Reply to: State of the current London IT Contract Market?

[oliverson]

I've been submitted for fewer roles this year than in any other in my career (30 years as a contractor). I agree with previous posters who describe the rate clients are moving at as "glacial" and the rates are way on down. I'm forward for jobs at a rate I last earned in 1996 and my expenses are a smidge higher than they were back then. War chest is gone, now selling the higher value stuff we've bought over the years just to survive. I really don't know how this is going to play out but it's not looking good right now.

I interviewed for a role with a consultancy firm 2 weeks ago - they got back to me today to tell me that I've made the shortlist to meet the client, but they won't be putting the shortlisted CVs in front of him until mid June!! And then he has to schedule the meetings and then he has to make a decision.

Most of my last 10 years was spent in the public sector and they aren't exactly overheating the phones to agencies right now. The banking world is closed to me and there doesn't seem to be much else.

When will this nightmare end?

And I thought it was just me feeling like this!

You sound burned out to me mate and in need of a change. I think you can spend too long doing the same thing. I spent 11 years in the insurance sector prior to going back to Uni and getting my Comp degree. I've now spent 11 years in IT the majority contracting. Time for me to move onto something else - use the IT skills in a different field. I can't imagine doing the same thing for 30 years. You need a change I think.

[mrdonuts]

maybe if they sent back the non eu programmers there would be some work for the locals

[DeludedAussie]

I've been submitted for fewer roles this year than in any other in my career (30 years as a contractor). I agree with previous posters who describe the rate clients are moving at as "glacial" and the rates are way on down. I'm forward for jobs at a rate I last earned in 1996 and my expenses are a smidge higher than they were back then. War chest is gone, now selling the higher value stuff we've bought over the years just to survive. I really don't know how this is going to play out but it's not looking good right now.

I interviewed for a role with a consultancy firm 2 weeks ago - they got back to me today to tell me that I've made the shortlist to meet the client, but they won't be putting the shortlisted CVs in front of him until mid June!! And then he has to schedule the meetings and then he has to make a decision.

Most of my last 10 years was spent in the public sector and they aren't exactly overheating the phones to agencies right now. The banking world is closed to me and there doesn't seem to be much else.

When will this nightmare end?

When you die - This will happen quite soon. Hang on in there

[nomadd]

I've been submitted for fewer roles this year than in any other in my career (30 years as a contractor). I agree with previous posters who describe the rate clients are moving at as "glacial" and the rates are way on down. I'm forward for jobs at a rate I last earned in 1996 and my expenses are a smidge higher than they were back then. War chest is gone, now selling the higher value stuff we've bought over the years just to survive. I really don't know how this is going to play out but it's not looking good right now.

I interviewed for a role with a consultancy firm 2 weeks ago - they got back to me today to tell me that I've made the shortlist to meet the client, but they won't be putting the shortlisted CVs in front of him until mid June!! And then he has to schedule the meetings and then he has to make a decision.

Most of my last 10 years was spent in the public sector and they aren't exactly overheating the phones to agencies right now. The banking world is closed to me and there doesn't seem to be much else.

When will this nightmare end?

Retirement?

Seriously. Surely 30 years "in the game" with some sensible planning should have left you pretty well-off by now. My planning is atrocious, but even so - and with only 23.5 years in the game - I could afford to walk away from it all if I was forced to.

Not trying to be either insulting or provocative, but I'm just a bit confused as to how you have zero warchest and are reduced to selling the family silver after 30 years contracting..?

[pastalista]

Market sucks!

I've been submitted for fewer roles this year than in any other in my career (30 years as a contractor). I agree with previous posters who describe the rate clients are moving at as "glacial" and the rates are way on down. I'm forward for jobs at a rate I last earned in 1996 and my expenses are a smidge higher than they were back then. War chest is gone, now selling the higher value stuff we've bought over the years just to survive. I really don't know how this is going to play out but it's not looking good right now.

I interviewed for a role with a consultancy firm 2 weeks ago - they got back to me today to tell me that I've made the shortlist to meet the client, but they won't be putting the shortlisted CVs in front of him until mid June!! And then he has to schedule the meetings and then he has to make a decision.

Most of my last 10 years was spent in the public sector and they aren't exactly overheating the phones to agencies right now. The banking world is closed to me and there doesn't seem to be much else.

When will this nightmare end?

[oliverson]

I've been looking for work since mid-February. I had a couple of weeks in April. The common themes that I'm seeing are:

1. Agents are pushing down rates. It's the corollary to what Chris1 said. My guess is that they're trying to get contractors to take a cut, so they can win on price and make their commission. (Anyone heard the one about finance sector contractors slumming it, and therefore I have to charge less than them?)
2. Companies are moving at a glacial pace. Last week I heard back from one where my CV was submitted a month ago. It feels much like it did in 2009, and that wasn't a good year.
3. There doesn't feel like there's a lot out there. I'm not getting as many calls as I was a week or two ago.

I'm not chasing as hard as I should right now, as there are two or three potential gigs in the banks. Normally I don't even get a look in there, so it's worth holding off on the typical "opportunities" that seem to come my way until I see how these play out.

I agree except that IMHO this is far worse than 2009. Back then I was getting plenty calls and interviews. This time around they are a lot thinner on the ground. The advertised opportunites are also thinner on the ground.

Have an interview tomorrow for a team that I actually saw back in early 2011. The rate this time around is £ 100 a day less and I've had that confirmed by a second agent who I trust.

[Graemsay]

I've been looking for work since mid-February. I had a couple of weeks in April. The common themes that I'm seeing are:

1. Agents are pushing down rates. It's the corollary to what Chris1 said. My guess is that they're trying to get contractors to take a cut, so they can win on price and make their commission. (Anyone heard the one about finance sector contractors slumming it, and therefore I have to charge less than them?)
2. Companies are moving at a glacial pace. Last week I heard back from one where my CV was submitted a month ago. It feels much like it did in 2009, and that wasn't a good year.
3. There doesn't feel like there's a lot out there. I'm not getting as many calls as I was a week or two ago.

I'm not chasing as hard as I should right now, as there are two or three potential gigs in the banks. Normally I don't even get a look in there, so it's worth holding off on the typical "opportunities" that seem to come my way until I see how these play out.

[Rabotnik]

My skills/exp are very close to yours (7 years; Microsoft BI stack), however been contracting for about 2 1/2 years now. Just started a new one today - after about 3 weeks of applying for several contracts but getting a call for interview back on only about 3 of them (I converted 2 and didn't attend the 3rd).

At the place I've started they've had the usual struggle finding the right people - they interviewed 6 people (I was the last interviewed) before picking 2. The MS BI contractor market is crowded as always - you need a really well-written CV to stand out to the agents in the first place, and aboslutely **do** call the agent in an hour or two after sending them your CV.

PS You shouldn't be assuming the role is fake if you don't get a call back; especially with the genuine agents and genuine roles, they don't really look to go through All the CVs they receive, they look to hit about 3 really good ones and then they stop, sending those on to the client. Your job is to convince the agent on the phone that you're one of those 3 - not wait for him to get to yours at the bottom of the pile.

Good luck.

Cheers mate, thanks for the advice. I actually ended up landing a contract. I am posting from the client site now

It was actually the first interview I went to. Surprised there are so many BI guys, I was hoping it was still not saturated. Thought most SQL guys were devs or DBAs. I wonder where I can branch out to. Maybe data architect, or move on to Hadoop?

[Wanderer]

Agencies take circa 20% (18% usually).

The agency I work through is on the PSL of the client and takes 7%. The client makes sure the contractors know how much they can expect so there's no funny business with the agency trying to pad their margin either.

[theroyale]

Market seems pretty dire at the mo. Have 7 years SQL Server experience (SSIS, SSAS, SSRS) and even after applying for basic roles I don't get any response. In 4 weeks I have only had 2 legitimate roles offered, everything else has been agents fishing.

Maybe this is normal, since I am new to contracting? I may have to start chasing up roles on the phone after submitting my CV, just didn't think there would be that much competition for BI roles. Usually if I don't get a response after emailing my CV I assume the role was fake (especially since I see the same roles popping up after I have applied and my CV clearly covers all bases).

Maybe agents are getting flooded with CVs for these few roles that there are.

My skills/exp are very close to yours (7 years; Microsoft BI stack), however been contracting for about 2 1/2 years now. Just started a new one today - after about 3 weeks of applying for several contracts but getting a call for interview back on only about 3 of them (I converted 2 and didn't attend the 3rd).

At the place I've started they've had the usual struggle finding the right people - they interviewed 6 people (I was the last interviewed) before picking 2. The MS BI contractor market is crowded as always - you need a really well-written CV to stand out to the agents in the first place, and aboslutely **do** call the agent in an hour or two after sending them your CV.

PS You shouldn't be assuming the role is fake if you don't get a call back; especially with the genuine agents and genuine roles, they don't really look to go through All the CVs they receive, they look to hit about 3 really good ones and then they stop, sending those on to the client. Your job is to convince the agent on the phone that you're one of those 3 - not wait for him to get to yours at the bottom of the pile.

Good luck.

[darrenb]

Thought experiment.

Take a London manager earning 80K. He has the option of hiring (a) three rubbish devs at 60K each or (b) one good dev at 90K.

1. What is the better option in terms of cost and end-product quality?
2. What is the most likely result?

[Ignis Fatuus]

So basically they wanted competent devs for the price of rubbish ones. Because, after all, the rubbish ones set the "market rates".

Astoundingly well put, bravo!

[MyUserName]

So basically they wanted competent devs for the price of rubbish ones. Because, after all, the rubbish ones set the "market rates". Well, actually they only do that in agents' imaginations.

And I'm still looking for a tenderloin steak at the price of a Big Mac.

Cannot say I know the specifics as I was not involved in anything other than a conversation on the train once but the rate they were offering was the same amounts as people who currently work at the company get with equivilant experience and skills.

It is possible that they are all underpaid there, I guess. If so, they had better keep quiet about things!

[darrenb]

My old housemate is a team leader for a company in London. They are screaming for good C# .NET developers but simply could not get them. After a couple of interviews where the interviewee was nothing like the cv portrayed they started phone screening but even that was taking up too much time as they were getting two different types of developers:

1 Rubbish ones who could not do the job and were either deluded or lying
2 Competent developers who wanted a stupid amount of money, I think they were offering 60k or so and this was what most of the people in the company of a similar position was on but people would not go for it.

So basically they wanted competent devs for the price of rubbish ones. Because, after all, the rubbish ones set the "market rates". Well, actually they only do that in agents' imaginations.

And I'm still looking for a tenderloin steak at the price of a Big Mac.

[wonderboy]

What Boo said!

Agencies take circa 20% (18% usually). That is essentially the "profit margin" for the contractor or employee (i.e. their disposable income). This makes jobs through agencies attractive only attractive to those with no other options (obviously a generalisation).

Add to that that the agency is working against your (you are the hiring company here) best interests (and for their own), Boo is spot on.

Example: the developer of your dreams and a run of the mill, mediocre developer apply to your role via your preferred supplier agency agent (the one who sends you donuts through the post, who calls you by your first name but who you have never met).

The developer of your dreams knows he is good and wants 20% more than the agents asking rate (i.e. you can afford him without an agent) - but he's open to negotiation. The mediocre developer knows he isn't good and jumps at the low-ish rate.

The agent is very busy and has 15 other roles he is looking for that very same day.

Do you think you are going to even hear a whimper about the dev of your dreams? Answer: no, you wont because firing off the CV of the mediocre developer is quicker and the agent is not going to attempt to negotiate a rate raise because you will want to know why (there is a good dev who wants to negotiate), you will then want to interview the dev, and you will then hire him because he is good - but you only have the original rate signed off, and the agent's margin is thus destroyed.

And the developer of your dreams will not get in touch with you direct to see if you will negotiate; either because your company identify has been kept secret by the agent (less likely these days in my experience), or because the agent tells the dev of your dreams that he *has* been put forward for your role (when he hasn't). So the dev of your dreams walks away thinking that he has been considered and rejected, and moves elsewhere. The agent does this knowingly to neutralise the threat of the dev going around him.

All this is if the good dev even bothers to apply for the role that is advertised at £80/day lower than the rate offered by your company.

Look - it's not that hard - advertise direct on LinkedIn or StackOverflow at the original rate before the agent took his cut and sift through a few CVs. The good ones will stand out like sore thumbs.