Pros & Cons of IT Contract Jobs

November 6, 2020
Pros & Cons of IT Contract Jobs

As technology continues to advance, we have seen a demand for IT contract jobs in the world of business. Companies who are implementing new technologies and strategies to grow their businesses, such as Business Intelligence and Analytics, Artificial Intelligence, and Adobe Experience Manager are bringing on contractors to work on both short term and long term projects. Most companies are tapping into the benefits of utilizing full-time talent without taking on the liabilities or responsibilities of having someone on their W-2.

According to an article published by NPR, “A new NPR/Marist poll finds that 1 in 5 jobs in America is held by a worker under contract. Within a decade, contractors and freelancers could make up half of the American workforce.”

The way we work is changing, and it’s touching all industries, and the tech scene is no different. Previously, people would stay at a company for ten plus years, cash in on all company benefits, and plan for retirement. Now that is becoming obsolete as the younger generations are entering the workforce. They are more open to IT contract jobs because they change opportunities so often.

How Do IT Contracts Work?

In today’s workforce, you have many options, and two of them are working as a permanent employee or working as an independent contractor. For many, IT contract jobs have never been a consideration, or they didn’t even know it was an option. In today’s blog, we are shedding light on how contracts work, and the pros and cons of choosing it as a career option.

What Options Do Contractors Have?

There are a few different ways an individual can work on an IT contract job for an organization.

(W-2) These can be IT contract jobs that work on the W-2 under a staffing agency/recruitment company that would be paying by the hour.

(Corp-to-Corp) IT contract jobs where you could be working for your LLC on a contract for another organization. In this case, the individual would be an independent business owner providing a service for another company.

(1099) The candidate would be an independent contractor working for another company. (very similar to corp-to-corp, but the individual is working as an individual, not an entity)

Mixed Feelings

When it comes to working IT contractor jobs, especially if you have no prior experience with it, you may feel a whirlwind of emotions. One of the most common feelings associated is fear. Fear of no guarantees of a job/project, work not being steady, or the fear of not having company benefits. These are just a few reasons why people dismiss considering a contract position. However, don’t let those fears stop you if you’re interested in switching to IT contract jobs; there are many benefits and reasons why you should consider IT contract opportunities.

Pros & Cons of IT Contract Jobs

The Pros:

1. Compensation

Contractors tend to get paid at a much higher rate than someone who is working full-time. This increase in compensation makes up for the lack of benefits and the notion of instability. If you are making 130k a year, the typical rate for a contract would be closer to $85 hourly. This increase helps to cover the benefits that you would now have to pay for yourself and for the potential of going for a short period without work.

2. Flexibility with IT contract jobs

As a contractor, the choice is yours. You get to pick and choose the contract terms and company you want to work at. Whether you have a family or enjoy traveling, you can select what is best for you and plan your commitments around each contract you take on. IT contract jobs vary as far as length, so you can choose to take on a 6-month project or a year-long project. Often an initial contract will extend if the scope of work continues. You can also take off in between contracts to travel, spend time with family, or expand your skill sets, and take a certification. There is even the opportunity to take on multiple projects if the hours allow it.

When you work on a contract basis, you gain exposure to various tools, teams/companies, and projects. This gives you a well diverse resume that you wouldn’t get with a permanent position. By taking on jobs that best fit your goals, you have the opportunity to control your career. If you want a challenge, you can find a contract that will expand your skillset. If you enjoy building from the ground up, you can find a startup to work for. Contract work is an excellent opportunity to become a well-rounded candidate that companies are continually looking to hire.

The Cons:

1. Travel time or Relocation

Contract work can fall into three categories working onsite at the companies location, remote work, or travel. The travel can vary depending on what the companies requirements are. Often onsite is needed during the ramp-up period and can last 4-6 weeks. Other times the company will require you onsite during the length of your contract due to the nature of the work or even data/policies. Lastly, you can be fully remote.

2. More Responsibility

When doing IT contract jobs, you are responsible for fending for yourself in terms of benefits and government contributions. There are many resources online that can guide you through this process.

3. Risks

There is always a risk when it comes to IT contract jobs. As mentioned before, you are in control of your schedule and the amount of work you do. If an agreement is coming to an end and you want to keep working, it’s up to you to secure your next deal. If you market your work, skills, and build a network, then work can come to you as you make your reputation.

At the end of the day, when deciding if IT contract jobs would be the right fit for you, you need to ask yourself what is important to you? What are your goals and career aspirations? There is always a risk even with full-time employment you have to decide what your risk appetite is!

If you happen to be looking for IT contract jobs, check our jobs page!

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