UBS Rate Cut

[BolshieBastard]

A lot boils down to principle. Do you want to be treated like a dog (or worse) by swallowing a rate cut and moaning about it or grow a pair and stand against it?

Clients know the majority of contractors tulip the bed at the thought of having no income for a while. So guess what? They cut the rate because they know most will accept it.

And cutting rate in the run up to Christmas when the market can be slack is just cynical and highlights what they really think you are worth.

Its the old addage, accept it and they'll continue to do it. Stop accepting it, publicise the client who do it, stop taking on work for them and they'll stop cutting.

[TykeMerc]

Clients know the majority of contractors tulip the bed at the thought of having no income for a while. So guess what? They cut the rate because they know most will accept it.

Its the old addage, accept it and they'll continue to do it. Stop accepting it, publicise the client who do it, stop taking on work for them and they'll stop cutting.

Which of course is worthless unless a significant proportion of contractors adopt the same approach, the clients know that would require organisation and cooperation which don't exist. They've done this rate cut routine for several years and know they can get away with it, but you know that better than me since I've not worked in the finance sector in a decade.

[BolshieBastard]

Which of course is worthless unless a significant proportion of contractors adopt the same approach, the clients know that would require organisation and cooperation which don't exist. They've done this rate cut routine for several years and know they can get away with it, but you know that better than me since I've not worked in the finance sector in a decade.

That's my point. Everyone has to stand firm. Contractors need to stop being pussies.

In any event, the cheaper option is frequently also the inferior option.

[SussexSeagull]

Aren't all these 10% rate cuts beginning to accumulate and make IB contracting less competitive, especially when you take into account the long hours and stress people go on about?

Note I have never worked in the sector so am only going on what I have heard.

[yasockie]

Aren't all these 10% rate cuts beginning to accumulate and make IB contracting less competitive, especially when you take into account the long hours and stress people go on about?

Note I have never worked in the sector so am only going on what I have heard.

To me, the main source of stress is the 10% rate cuts, or prospects of such
The trend to outsource to a cheap labour hasn't stopped, the banks are still trying to bring cheap bodies whatever way they can.
We've all seen how it ended when a bunch of untrained, unqualified devs developed a system for one of the institutions.
Doesn't seem to be bothering the other guys...

[ChimpMaster]

To me, the main source of stress is the 10% rate cuts, or prospects of such
The trend to outsource to a cheap labour hasn't stopped, the banks are still trying to bring cheap bodies whatever way they can.
We've all seen how it ended when a bunch of untrained, unqualified devs developed a system for one of the institutions.
Doesn't seem to be bothering the other guys...

Exactly this.

I contracted in the city for a few years until there was a huge influx of insourced cheap labour and offshoring of work. There were rate cuts but more often than not there was simply contractor-culls. A decent UK contractor was being replaced with up to 5 or 6 offshore staff. They couldn't always find offshore staff so then they tried near-shore (Europe), which I understand also didn't pan out too well. I don't know who's idea it was but no doubt pockets were lined because I cannot fathom how it was working out financially better to have multiple inexperienced staff at different offices in India and in Europe - certainly it was worse for the business and for operations teams.

Yes I was very sad, and even bitter, about what I saw happening around me - good people being pushed out for cheap, inexperienced labour that wasn't capable of performing anywhere near to the same standard. And it wasn't even cheap in the end, it was more expensive.

But I left a few years ago and I honestly don't see myself going back. The rate cuts, the offshoring, the stigma attached to freelancers - it exists more in the City than I have found anywhere else. I find you can earn a more decent wedge and gain more respect almost anywhere other than the City now.

[Underscore Pt2]

Aren't all these 10% rate cuts beginning to accumulate and make IB contracting less competitive, especially when you take into account the long hours and stress people go on about?

Note I have never worked in the sector so am only going on what I have heard.

Not really... if you leave then come back a few months later you can pretty much always get a better rate.

[SussexSeagull]

Not really... if you leave then come back a few months later you can pretty much always get a better rate.

Fair enough then. The randomness of UK business at times never ceases to amaze me.

[AnthonyQuinn]

A lot boils down to principle. Do you want to be treated like a dog (or worse) by swallowing a rate cut and moaning about it or grow a pair and stand against it?

Clients know the majority of contractors tulip the bed at the thought of having no income for a while. So guess what? They cut the rate because they know most will accept it.

And cutting rate in the run up to Christmas when the market can be slack is just cynical and highlights what they really think you are worth.

Its the old addage, accept it and they'll continue to do it. Stop accepting it, publicise the client who do it, stop taking on work for them and they'll stop cutting.

You are in a business. your client does not pay what you think your services are worth. if the said services can be sold to another client then walk. Else suck it up and your principle with it. YOU ARE A BUSINESS. NOT AN EMPLOYEE WITH A TRADE UNION.

[BolshieBastard]

You are in a business. your client does not pay what you think your services are worth. if the said services can be sold to another client then walk. Else suck it up and your principle with it. YOU ARE A BUSINESS. NOT AN EMPLOYEE WITH A TRADE UNION.

Are you pissed or just cannot quote the correct poster!?

Read what I posted numpty.