Pulling the trigger ... Permanent > Contract

I keep getting calls for contract positions and they seem to be well paid. Setting up a limited company is the easy part I think, but signing up for only 3 months at a time, another.

Who did do this jump and do you regret it ?

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Comments

Iristheangel

At my last job, I started out as a contractor with a possibility of becoming a FTE later on. After 8 months of the stress of being a contractor without any job security, they brought me on board and I stayed for a year and a half.

It's always a gamble but it can be great for opening possibilities and gaining experience.

N2IT

Agree with Iris

I think if the risk is worth it go for it.

the_Grinch

I've often thought about doing contract work as I tend to get very bored after 6 months or so. Pay is usually pretty good due to the the usually limited amount of time on the contract and as Iris said, you'll definitely get some experience. The big thing that comes into play is health benefits (though you're in the UK so that probably isn't an issue). In talking to the the contractor a work, seems there are a lot of places now that you can get health benefits through without a hassle. Also, he gets paid weekly compared to my monthly check. I'd say ultimately, you really don't have anything to lose

worse case you do a contract, hate it, and find a perm job. Good luck!

dave330i

Are you referring to forming your own company and working as a contractor or working for a contract/service provider? I've worked for a contractor/service provider for most of my career (ME & IT). They were all long term contract, so I had full benefits & better pay. Only downside is contractors get laid off first.

drkat

@OP

I did contract work from 2005-2008 - it's good money, flexible and challenging... but they can call you at anytime and say dont come in ... contract is over early. The employer also looks at contractors differently. YMMV, but it's a gamble.

bigdogz

Some contracts at bigger companies are renewed every year. There are a great deal more of contract jobs that are 3-6 months and they do pay better because it is a short period of time. I know of a customer who hired a guy for a 3 month contract and almost a year later he is still employed. They decided not to hire him but in the meantime he is collecting those nice contract checks

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If you do decide the contract route you may want to save up some money in case the contract expires and there is no work in between jobs. This may help relieve your stress as well.

tpatt100

I think "contract" work is many different things. I was a contractor for years supporting government. I knew I was a contractor and not a government employee but I worked for a defense contracting company. There are pros and cons though. There is always the fear of "will my contract be renewed this year?" but then again even as a permanent employee there is no guarantee if you will have a job at the end of the year also. Usually contractors fill roles that are needed but if they are filling roles that a company doesn't want to hire directly but they already have some of the roles filled by permanent employees, come lay off time you will probably be let go before the permanent.

Iristheangel

OP, I would recommend consulting as well if you are comfortable with your skills. My last job had a flurry of Citrix, security, and networking consultants. I didn't know what the other consultants were getting paid but I know for a fact that each of the top-tier Citrix consultants were getting $15K per a week of work (44 hours). Consulting is a little harder because you have to find the clients but the profit is all yours.

dave330i

Iristheangel wrote: »

OP, I would recommend consulting as well if you are comfortable with your skills. My last job had a flurry of Citrix, security, and networking consultants. I didn't know what the other consultants were getting paid but I know for a fact that each of the top-tier Citrix consultants were getting $15K per a week of work (44 hours). Consulting is a little harder because you have to find the clients but the profit is all yours.

That's pretty good. Maybe I was too quick to reject a VMware architect consulting role.

jmritenour

I guess it depends on your situation in life. I'm the sole income provider for my family, so it would have to be bordering on a ridiculous salary for me to seriously consider taking a contract gig.

Salary aside, my benefits are great - I've got one of the best PPO plans I've ever seen, at a very cheap rate. That counts for a lot, and I'd probably have to spend a good 15-20,000 a year out of pocket to get anything close.

I'd maybe do the consulting thing at some point, but that's several years in the future for me at the very least.

jibbajabba

Working as contractor I mean having my own "company" .. Whilst working for a Service Provider gives you a better security, they are making a LOT more money you could cash in yourself. Plus - income tax is about 40% at that point where corporate tax is 26% here (I think) ... Give yourself a low salary and dividents - works out a LOT better than working for a provider.

I did some checks with account monkeys and basically if you contract for 350-400 per day, you'd have to earn roughly 100k on a permanent role to make a similar net income - 100k in IT ? Unless you are management, not gonna happen (here in the UK in "£" that is).

As for consulting - do you mean as your own company ? Hard .. a LOT harder than working as a contractor .. Getting your foot into the door as individual is almost impossible unless you have good connections.

Here in the UK a lot of consultancy firms offer end to end services which you can't do as individual .. You'd rely on companies just asking for advise and nothing else - I doubg nowadays they'd pay you for that - they could get that sort of advise from the vendor ..

Iristheangel

In the US, some contracting companies pay benefits such as 401K and health insurance if you are working 40 hours a week. It's just the lack of job security that I see as the big issue. If your skill set is good enough, this will be a non-factor as you'll be able to jump into other contracts if one should fail.

It definitely is harder than working as a consultant but a LOT more profitable. Networking would be key in consulting gigs. You'd have to start showing up at conferences, engage with people and just get your name out there.

jibbajabba

Well I am working towards my VCAP-DCA / DCD - I think this is what I would need for myself to feel comfortable to pull the trigger ..

dave330i

jibbajabba wrote: »

Well I am working towards my VCAP-DCA / DCD - I think this is what I would need for myself to feel comfortable to pull the trigger ..

Probably want to add VCP5-DT as well.

blargoe

So, for someone who has been in corporate IT forever with strong, current systems infrastructure skills, but has always dreamed of going independent as a consultant, is the logical "next step" getting on with a service provider as either an employee or contractor? It seems like that would be the hybrid of "perm employee" and "mercenary". Do individuals in the service provider space commonly set up their own "company" for tax purposes and contract with the service provider as that company?

dave330i

blargoe wrote: »

Do individuals in the service provider space commonly set up their own "company" for tax purposes and contract with the service provider as that company?

Some do, many don't. If you have a highly valued skill, its easier to form your own company and sub to a service provider. If you're not a veteran or minority, it'll be better to have your company own by your wife.