Good time to do it?
Currently a permie business analyst and may have the opportunity to go contracting doing the same thing for a different company but one I used to work for as a permie.

Now ignoring pros/cons of business analysts you guys out there already contracting in IT, how is the market currently? Would you advise doing it now or waiting a bit for the world to calm down a little? Currently get around £50k pa basic as a permie which I am not unhappy with however working amongst lots of other contractors (who have done it for years and years) it seems that the going rate would give me approx £6k net a month assuming I was working.

Thoughts/opinions?

 

Not if you're in London. With the demise of quite a few banks in the city, the first to go are usually IT contractors and currently there are now many looking for work. I would stay where you are for the moment. With the fact that many firms, not just in the finance sector, are shedding staff and cutting costs, contracts would be few and far between and only short term. With many others competing for the same job don't assume you'll be paid £6k net per month and over supply will result in reduced rates. Add to that there will be months where you may not get paid at all.

 

I'm in a niche role, 6 monther in central London, likely to go 12-18 I reckon. My old permie companu desperate for me to go back with them as they have more work than they know what to do with.

Go limited and save what you can foir a rainy day. There are many advantages to it other than just the money. No friggin' appraisals for one

 

Well I have only just gone and bliming done it!!
Start a 6 month contract at the end of this month, obviously slightly worried about the whole economic thing but thought since the offer was there why on earth not try it. Might be the most silly thing I have ever done (being somewhat risk averse) or alternatively the best thing I have ever done. Working for a major life office near Reading, some days really looking forward to it whereas other days scared sh1tless.

 

"No friggin' appraisals for one"

"We're not renewing your contract."

 

Congrats fella

 

Not a good time to go contracting tbh, im glad I got out of the telecoms market 2 years back and got a permenent job with a little more security
Just looking at the last company I was working for, they outsourced most of their IT work to India and its still happening, so id do more saving than anything, its a very volitile market at the moment and the first people to go are the ones that cost the most, ie the contractors.

Tony

 

Not necessarily the case, contractors can be employed because there is a requirement for skills permies don't have.

 

Missing the money, but not the uncertainty !

 

I think it's a reasonable time to go contracting if you have good skills. There is always demand for quality candidates. If you are just a commodity skill - Windows support, then you may have to look longer.

There is also some evidence than contractors are more popular in a downturn, companies want a flexible workforce and don't want the long term liability of a permanent worker.

And anyone who thinks a permanent role has more security is deluding themselves.

 

True but its better for mortgages and loans, oh wait..... hum

 

Will you be forced to use the contracting companies umbrella co? If so IR35 could come and bite you in the *** big time. If yes then you will need to get your contract to an IR35 advisor who will give you an idea of how protected you are.

If no, then you will need to set up your own LTD company and register for VAT and make good use of the companies tax situation at the moment.

Get ready for lots of expenses, plenty of paperwork and remember that everything that you used to get for free will now cost you, pension, holiday, cars, days off sick, proff indemnity insurance etc etc.

Unless you are going to earn a LOT more then I would not risk it right now. I know some guys who are on £400+ a day, their perm counterparts are on maybe 40k. So its a good move. But I also know some people who are on more like £250 per day, which after you take out the above its not worth it IMHO.

Also, how quickly could you get another perm job if it went **** up?

Look at the risks, if its too risky then I would stay as you are till things settle down.

 

Thanks folks for the comments and advice, aware of what I now need to fund and my day rate is enough to justify it (at least I think so) as the take home will be around 125% higher than when I was a permie. Doing it via my own company to maximise my earnings but will be using an accountant, at least in the short term.

If it goes **** up as you say my current employer has already inferred that I should reapply to them so to me I think the risk is worth it, if the contract was only £250 as you say then that would be a different set of circumstances and I don't think financially worth it.

I have always been permie and this just came along, being honest I am bricking myself about it all working out but I have a few quid behind me to cover my mortgage if I don't work for as long as I expect, clearly a risk but I thought worth giving it a go rather than always looking back wondering 'what if.....'. I will tell you better in 3 months if it was the right thing to do!!