How to become an IT Contractor - Becoming an IT Contractor

Parasol PAYE umbrella company
Over 32,000 satisfied contractors.
Get paid quicker. Call 0800 5836000.

Recession could result in boom time for freelancing

Posted Dec 1, 2009

A business expert says that more companies than ever are opting not to employ new staff but instead look to freelancers and consultants in order to fulfil their business needs.

Freelancers keep businesses competitive

Penny Power, founder of UK social business network Ecademy, says that the shift is a positive, but scary one for many. And inevitable to an extent with the effects of the downturn likely to impact businesses well into next year.

"Businesses have hired suppliers as consultants, suppliers and external advisers for a long time, but there is now a distinct shift toward a 'networked model' of resourcing your company rather than an 'institutional' one of having employees that work full time, when perhaps their niche skill is only needed for a smaller amount of the week. In a global market, that competes on costs, sourcing suppliers is the only way to keep your business competitive."

Flexible workforces for the future

Power's views are mirrored in the recent report by the CBI, which revealed that the economic downturn has been a catalyst for a new era of business, which includes more flexible workforces and wider financing options. Power believes that part of this new flexible workforce will be a focus towards outsourcing specific roles to specialist consultants or freelancers and that people should now be looking to promote their core skills rather than trying to sell themselves based on previous job positions.

"A job is something that gives you security and ties you to the company, but only for as long as your are useful. 'Work' on the other hand gives you the freedom to look for the right type of work to suit you and allows you to find many people who may want you to 'work' for them as a supplier. Having six clients that you work for in a freelance or consultant capacity is far more secure than having one employer in the current climate," says Power.

Please scroll down for related articles

Contractor Services


Related Articles

Contractors warned to be vigilant over HMRC tax probes
The PCG has warned contractors to continue being vigilant over IR35 as HMRC appears to be adopting a more devious approach to tax enquiries.

PAYE overhaul on the cards as Coalition launches another consultation
The latest Government consultation could result in a radical overhaul of the PAYE system, in an aim to reduce costs for both HMRC and employers.

PCG announces inaugural freelance lecture
The PCG is to hold its first freelance lecture in London this November, supported by the Telegraph Media Group.

Security cleared roles should be open to all contractors
The Government has released further security clearance guidance which aims to reiterate that contractors should not have to hold existing clearance in order to apply for sensitive roles.

Jobs report shows private sector recovery, but concerns over public sector cuts
The latest REC Report on Jobs shows that both permanent and contract job appointments increased in July, however the rates of growth have slowed a little.

New legislation archive gives access all UK laws since 1267
A new website has been launched which brings together every law created since 1267 - providing access to a staggering 6.5 million documents.

Recruiters support Government plans to review IR35
A leading recruitment body has announced its plans to work with the OTS to develop alternative legislative approaches to IR35.

Job ste reports increased number of contract roles advertised
A recent IT skills reports shows that the sector continues to climb out of recession, with contract roles continuing to increase.

Recruiter outlines Top 10 ITcontract roles of 2010
A recruitment consultancy has outlined the UK's most in-demand IT jobs so far this year - dominated by developer positions.

New body launched to simplify tax system - including IR35
Business groups have responded positively to the launch of the Office of Tax Simplification. One of its tasks will be to review IR35.

Limited company formation numbers on the up
The number of limited company formations has started to rise once again following two years of falls, according to Companies House data.

Government asks us which laws should be scrapped. IR35 anyone?
The coalition has launched a new site to enable people to suggest which laws and regulations should be scrapped. Unsurprisingly, IR35 has already been nominated numerous times.

Union angered as HP keeps contractors on board, but axes employees
Hewlett-Packard is to lay off a further 934 workers, with further cuts possible. The company still retains 2000 contractors, which the Unite union says "adds insult to injury".

IT recruiter warns that migration cap could hurt economy
An IT recruiter has warned that a cap on migration could cost the UK economy dear, as businesses will not be able to source the key workers they require.

Contracting industry encouraged by Budget measures
The contracting industry has broadly welcomed the Emergency Budget, as most contractors have escaped relatively unscathed.

Qdosconsulting

Accountants

Umbrella Companies

Contractor Services

Contractor Financials

CONTRACTOR GUIDES