IT Contractors Future
Here are ten reasons for us to be more cheerful about IT Contractors Future:-
1. Contractor Downturn Over
The worst downturn in our history is now well over at long last. Contractors can look forward to several years of much better opportunities.
2. Contract Vacancies Up
The number of Contract Job Vacancies has gone up appreciably in the past year according to job sites. After a slight blip, the market has started rising again.
3. Contractors Getting More Phone Calls
Even those who are not back to work yet are telling us that they are getting more phone calls than before, giving them more hope for the future. IT Contractors future looks much better.
4. Contract Rates to Rise
It always takes a while for rates to rise after a downturn as there are still more contractors available than there are vacancies, but with each person who gets back off the bench there is an extra squeeze on rates.
According to one agency, rates and salaries can be expected to rise by 10% to 15% over the next few years. That‘s much better than the average for other professions.
Roll it on!
5. Eastern Europeans Not Coming
With Brexit there will be no cheap competition from Eastern European freelancers.
That’s better for IT Contractors future.
Of course, it will mean that UK contractors will find it harder to work in Germany, Holland, France etc.
6. Skills Shortage List
All IT Skills are still off the Skills Shortage List. If there is a skill on that list then employers can look outside the EU for employees without even advertising in the UK.
I‘m sure that there will be pressure soon to get some of the skills back on, but IPSE have a seat on the Skills Panel and they will fight tooth and nail to stop it.
7. IT Skills Shortage
There is talk again of a looming IT skills shortage. One must be careful here because many of those talking about it have their own agendas, i.e. they want cheap IT labour from outside the UK.
However, there are quite a few people talking about it. If there is going to be an IT skills shortage than that will really boost the employment prospects for those who work in the industry.
It will also push salaries and rates higher in the years to come.
8. Fewer IT Graduates Getting Into Contracting
Very few of the IT graduates over the past few years were able to get into IT and so have had to take opportunities elsewhere.
Having seen their predicament, other school leavers who would have taken IT related degrees are studying some other subject now. As a result there will be many fewer IT graduates coming onto the market over the next few years, putting a further squeeze on rates.
By the time they cotton on again and spend 3 or 4 years getting a degree the next downturn will be upon us.
9. Bad News About Outsourcing
It‘s not one way traffic as far as offshore outsourcing is concerned any more. Nearly a half of companies who have outsourced say that they are unhappy with the results with many of them taking decisions not to outsource again.
Also, in the past year, big companies like RBS have come out and said that they are not going to outsource because ‘it adversely affects customer satisfaction‘.
10. Business Booming for Companies That Sell to Contractors
Our advertisers and sponsors, accountancy companies, umbrella companies and job boards tell us that business is booming with some of them more than doubling their business in the past year – and all of them increasing market share.
There‘s definitely more than a whiff of the good times coming back again.
Champagne corks are not popping yet. It‘s more a case of sparkling wine, but another year of improving conditions and contractors really will start to believe that the good times are rolling again!
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