Benefits to a Contractor Relationship
To take advantage of such excellent employment opportunities, many IT professionals are turning to IT contract agencies. There are many benefits to doing so, including but not limited to handing over contract negotiations with the clients to the agency, tapping into the existing client network of the agency and letting the IT agency market your curriculum vitae.
As an IT professional, you can also choose to maintain a relationship with IT agencies on many grounds. For one thing, it is possible to take on a wide variety of new and challenging jobs instead of being stuck in a routine. For another thing, it is a way to earn extra money on the side without too much pressure on your time.
For many IT professionals, maintaining good working relationships with contract agencies involved in the IT industry are rewarding, fulfilling and challenging in more ways than one. Still, issues abound especially for newbie IT professionals, which this article will try to answer as many as possible.
Contract or Consult
There is a major difference between being a contractual employee of an IT agency and being an independent consultant. On one hand, contractual employees are hired by the staffing agency and then assigned to organizations requiring expert assistance on a wide range of IT projects. Tax forms known as W-2 will be provided at the end of the year. On the other hand, independent consultants must market their own services, directly contact the clients and perform all other business-related activities. In fact, it is necessary to pay the taxes and fees on your business.
Although both terms are interchangeable for many industry professionals, it is important to distinguish between the two arrangements. This is especially true when considering the merits and demerits of working through IT contract agencies.
Pay and Benefits
For most IT professionals, being connected to IT agencies as a contractual employee has its financial perks. Excluding the benefits of permanent employment like health insurance, bonuses and allowances, majority of contractual It professionals will earn more than 30 percent of the basic salary of the permanent employees. This is often attributed to the fact that contractual IT professionals often have a wider and deeper experience in many fields, often overlapping into other diverse areas like psychology and business. Thus, these professionals can command higher rates for their services.
However, it is still highly possible to receive fringe benefits although the quality and quantity will vary greatly from one IT contract agency to the next. IT professionals may negotiate or be offered group health insurance and retirement plans but take note that vacation and sick leaves are not included in the package. Keep in mind that you are working on a per-contract basis, which can stretch from 6 months to a year depending on the complexity of the project.
Terms and Provisions
Just like any contractual jobs, it is important to look at the terms and provisions down to the last print of the contract being offered by the IT contract agency. Said contract should spell out standard provisions like type of assignment, place of work, expected output, contract duration, and number of working hours as well as pay rate and other allowances, if any.
Most IT contract agencies will offer two options - contract-to-hire and on-the-bench contracts. Contract-to-hire means that the client will have the option of offering permanent employment to the IT professional although it must be emphasized that the former has no obligation to offer and the latter has no obligation to accept.
On-the-bench means that the IT agency can retain the IT professional's services even when there is no work in the pipeline. You will, however, still be paid for your services although it can be at a reduced rate depending on the terms of the contract with the IT agencies.
In conclusion, working as a contractual IT professional has its share of rewards and challenges. Just make sure that you have the capacity to take them.
