Rates up, are we back on the right track?

[Damon]

There's also plenty of people contracting now because they were crap permies.

Barriers to entry are lower so less quality entrants come to the market

[Project Monkey]

There's also plenty of people contracting now because they were crap permies.

[d000hg]

Surely with the fast changing nature of technology there is a constant demand for the latest and best?

Yes, but not everyone all the time.

[NorthWestPerm2Contr]

In the 1990's companies were introducing the systems that saved them millions. Money was no object.

If you save 10 million per year on a project with 5 or 6 people you could pay them a mill each and it' still worth doing.

In those days they had paper and then they would get a system that did away with an army of clerical staff.

These days it's mainly maintenance, so there's no stomache for high rates.

Surely with the fast changing nature of technology there is a constant demand for the latest and best?

[Damon]

IMO this is basic market/product maturity curve:



At first the early adopters make the money on the up curve, then the barriers to entry come down and competition increases and commoditisation comes in and it moves from be a differentiator market to volume based. People have stopped getting contractors at Waitrose as they can now get them at Aldi.

Ergo there are more people doing it, rates are squeezed and the recruitment agencies have become telesales agents as they don't need to differentiate.

And overall industry profits are down.

[BlasterBates]

In the 1990's companies were introducing the systems that saved them millions. Money was no object.

If you save 10 million per year on a project with 5 or 6 people you could pay them a mill each and it' still worth doing.

In those days they had paper and then they would get a system that did away with an army of clerical staff.

These days it's mainly maintenance, so there's no stomache for high rates.

[NorthWestPerm2Contr]

I think there are also lower barriers to entry into IT now. Specialise or die, my friends.

Indeed.... Generic skills ain't gonna get you anywhere.

[Old Greg]

Isn't it just that there are more contractors and therefore more competition for gigs which pushes rates down?

I think there are also lower barriers to entry into IT now. Specialise or die, my friends.

[MyUserName]

Back then I think use of contractors was not as widespread as it is now?
So I wonder whether this was correlated with the standard of contractors, on average, being higher than it is now. In other words there are contractors now who would have been permie then because they were crap.

Isn't it just that there are more contractors and therefore more competition for gigs which pushes rates down?

[KentPhilip]

IT contractor pay rises topped 20% in 2013 :: Contractor UK

Back in the 90s contractors earned significantly more in real terms than they do now.

Back then I think use of contractors was not as widespread as it is now?
So I wonder whether this was correlated with the standard of contractors, on average, being higher than it is now. In other words there are contractors now who would have been permie then because they were crap.

[Damon]

IT contractor pay rises topped 20% in 2013 :: Contractor UK

Not sure if it has been mentioned yet.

Back in the 90s contractors earned significantly more in real terms than they do now. Are we back on track and will we ever get back up to near those levels?

I did manage to make a big jump in rates myself but that was probably more down to the location, time of year and industry than anything else....

It's a worrying trend!

[Old Greg]

IT contractor pay rises topped 20% in 2013 :: Contractor UK

Not sure if it has been mentioned yet.

Back in the 90s contractors earned significantly more in real terms than they do now. Are we back on track and will we ever get back up to near those levels?

I did manage to make a big jump in rates myself but that was probably more down to the location, time of year and industry than anything else....

Ask psychocandy.

[NorthWestPerm2Contr]

IT contractor pay rises topped 20% in 2013 :: Contractor UK

Not sure if it has been mentioned yet.

Back in the 90s contractors earned significantly more in real terms than they do now. Are we back on track and will we ever get back up to near those levels?

I did manage to make a big jump in rates myself but that was probably more down to the location, time of year and industry than anything else....