IT Contractors were hit by this downturn but not as savagely as they were in previous downturns.
The hit some contractors took was in the pocket as client companies endeavoured to save as many of their IT Contractors as possible but at a lesser cost.
Some companies made contractors take a 10% cut across the board.
Even here, though, they weren‘t hit as badly as last time when more companies did this and some came back for a second 10% bite of the cherry.
Previous donwturns were far more savage for IT contractors.
Escaped Downturn – Rates Down
Yes, of course rates have gone down, as you would expect in a downturn, but not nearly as badly as might have been expected.
There were some ridiculous rates offered in the last downturn.
Indeed, some agencies were bidding contractors down last time round in a Dutch auction asking them how little they would take intimating that the contract would go to the lowest bidder.
This time around the worst is almost over – yet the hit has not been as bad.
Escaped Downturn – Better Times
Contractors can now look forward to better times with a new downturn probably years away.
Of course, as we‘ve said before, if you are out of work the downturn is very bad.
If you worked all the way through the downturn at a good rate then you‘re asking ‘What was the problem?’ An escaped downturn leaves you sitting pretty.
However, overall we haven‘t been hit too badly and the signs are that there is an uptick coming.
The early stages of an upturn are good for IT Contractors as companies prefer taking them on instead of permies till the market gets better and the recover more sure.
Then, when they feel more certain of the recovery, companies take on permanent workers again.
Then, when they run out of those, it’s boom time for contractors again.