contractors

liven

Why so many companies use them?

They cost more and have way less of a sense of loyalty than full timers.

Now if there is just a project to be done I understand. But if it is for a regular position then what is the point? I also understand the try before your buy attitude... But seriously I just don't understand why it so prevalent in the industry?

No other industry has so many contractors.

I don't see how companies can save money in the long run doing this.

In fact I know that wachovia bought a contracting company and brought them in house. I spoke to some of these recruiters and they told me by doing this they can save money, offer higher salaries and make more money for the company. Now I know they are bank and banks are struggling but this was before the big credit bust.

I hope that this is going to become a trend in the industry. I am just getting tired of so many of the recruiters not having a clue about what they are talking about. Almost every job I have taken or interviewed for has been completely miss represented by the contracting company. Now I have learned to ask my questions, and learned not to trust anything but what I hear with my own ears.

The only thing I can think of is that companies don't have time to look for the IT staff that they need.

nel

Yeah i know what you mean. It seems to me if companies hire contractors for long term periods and not just for a rollout project or something then its usually so they can get rid of them when they feel like it. i think this applies across many industries and not just IT.

There is a big car manufacturer where i hail from who are pretty notorious for this even though its probably the best car production plant in europe!

laidbackfreak

ive worked as a contractor on and off for 10yrs now......

its a two way street.... a couple of the fimrs ive worked for use contractors (and not jsut IT) as a way of keeping there head count down and it is cheaper (at least here in the uk) cos even tho the contracotr may be on a higher rate than usual... they dont incur any of the other overheads that a company has to bear when taking on staff......

lots of reasons but there's a couple for you......

LarryDaMan

Contractors are cheaper in the long run. Hiring contractors can make it easier to hire/fire/change people and positions. A contracting firm assumes some liability for workers and work performed, usually has a SLA which guarantees a certain level of service, and reduces overhead for the main company.

Many reasons.

dynamik

liven wrote:

The only thing I can think of is that companies don't have time to look for the IT staff that they need.

Maybe they feel they lack the experience and knowledge to determine which candidate is qualified.

nel

The only thing I can think of is that companies don't have time to look for the IT staff that they need.

Isnt that the job of a recruitment agency?

laidbackfreak

nel wrote:

The only thing I can think of is that companies don't have time to look for the IT staff that they need.

Isnt that the job of a recruitment agency?

it is when you find a good one....... worth there weight in gold..... ive spoken to loads in teh past who dont have a clue what there talking about and just put you forward for almost anything....

famosbrown

government uses contractors A LOT!

They are usually more skilled and have the degrees and certs that the government is paying for. government/companies can also renegotiate contracts on a yearly or whatever period to change their needs for personnel, for instance, requiring them all to be MCSE, CCNP, CCISP, etc. Medical and other benefits are on the contractor company. Sometimes the contractors have agreements that they must must work at least 50 hours before they collect any overtime. contracts could read that all equipment supported by the are the sole responsibility of the contracting company, etc.

I could go on...there are so many pros for a company to utilize contractors. Without going through unions, legal, etc. it is pretty hard to begin changing stuff like what was said above for permanent employees.

MCPWannabe

liven wrote:

Why so many companies use them?

They cost more and have way less of a sense of loyalty than full timers.

Now if there is just a project to be done I understand. But if it is for a regular position then what is the point? I also understand the try before your buy attitude... But seriously I just don't understand why it so prevalent in the industry?

No other industry has so many contractors.

I don't see how companies can save money in the long run doing this.

In fact I know that wachovia bought a contracting company and brought them in house. I spoke to some of these recruiters and they told me by doing this they can save money, offer higher salaries and make more money for the company. Now I know they are bank and banks are struggling but this was before the big credit bust.

I hope that this is going to become a trend in the industry. I am just getting tired of so many of the recruiters not having a clue about what they are talking about. Almost every job I have taken or interviewed for has been completely miss represented by the contracting company. Now I have learned to ask my questions, and learned not to trust anything but what I hear with my own ears.

The only thing I can think of is that companies don't have time to look for the IT staff that they need.

Working with Contracting companies is just one of those things. If you really focus hard on improving your skills and keeping them updated, at some point you will probably go into business as a consultant for yourself -- that's what most of the accomplished guys seem to do.

But until then, it's not all the way bad. I work as a contractor now and I love it. I'm free to contract with other companies on the side and I get a lot of time off.

One recommendation that I would make about contract companies to is to make sure that you always leave them more marketable than you were when you first started. In my case, my contractor is sponsoring my MCSE and MCT.

This was something that I asked for. I told them that due to the uncertainty within contracting, I didn't feel comfortable accepting anything unless they agreed to sponsor me while I furthered my skills. They agreed on the condition that I sign an agreement saying that if I quit within the first month, I'd have to repay the sponsorship fees.

It was an easy decision, and this is easily the best job that I've ever had.