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Contracting in the Banking sector?

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    Contracting in the Banking sector?

    Hello All,

    I'm after a little advice if anyone has a minute to spare..?

    I've been offered a sizable contract in the banking sector and I'm wondering what life is like contracting for a bank? I'd be switching out of a great permie role with good future prospects for the fast cash, but I'm concerned that they will be taking every pound of flesh they can in return.

    Anyone got some experience? It's more specialist application support than coding based work if that's in any way relevant.

    Thanks!

    #2
    Welcome to the forums T2C.

    I'm in banking, along with a few others on here... What part of a bank are you going for? IB/treasury? Corporate/B2B? Retail? These are different environments, and each bank can vary in its working attitude towards contractors.

    Comment


      #3
      I would think very hard about this. There is no such thing as easy cash...

      You want fast cash which contracting can give you over permie but once the contract ends you are facing NO cash.. Nothing, zip, zero...

      I am guessing you havn't lurked on the forum and taken time to read alot of the posts on here. I would seriously suggest you do to attempt to balance your rose tinted view of contracting.

      I would hazard a guess you haven't taken in to account the following....

      The need or even the concept of a warchest
      Seriously analysed the risk of havnig no money for 6 months plus
      Appreciated the problems in the industry and the number of people on the bench
      The fact you need a umbrella to start of with and the complications/costs of this.
      The knowledge required to run yourself as a business not just a guy getting a crap load of cash compared to what you are getting now....

      The fact you say you are in a good job with good prospects in the market right now I would most definately tell you to stay. Many will say go for it and there have been some guys here who have switched over their first contracts but there are even more who are on the bench, looking at plan B and selling their cars etc to make ends meet.

      If you can drop the fast cash, big rates attitude then carry on looking. If the rate makes you wet yourself everytime you think of it then drop the whole thing and stick where you are IMO.....
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by Tempted2Contract View Post
        Hello All,

        I'm after a little advice if anyone has a minute to spare..?

        I've been offered a sizable contract in the banking sector and I'm wondering what life is like contracting for a bank? I'd be switching out of a great permie role with good future prospects for the fast cash, but I'm concerned that they will be taking every pound of flesh they can in return.

        Anyone got some experience? It's more specialist application support than coding based work if that's in any way relevant.

        Thanks!
        A simple one-stop answer will not be enough. You've asked a broad question but I went through something very similar a few years back, giving up a 6 figure permie package. To summarise my experience:-
        1. Look at your permie net income (after tax) plus benefits. Compare to net contract income - I worked on an annual intake of 11 months. See how much longer you would have to work as permie to earn the same as in contract role. For me it was more than 2:1, i.e. it would take more than a whole permie year to earn what I could in 6 months contracting. Work out your risk ratio, i.e. how long would the contract have to last as a minimum, to make it worth your while to leave your permie job.
        2. Banking sector experience can be like gold dust. Just search on these forums for contractors asking how they can get into it. It's incestuous - once you're in, and proven, you're in.
        3. It's not really all that tough in banks, though again it depends on which bank and what department - front, middle, back office? Make sure you get your contract covered for on-call & out-of-hours support etc.
        4. Banks are being propped up and will be one of the first sectors to come out of the recession.
        5. Permie jobs in banks can pay well but roles and career paths are often dull
        6. Permie jobs in banks are often about the money. Contracts in banks are always about the money.
        7. Work is often dull, repetitive and skill-killing. You will need to push to learn something new.
        8. Social life in the City is . Travel is a though.


        Can't say I know much about application support, but it depends on the bank and the application I guess. Much of our support is being shipped off to Bollywood. However, if you're specialist then you might stand a good chance of a decent long term contract.
        Last edited by ChimpMaster; 18 March 2010, 10:39.

        Comment


          #5
          Totally WHS and come good points..

          Banking sector experience can be like gold dust. Just search on these forums for contractors asking how they can get into it. It's incestuous - once you're in, and proven, you're in.
          I would raise a warning here that I don't think it is as fantastic as this makes it sounds. Yes you are more favourable due to the previous experience, just like if you get in to Pharma or Oil/Gas but it certainly is not a give at this point in time. It isn't something for you to take as verbatim and start eyeing up your dream car Porsche.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by northernladuk View Post
            Totally WHS and come good points..



            I would raise a warning here that I don't think it is as fantastic as this makes it sounds. Yes you are more favourable due to the previous experience, just like if you get in to Pharma or Oil/Gas but it certainly is not a give at this point in time. It isn't something for you to take as verbatim and start eyeing up your dream car Porsche.
            You had some good points too, and all valid. Indeed the Warchest is paramount. A contract (banking or otherwise) is not a pass to go out and buy your dream items. For example -

            I've been contracting in banks for many years now and I still don't have a fancy car, though I've always wanted one. Why? Because I wanted my mortgage paid off, then some investment properties, then some ISAs, then some savings, then the wife wanted a new kitchen - which turned into a house extension. Then a flat abroad. Oh and I would only drive occasionally parce que I work in a big City.

            I used to wonder why only old men were seen driving dream cars. Now I know.

            Comment


              #7
              Did the same 2.5 years ago.

              I left my perm role early 2007 with nothing to go to and it took me 3 months back then to get my first banking role. Scary but gave me the time to put my efforts into looking. Currently in my 3rd year at the same place.

              It was something I had been considering for years, and had read an absolute shed load of information about contracting, running the company, HMRC, Liability insurance, VAT, Pensions the list goes on and on. Ensure you are as fully informed as you can be.

              READ THE CONTRACT, contract duration (min 6 pref 12 months in first instance, they can still drop you though), notice periods, rates, the small print.

              Work environment depends alot on the manager who hires you, as their work ethic varies immensely. There are managers where I am currently who work 16 hours a day and more sometimes!!!, and expect the same from their staff including contractors, would be good on an hourly rate though. :-).

              I have been fortunate as my manager has a better/work life balance and generally I work 8-5, occasionally it goes pear shaped and I'm in til late/early.

              The money is good, although had to take a 15% cut 16 months ago, but as previously mentioned be aware they can dump you in an instant with no redundancy cushion. Build "a warchest" for at least a years living, not as bad as it sounds.

              Best of luck if you decide to go for it.
              Never has a man been heard to say on his death bed that he wishes he'd spent more time in the office.

              Comment


                #8
                Originally posted by northernladuk View Post
                I would think very hard about this. There is no such thing as easy cash...

                You want fast cash which contracting can give you over permie but once the contract ends you are facing NO cash.. Nothing, zip, zero...

                I am guessing you havn't lurked on the forum and taken time to read alot of the posts on here. I would seriously suggest you do to attempt to balance your rose tinted view of contracting.

                I would hazard a guess you haven't taken in to account the following....

                The need or even the concept of a warchest
                Seriously analysed the risk of havnig no money for 6 months plus
                Appreciated the problems in the industry and the number of people on the bench
                The fact you need a umbrella to start of with and the complications/costs of this.
                The knowledge required to run yourself as a business not just a guy getting a crap load of cash compared to what you are getting now....

                The fact you say you are in a good job with good prospects in the market right now I would most definately tell you to stay. Many will say go for it and there have been some guys here who have switched over their first contracts but there are even more who are on the bench, looking at plan B and selling their cars etc to make ends meet.

                If you can drop the fast cash, big rates attitude then carry on looking. If the rate makes you wet yourself everytime you think of it then drop the whole thing and stick where you are IMO.....
                WHS in a nutshell.
                I couldn't give two fornicators! Yes, really!

                Comment


                  #9
                  Originally posted by ChimpMaster View Post
                  You had some good points too, and all valid. Indeed the Warchest is paramount. A contract (banking or otherwise) is not a pass to go out and buy your dream items. For example -

                  I've been contracting in banks for many years now and I still don't have a fancy car, though I've always wanted one. Why? Because I wanted my mortgage paid off, then some investment properties, then some ISAs, then some savings, then the wife wanted a new kitchen - which turned into a house extension. Then a flat abroad. Oh and I would only drive occasionally parce que I work in a big City.

                  I used to wonder why only old men were seen driving dream cars. Now I know.
                  LOL. well my experiences are a bit different.. got in to banking for 8 months and got walked off with every other contractor. got into telecoms and pharma and nothing much more than a short extenstion. the fact i got in to all these and was not 'in for life' in any has slighty jaded my opinion. Have just been very unlucky but it does happen.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    I only partially agree with some of the comments above. But especially around 'easy cash'.

                    Contracting offers a number of positive steps. Firstly on the whole it pays considerably more than permanent work & take home can be considerably greater. It provides much greater flexibility & the opportunity to invest time & money in other areas, because disposable cash is greater. This of course is all based on whether you can get a contract.

                    It also depends on the your view of a good job. When I started in 96 I was a couple of years out of UNI, earning £28K with a company car. My first contract year out I doubled that, and took a much greater proportion home, by my second year I was at £100K.

                    There is no way, no way I could have done that from a permanent position.

                    But that was end of the 90's, the market was different to now, the ratios of perm to contract are lower and taxation closer.

                    To me contracting is 'easier cash' if and only if you have good marketable skills. Banking is a holy grail, it likes SC. Once in, you're likely to stay in.

                    So my answer would be, it depends on how you measure how successful you fell you are now in terms of money, stability and flexibility to how you would be if you took the contract and the 'easier money' versus the lack of stability in a rough market.

                    Only you would know, but dont let anyone put you off, I dont know a single contractor who ever regretted making the jump.
                    What happens in General, stays in General.
                    You know what they say about assumptions!

                    Comment

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