Thinking of going contracting. Good idea?

Niall F

I have a full-time job in IT. Going contracting is something I want to do. Thought about it a good few years ago but decided against it. Never got it out of my system though.
Now doesn't seem to be a great time to leave a full-time job but yet I can't really find a reason to stay.
What is the IT contract market like today? Are there a good few contracts out there? Is the competition fierce? What are the current rates like?
I have a good few bob saved up. I could afford to go without a job for approx 6 months. Obviously I don't want that, but I'd get by.
Unfortunately with the nature of contract work, they want you available to start quite soon. Currently, I'd have to give 4 weeks notice so it would be a case of resigning and hoping for the best.
I'd appreciate any advice please.

petes

What sort ot IT work are you involved in?

Niall F

Good knowledge across the board really. Probably doesn't answer your question though. Very little I can't tackle. I've an MCSE so my main strengths would be Windows and Exchange.
Networking / Server support / Citrix / VMware / Firewalls / Hardware

Stheno

Niall F wrote: »

Good knowledge across the board really. Probably doesn't answer your question though. Very little I can't tackle. I've an MCSE so my main strengths would be Windows and Exchange.
Networking / Server support / Citrix / VMware / Firewalls / Hardware

There's a fair bit of competition for work in those areas at the minute and rates have dropped.

herya

I'd be afraid to ditch a full time job in favour of contracting right now (unless you have really really good connections in a number of companies, in which case you would ask questions here). The market is just so unstable.

Mrs OBumble

It's such a bad time: have you thought about how many unemployed people there are who you would be competing against for contracts?

Also, do you realise that once you've been self-employed you will not be eligible for most welfare benefits if you can't find a contract? So make sure that your budget includes some kind of income-protection insurance in case you get sick.

Niall F

JustMary wrote: »

It's such a bad time: have you thought about how many unemployed people there are who you would be competing against for contracts?

Also, do you realise that once you've been self-employed you will not be eligible for most welfare benefits if you can't find a contract? So make sure that your budget includes some kind of income-protection insurance in case you get sick.

Yes, I know that and it is quite daunting. I'd survive for about 6 months and then I could be in trouble if I haven't found anything.
I'm working on the assumption that by the nature of contract work, they'd want you to start pretty soon, not 4 weeks later. That's why I'd have to hand in my notice first. Is that the case? Maybe I wouldn't have to hand in my notice. I'd say subsequent contracts are easier to get.

The Hill Billy

You say that you don't have any reason to stay in your current job. I'll give you a good one - a regular income. Why take the risk of going through your savings just to try contracting?

The market is very depressed at the moment & you'd be taking a very big risk on landing a job before your money runs out. I've been contracting for the past 13 years, have a good reputation in my field & have many contacts. But I still couldn't pick up a gig & was out of work for 5 months. If I had stayed in Ireland I'd say that I'd still be out of work.

Have you checked for any suitable roles for you on the jobs sites? Are there many that you'd apply for? What are the rates like? How do they compare to your current wage when tax, personal pension, PRSI, accountant' fees, etc. are deducted?

You mentioned that "Unfortunately with the nature of contract work, they want you available to start quite soon." Don't assume that this is always the case. Clients are often willing to wait until a contract is available if that person is right for the job. If they push it & want you to start sooner - maybe you could factor in any annual leave that you may have due to you.

Best of luck with whatever you decide.

the_syco

As people have said, contracting now is bad for one reason: you're thinking of contracting, to get good money from it, whereas many people have been forced into contracting, as they've lost their job.

And as they need the money, they'll just undercut you.

AARRRGH

I have to agree with the others: now is a terrible time to leave a permanent job just so you can have a contract job.

By all means apply for contract positions, but don't quit your job as there really is a decent chance you will find nothing in the next 6 months.

Niall F

Don't know if I should bring back this up seeing that it was 6 months ago. I thought about it for a while but went for it in the end.
So far, I've been lucky. Handed in my notice in October. Got a contract 3 days before finishing up until Christmas and has been extended now for another 2 months.
So, just want to say thanks for the input provided.

Sleepy

Lots of contracts are currently going for the annual salary for that position divided by four and issued as a 3 month 'contract' rather than the norm of a daily rate.

I'm contracting in the UK at the moment but to be honest, my skillset is rather more specialised (not any harder or better, just rarer) so I can still get daily rate work here. I'd say your best of staying where you are OP. It may not be glamourous (and neither is contracting at the end of the day - Life in a Travelodge is no fun) but it's a guaranteed income.

I don't mean to be demeaning in mentioning it twice but your area of I.T. (sysadmin and networking) is quite a general one. This would make life as a contractor twice as hard for you I think. You're also operating in a market where lots of unemployed people are setting up businesses providing IT network assistance etc. and it would be hard to undercut them enough to still leave you a profit after tax and expenses... and that's assuming the business is legitimate rather than a "nixer" type setup...