IT Contractor Jobs - Finding IT Contract Work

If you are about to start a new contract, or if you're coming up for renewal, these tips may come in handy to help you maximise your earning potential, while keeping on the right side of your agent and end-client.

1. Contract rates are subject to supply and demand movements, influenced by a number of factors, including the state of the economy as a whole, and the relative scarcity of any given IT skill.

2. Personal factors will affect the rate you can command, including your own skill set, the depth of your IT knowledge, and how much industry experience you have had.

3. Rates vary by region, with the highest rates in Greater London (including the City), the South East and South West. Around 80% of all contract vacancies are in the South of the country.

4. Rates vary within industry sectors, with some of the highest rates of pay in the oil and financial services industries.

5. If the economy is looking rosy, and you have a number of contract offers available to you, your bargaining power is stronger. You can afford to say 'no' to less than optimum roles, or push for a higher rate.

6. Strong negotiation skills are not natural to many of us. It can seem a little unnatural when you first start contracting to fight your corner, however rate negotiation is a business activity and not a personal one.

7. Opportunity cost - during your career as a contractor, you may be faced with the prospect of taking a low paying contract right away, or holding out for a better prospect (which may or not materialise).

8. Don't be afraid of asking your recruitment agent how much commission they are expecting to make on your contract. There may be room for movement, in your favour, if you negotiate strongly, and if the agent's commission is a little on the generous side.

9. When applying for a contract role, avoid mentioning your current rate as this may limit your negotiation options later on.

10. One of the golden rules of negotiation is to aim high and expect to compromise to achieve the rate you really want.

11. If you are negotiating a rate extension, the rules are different, as you will already have a relationship with the client, and presuming they are happy with your work, they will be keen to keep you on board rather than starting again with a new face.

12. Recruitment agents are professional negotiators. Although you may form good relationships with agents along the way, their two main aims are to maximise their commissions, and keep the client happy.

13. Don't be afraid to discuss your renewal options with the person on the client site who pulls the strings, as well as your agent (if you are using one).

14. Don't threaten to walk away unless you are in a strong position, as the agent/client might just call your bluff. It is a delicate balancing act.

15. Try to act cool when negotiating, even if you are new to contracting. If you appear to lack conviction in your own worth or confidence in your rate demands, the agent may see through this.

16. Don't let things get personal. You are running your own business, and your aim is to maximise the returns you can achieve in return for providing skills to the end client.

17. You must be prepared to compromise and show that you are flexible; even more so when competition for contracts is fierce.

18. There are times when it is simply not in your best interests to push for a rate increase at all, for example when the economy is weak.

19. Ultimately, the whole negotiation process is a type of game. You want to maximise your rate, the agency wants to minimise your rate and maximise its commission (and keep the client happy), the client wants to minimise its outlay whilst getting the best contractor available to them at the current rate.

20. To get a general guide to current IT contract rates, try our Contract Rate Checker as a starting point.