver for me.

My day rate taxed fully as a permie is still more than I'd get as a permie even with the benefits. Admittedly I'm happy working 6-9 months a year so a few months on the bench is planned rather than a chore as I have no mortgage and little expenditure, but I understand others may not be in the same position.

No one likes paying extra taxes, but we've had a good run and we still have a better life than permies

It's also a Friday night and I'm 3 large glasses of red to the good, so the world is a great place

[b r]

I think the doom and gloom is for the PSCs rather than consultancies.

Agree.

The Scottish Govt comment came though my OH who contracts for them.

We had a long discussion last night and while both of us prefer contracting and not just for the money, both been 'older' - it means that we just don't have to get involved in all the politics, HR and internal crap.

But we can't see a way out as medium term (3 years) been a contractor is going to be both not worth it AND just too much trouble, even in the private sector. Start up a consultancy maybe?

[SueEllen]

Just heard, one of the larger Professional Services firms has been told by the Scottish Govt that they won't accept them employing contractors to work on any of their contracts from April 2017 - they'll need to employ them instead.

Happening elsewhere?

Good luck with consultancies finding these mythical people.

Consultancies down in England and Wales have been advertising for years for permies to take roles on projects where the end client is the public sector. As they can't find people with the required skills who want to be employed by them, especially in some locations, they have to hire contractors.

[Cirrus]

Consultancies down in England and Wales have been advertising for years for permies to take roles on projects where the end client is the public sector. As they can't find people with the required skills who want to be employed by them, especially in some locations, they have to hire contractors.

I worked for HMRC in Telford via Capgemini. I joined as a permie. I was fed up being a contractor - always getting the problem projects right when they've turned into a bloodbath; never included in any strategic elements.

Predictably I didn't care for permiedom (more specifically the toxic wasteland known as the Aspire Contract) and left after a year. But I made a shed load of cash, even with having to rent a flat out of my own taxed pocket. From that one year I have a £23000 Capgemini pension pot.

They were charging me out a touch over £1000 a day so there was plenty of scope to give me a fat salary, bonus, pension etc etc

If more work comes their way because of IR35, the SIs will be out there waving their cheque books, no problem..

[b r]

They were charging me out a touch over £1000 a day so there was plenty of scope to give me a fat salary, bonus, pension etc etc

This.

My OH has just had a conversation with an equivalent company, money (to a point) isn't a problem - as above plus probably because the PS know they've been put in a corner (by themselves).

[sal]

I find those who say they might go back to permie strange. Surely the reason for contracting more than the extra cash, and let's face it, even if we all get caught in IR35 going forward we'll still be financially better off than a similar perm role. Plus, admitting you'd rather go back perm, isn't that just admitting that what you do is really a perm job?!?
~snip~

You are missing one major factor, very impactful for many contractors - expenses. Paying full tax on your day rate might leave you with more cash than a permie, but probably 1/3 of the contractors working in London are either long distance commuting or staying over for the week at the cost of £10k+/year and countless hours away from family. When you compound all this and the extra tax, you can see how permiedom close to home becomes the better option for many.

[MrMarkyMark]

FTFY

Predictably I didn't care for permiedom (more specifically the toxic wasteland known as the Aspire Contract) and left after a year. But I made a shed load of cash, even if it was a budget level shed compared to the one I earned for Capgemini

[northernladuk]

You are missing one major factor, very impactful for many contractors - expenses. Paying full tax on your day rate might leave you with more cash than a permie, but probably 1/3 of the contractors working in London are either long distance commuting or staying over for the week at the cost of £10k+/year and countless hours away from family. When you compound all this and the extra tax, you can see how permiedom close to home becomes the better option for many.

Which is great. Those that really can't cut it will be off the market leaving the way open for people that can do it properly. But I don't think many will either.

[bobspud]

Good luck with consultancies finding these mythical people.

Consultancies down in England and Wales have been advertising for years for permies to take roles on projects where the end client is the public sector. As they can't find people with the required skills who want to be employed by them, especially in some locations, they have to hire contractors.

For years the business model for most of the consultancies has been get as many cheap permanent resources on site at the maximum day rate to the client and then find some contractors to actually do the work. Its been very rare that I have seen the permanent guys do anything other than get in the way and take a spare seat.

So when the contractors flee it won't just hurt the direct government reports.