CONTRACTING: THE PROS AND CONS

Last month I was humbled to be asked by the IIBA to co-present a webinar on the topic of IT Contracting and its pros and cons. I’ve thoroughly enjoyed being a contractor and have experienced both the benefits and the pitfalls. Following on from the webinar, I thought it would be useful to share my thoughts here. 

Please add your own thoughts in the comments; it would be great to hear from you.

Pros of IT contracting

Financial

One of the top advantages of being a contractor is the earning potential. Contractor rates are typically more than equivalent salaries for a permanent colleague. While this is great from an income perspective, contractors must be fully aware of the benefits (such as holidays and insurance) that we do not qualify for. As with any business, good financial planning is essential in ensuring sustainable success.

Freedom

I’ve always enjoyed having the freedom to control the work I do and who I work for. I’ve also benefited from choosing location, including a 6-month contract in Saudi Arabia. Additionally, I’ve been able to take time off between contracts, and often had Christmases off due to businesses implementing furlough.

Variety

Working on a wide variety of projects, in different industries and even different countries, means you’re never likely to have a dull day, become bored, feel your career has gone stale, or slip into the comfort zone often associated with working for one company. If you enjoy variety and love a challenge, take the plunge!

Politics

One of the advantages of being a contractor is that we tend to avoid – or at the very least are less likely to get involved in – office politics. We can focus on delivering the goods and services as promised, and not have to worry about line management or career progression. 

Networking

Through the variety of projects that you get to work on, you can build a large, trusted professional network, which can support new opportunities and business growth over time. 

Holidays

Another advantage I’ve enjoyed over the years has been taking time out to spend time with my family - whether that’s between contracts, at Christmas and Easter breaks, or at half terms. I’ve also used that time to focus on other personal passions that busy family life and a full-time job might not normally leave time for, like hiking and wild camping. 

Accountability and responsibility

As a contractor, you have an obligation to your clients: to deliver the goods and services; to make sure you always conduct yourself professionally; and to run your limited company as professionally as possible.  

Training

One of the big advantages of contracting is we get to decide how and when to improve our skills set. Training is an essential part of contract life and this year I have completed my International Diploma in Business Analysis and am currently studying for my Agile Analysis exam with the IIBA.

Cons of IT contracting

Lack of security

With short term contracts comes a degree of insecurity, which can be a drain on time, resources, and even confidence and mental health. Having gaps between contracts or long periods of time without a client can be stressful and can impact on finances. Contractors need to be aware of these key downsides and absolutely must be prepared for these ‘feast or famine’ situations. 

Administration

In today’s digital age, some of these tasks have been automated, but be prepared to do some boring and mundane tasks – or at the very least, employ someone to do these for you.

Lack of training

Many contractors do say the lack of time to train and develop their skills is one of the downsides to contracting. It will always be a balancing act, juggling clients, business development, training, accounts and all the tasks associated with running your own business. Contractors need to ensure they find the right balance to achieve sustainable success. 

Difficulty returning to permanent work

Personal situations change, and many contractors over time decide to head back into permanent employment. When making the change, convincing employers that you want to remain a permanent employee, have a career path, and enjoy the benefits of being a permanent member of staff, can be challenging.

Conflict management

There are many reasons that businesses decide to hire contract staff, and sometimes this can cause conflict with permanent colleagues. Managing this, and working hard to resolve it, is essential in these situations. 

Time and energy

Put simply, running your own business is time consuming. There’s always something to do, whether it’s delivering for your client, accounts, networking, LinkedIn, business development, and so on. It does take time and effort, so be prepared for it!  You need to not only make time for these activities, but also for a healthy work-life balance which will give you the energy that makes your lifestyle sustainable.

IR35

Having said all the above, if you are currently a contractor or thinking about entering the market, please make sure you fully understand all the changes coming in, that you understand the risks, and where possible speak to experienced professionals. This will help you make the best possible decision for your circumstances.

Is contracting right for you?

The contractor lifestyle can be very rewarding from a professional and personal perspective. Ultimately the decision to contract is a deeply personal one, so I hope this article helps you to understand the pros and cons of contract life.

Whether you’re contemplating the contractor lifestyle yourself or are an experienced contractor with reflections of your own, I’d love to hear from you. Please comment below to continue the conversation.

Special thanks to Mark Scott, content maestro for fine tuning my words