The major problems IT Contractor have when branching out

Branching Out
Branching Out as an IT Contractor

Branching Out

This article, about contractors branching out, was posted by reader Darren in response to one of our articles about how IT Contractors can make much more money.

The Problem for IT Contractors

It’s all very well publishing articles about how IT Contractors can branch out and win more business from their clients.

If you could pull this off, it would be a great position to be in. It would be a real opportunity to move away from contracting and develop a real business.

IT Contractors branching out
IT Contractors branching out

The problem is, that whether you were working with teams of cheap developers or doing the work yourself, you still have the same old problem with marketing.

Selling Your Services

Selling your services directly to clients and presenting yourself as a credible company is still going to be the difficult bit.

Sure you can hire sales and marketing people and start tendering for projects. However, it takes more than that to get on an approved supplier list.

Current Client

With my current client, the first step in being approved for this list involves them looking at the companies’ financials.

This would be the show stopper for most of us. They wouldn’t touch the average contractor company because the turnover is too low.

There’s also the problem that the suppliers list is full of friends of the senior managers. There’s not much you can do about that one.

IT Contractors - how to get rich
IT Contractors – how to get rich from IT Contracting

Tender for Project

Recently a group of contractors tried to tender for a project, they were prepared to undercut the competition on a development project by about 50% (and still make a very nice profit).

The project managers were happy with this, as they knew the contractors were the best people for the job, they’d been working with the business for over 2 years.

The software development outfits they work with are always delivering poorly documented buggy applications and the contractors usually end up sorting these out.

The Client would have made a huge cost saving and ended up with a better quality system which was delivered on time.

The problem was they couldn’t get on the approved supplier list!

That’s the problems contractors get when branching out to make more money as an IT Contractor.

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