IT Contracting - Tips to survive during an economic slowdown

   

IT Contracting has been a good profession to be in for many years now. However, as the possibility of a downturn in the industry seems more likely, what should it contractors do to prepare for more challenging times?

Here are some general tips to help IT Contractors stay on top in the event of a market downturn:

Downturn Survival Tips

• Make sure you put aside money for tax liabilities - VAT, self assessment, PAYE and NI (where applicable).
• Open a high interest-bearing deposit account and make extra cash. Your typical high street savings account is unlikely to offer decent rates, so look around as you should be able to take advantage of 6%+ deposit account rates.
• Save as much money as you can, in case you are "out of contract" for a period of time.
• Cut down on purchases you don't really need for the time being.
• Only leave your current contract role if you have a new secure opportunity to go to.
• When negotiating a contract renewal, don't push for a rate increase unless it is realistic.
• Make extra efforts to impress your client if budgets are squeezed, as contractors are often the first to go when times get tough.
• Keep your IT skills up-to-date as you'll increase your chances of securing future contracts when competition for roles increases.
• If times do get tough and you find yourself out of contract, use the time to learn new skills and be proactive: Keep your CV up-to-date and keep in touch with old colleagues and clients as they'll be the first to know when new contractor requirements come up.

• Comprehensive, expert contractor accountancy service for £95/month with no hidden extras - try Clarity Contracting, Chartered Accountants.

• IT contractor insurance cover from Hiscox
• Fixed Fee Accounting - Contractor Specialists
• Freestyle Accounting - contractor accountants
• Umbrella Solutions - Only £9.95 per week
• Contractor Mortgages
• Contractor Pensions