IT Contracting since 1993

[Martin Bank Holiday]

I got my first contract in 2002 - it lasted 6 months and then the fallout from the tech bubble hit and I was out of work for almost a year before accepting a permie job away from home that paid £10k pa less than the local job I'd quit to start contracting.

Went back to contracting in 2005 and the worst time since then was after the financial crisis where I was out for 4 months during a series of contracts paying less than £300 pd.

For my skillset, rates have picked up since then and, judging by my inbox, there's plenty of work out there so I'm reasonably optimistic though I only intend remainng in IT for another 5-8 years.

[SussexSeagull]

Got my first contract in 2009 and rates have more or less remained static since then. My worse time was after the Referendum in 2016 where I had a year out (although I suspect I would be going through that again now had a former colleague suggested me for my current contract).

Tony Blair once said he knew he was doing his job properly when more people wanted to move to the UK then move from it. The fact people don't want to come here to work should be treated as a warning sign.

[BolshieBastard]

I only went contracting in 1997. I virtually trippled my employment wage overnight even though the hourly rate was just over £30. But the 'overtime' I was allowed to work bumped up the income.

Years later, I worked with an absolute numpty who told me in the mid 90's he was on 600 a day! I was flabergasted because I thought he was lucky to still be contracting given his ineptness. Sure enough someone finally cottoned on and he didnt get renewed. He was still at it a few years ago when I last had contact with him though.

Back then, everyone was on hourly rates and 'day rate' was virtually unheard of. People didnt bother if a contractor talked about 'their manager' or used other employment terms pre 2001 and the introduction of IR35.

Eventually, the 'day rate' contract became the norm and it was the beginning of the downward trend on rates. Next up, offshoring really screwed rates downwards as clients raced to cut headline costs. They didnt care that the quality of work also went down.

Although there were always consultancies around the edges of contracting, the big consultancies moved in and again squeezed contractor rates with their turn key approach and delivery.

Towards the end I was less inclined to jump through the ridiculous hoops agents in particular were (being forced?) to bring in. During an application for a role with a large, previous client, I told the agent to go fornicate themselves when they said the jpeg I sent of my passport they needed to confirm my status 'hadnt been scanned and looked like a photograph' and I had to re do it. Sod that.

Im glad Im retired now. I used to say to colleague 5 years ago, contracting would be dead in 10 years or so. Many didnt think so but then again, some of these were permie tractors who'd never had a contract professionally reviewed etc.

I still think Im on track for that to be the case. I certainly wouldnt like to be riding the every faster race to the bottom that is contracting now, never mind the nonesense over the 'new' IR35 interpretation.

[gables]

1990-1992 was tough. Back in 1986 £150 a day was common. It was about £220 by 1989. It was then static until 1992. Then it rocketed.

This must be the only thing in my life I got the timing right :-) I was permie at DEC from 1989-1993 which is when I went contracting (the first time) until 2002 and it was fantastic. Rate rises at renewal was common otherwise you left ;-)

[canoas]

In my usual blunt fashion:
She/he's right.

Folk have been earning £400-450 a day as contractors, with 450 even being above average and median (according to itjobswatch stats), meaning year by year depreciation of money in contracting. Inflation and additional taxes have resulted in severe depreciation of the benefits of contracting. A multicultural society relies on incoming skills as it's obvious the UK doesn't have the skills it desires to keep the high-tech sector ticking alone nicely.

Only those with short term memories and/or not much skin in the game don't realise the extent to which contracting has been degraded as a profession over the decades.

You have it spot on here, rates haven't changed for over 20 years or less now IMO and you add up with inflation, living costs, house prices etc your way worse off than 20 years ago. I think one of the reasons is that some companies invested in cheap labour for example hired firms from India to come to the UK with a drastic reduction in costs not actually appearing to do a better job in most cases. But this changed rates, also the financial crisis where still to this day the big tier banks are struggling with cash flow and fines etc, they employed the most contractors in London, I remember one bank I worked 4 years in London for - Infrastructure, Developers, Security were all contractors only their bosses were full time. Go back to this bank now and I bet you there will be more full timers than contractors.

I really don't think it's going to get any better either, unless you have a very specific skill. And with the new IR35 rules coming into play, things make all that more awkward for contractors.

[unixman]

...affluent years ...so ridiculous ...was thumping strong ...exciting and fun, late night parties ...Hot Chocolate ...backpacking around Europe ...Ciao my friends!

Mate, nothing has changed. Sounds like you've just got older.

[canoas]

Poor you, having to leave contracting to live in your Mediterranean villa. Glad you managed to somehow squirrel enough away.

By no means at retirement stage! Though yes a lucky investment, Majorca property back in early 2000's was cheap as chips compared to now. I don't have a mansion!

[d000hg]

It's comes to an end! I came over to the London, UK in 1993 from NZ on my big OE, intended to travel around Europe for 2 years and work part time, well 26 years later I am married to an EU citizen (not UK), kids.....and it's sadly coming to an end. I must say the most affluent years in the UK for IT contractors were between 1993 -2001. I can remember my 1st job at Banker Trust for £35ph doing mainframe stuff. It was so ridiculous, people were getting paid £500-£800 sometimes a day for not knowing much 1996-2000 or sometimes doing little, economy was thumping strong, the city was exciting and fun, late night parties. Huge Xmas parties I remember once Swiss Bank hosted Hot Chocolate as their Xmas band with thousands of people. Tax benefits were good as a contractor. Then after 09/11 things suddenly dropped very quickly, most weren't employed but then about 2 years after things started picking up again, then dropped in 2009 in the financial crisis and have never recovered since. Sad but true!

With these stupid IR35 laws it's now for me depart, well that's the plan. To my retreat in Majorca that I've had since 2003. in my 50's now I'm going to do some remote consulting, I have a EU passport as well. I have noticed a lot of NZ/Aus/SA have left the UK. Modern world has changed no longer were the days of backpacking around Europe for a laugh and earning money as an part time accountant or a IT Contractor. They have left for the reason of IR35 and economy has weakened they are not stupid they are not coming here to be earning less money in a expensive city and they are not here to work full time. I can't see UK attracting NZ/Aus to come to the UK for what benefit? when they can go to US or Canada for way more money and way more benefits which is happening at a rapid rate, especially coming here..... now a shaky island. And Boris's points system, up yours mate!

I remember all the good times, yep they were amazing. London has changed a lot and I've spent most of my life here but it's time to get out, I can see things getting a lot worse.

And I must say Tony Blair years were the best, the economy was super strong, not saying I like him at all!

Ciao my friends!

Poor you, having to leave contracting to live in your Mediterranean villa. Glad you managed to somehow squirrel enough away.

[rogerfederer]

Tar-ra and don’t let the door hit yer arse on the way out...

In my usual blunt fashion:
She/he's right.

Folk have been earning £400-450 a day as contractors, with 450 even being above average and median (according to itjobswatch stats), meaning year by year depreciation of money in contracting. Inflation and additional taxes have resulted in severe depreciation of the benefits of contracting. A multicultural society relies on incoming skills as it's obvious the UK doesn't have the skills it desires to keep the high-tech sector ticking alone nicely.

Only those with short term memories and/or not much skin in the game don't realise the extent to which contracting has been degraded as a profession over the decades.

[Speccy]

That's truly incredible.

But we did get rid of the Fortran one over 2 years ago, so we're not totally prehistoric