 |
|
| CURRENT SECTION :: News | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
|
 |
A growing number of IT employees are taking better paid freelance jobs by claiming the skills they have been continually employed for qualify them as a specialist. In the light of today’s economic uncertainty, they rightly realise that organisations will look on flexible contract hires more favourably than taking on new employees. Warnings by jobs agency Robert Walters that permanent IT hires face a downturn in 2008 add to their suspicions that freelancing is, or will become, the safer option. When candidates with no freelance history talk to an agent they are much more likely than they were a year ago to want contract roles, three IT agents confirmed yesterday. “This is a bit of a reaction to the financial market as a whole,” said Paul Elworthy, a director of banking and financial IT recruitment at Hudson. “We are seeing financial institutions taking stock of their IT headcount, in light of the turmoil. They are being more cautious in terms of hiring, not too dissimilar to five or six years ago.” Coupled with fears of layoffs, the candidates reacted by “keeping their options open” so if “historically they just went for permanent IT jobs, they are now looking for contract jobs as well.” This is understandable, said James Parker, IT contract manager at Robert Walters, because IT skills command much more money on the freelance than the permanent jobs market. “The rise in the number of new IT contractors is all linked in to the [economic] uncertainty over the next 12 months,” he said. “IT staff are perceiving the contract market is going to be more buoyant than the permanent market, which I would agree with.” He explained that organisations are now more inclined to fill a vacancy with an IT contractor because of the “flexibility” such staff afford in the event of a steeper downturn. Although the influx of new contractors has not forced existing contractors into rate cuts, the wider downturn is “starting to squeeze” pay, particularly at investment banks, Hudson said. “There are rumours around about sweeping rate cuts similar to five or six years ago,” Mr Elworthy added, pointing to the City . “Overall, we are starting to see the economic turmoil squeeze contractor rates, for new hires, while clients are also looking [at] how they can justify reducing the cost of [existing] contractors. So while the faltering economy may be exerting a downward pressure on some freelance rates, especially those tied to ‘softer’ IT skills, the new entrants are yet to add to the drag. “Generally we find established IT contractors stick to their rates,” Mr Elworthy said. “I don’t necessarily think a perm has any advantage over a contractor… clients know they get what they pay for and I don’t think contractors should feel they need to drop their rates immediately, but they must be realistic and look at what the market is paying.” Full-time candidates the likliest to ‘go freelance’ are mid to senior-level IT workers who have long-served in a specific role, typically in technical areas around development. “Demand for IT contract staff is still strong as rates are increasing month on month,” said Sid Barnes, a director of Computer People, delivering the most positive view of the current climate. “For technical professionals, it [contracting] is in many cases the next step in their personal development, [as it]… allows them to specialise and carve a niche for themselves. “In permanent positions there is often a ceiling and less variety and this is not the case in the contracting world.” The agency’s database reveals that experienced contractors with technical skills are enjoying increased pay as the developer pool has narrowed, as many are locked into longer-term roles. It shows, in contrast, that IT contractors with ‘soft’ skills and generalist skill sets have seen a decline in the number of vacancies and “stagnation” in levels of demand. Yet, overall, recruiters believe contractors are better-placed than their directly employed counterparts to weather the economic storm, partly explaining the estimated 10% rise by one agent in freelance interest from IT employees. “Whenever we see this perceived downturn in the market, it’s always good news for our contract business and not such good news for our permanent business” Mr Parker testified. “We find our IT contractor business comes out of these downturns in a much stronger position than when we go into them.” Apr 9, 2008 Email this article Printer friendly page Previous Page
|
|
   |
||||||||||||||||||||||||
| All content © Contractor UK Limited | http://www.contractoruk.com/lists/?p=subscribe&id=1[Register for News Letter] | [Privacy Statement] | [Terms of Use] | [Top of Page] |