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IT contracting

Discussion in 'Business & Enterprise Computing' started by RaZ, Jul 1, 2015.

  1. freaky_beeky

    freaky_beeky Member

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    It depends on what's going on at the time, but for the sake of simplicity let's just say Senior/System Administrator roles.

    I have in excess of 10 years of experience and as I'm usually applying for a specific project or role, I would have at least one if not, multiple previous successful implementations listed in my CV specifically relating to the project/role at hand.
     
  2. IACSecurity

    IACSecurity Member

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    You forgot about paying 10% GST (most likely) out of that hourly rate as well.
    PII etc is only a few thousand per year.
    Workcover possibly as well another few %.

    So you end up at about $2.2K in hand a week.

    Contracting and Consulting have very different hourly rates.

    I am on a long term contract but only earn $1400 a day, where as if I was consulting, it would be far higher than that (most like $2000 a day).

    Longer term Contracts = less paperwork, less gaps, less fuck around, more flexibility.

    Should not be comparing the rates of them both.

    FWIW - I am very specialized in a very high demand segment, and I am very skilled, with extensive experience. I am running low rates because I want to be able to pick the work I enjoy.
    Life and Shit is more important than money.
     
  3. gdjacobs

    gdjacobs Member

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    Sounds sketchy, but if Apple can do it...

    It would get pretty complicated. You'd definitely have to tax any renumeration your company pays to you in AUS, I think. Worth double checking with a lawyer.
     
  4. OP
    OP
    RaZ

    RaZ Member

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    Yeah - Sydney is the place for IT now. I haven't seen rates at 750 a day for years in Melbourne. Got that here in Sydney first go!

    (Yes well over 10 - more like nearly 20 years experience now)

    In Melbourne I was just getting screwed over and messed around. The recruiters down there... People Bank, Interpro, Finite, Hudson, Talent & clicks recruitment have all been trouble.

    Things like... setting you up with a job that doesn't match your skill set - if you get said job and it doesn't work out - they WILL mark your name and not accept nor pass your resume on for any work (Active prevention of people geting work)

    All of these pricks try to sell 1 hour to 1 day notice periods as well.
     
  5. IACSecurity

    IACSecurity Member

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    Thats because of the double Irish dutch sandwich, not just because of the caymans. Its not practical to do this as a standard company in australia without a bunch of international subsiduaries, royalties and all sorts of other BS.
     
    Last edited: Dec 21, 2015
  6. itsmydamnation

    itsmydamnation Member

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    Some of these rates make me a sad panda.... 1400 a day... I guess that's still quite a bit less then my client get charged for me......

    :upset::upset::upset:
     
  7. IACSecurity

    IACSecurity Member

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    Risk reward, quit your full time employment, setup a company and find your own work. You get rewarded for the risk, or you don't then you have to hunt for any old job to pay for the house... or go unemployed for a while.
     
  8. itsmydamnation

    itsmydamnation Member

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    Im well aware of the trade off's, Canberra market it is also hard to get really high paying gigs because of the whole panel arrangement. Also the whole we have a range of candidates and hourly rates, lets pick the cheapest because that will be mega awesome derp derp........

    still its a very big difference....
     
  9. Iceman

    Iceman Member

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    Simplified example, mentally I split the business down the middle, the side I'm dealing with is the money you actually have per hour for "use" - eg in my head the other half of the mental business picture deals with gst, bonuses, fanciful "non billable hours" you include to show how much "extra work" you're giving them. Also, non-legal/best practice/whatever in IT in australia dealing with supply of goods or labour - I find it very common to be fed "gst free" prices until I get a formal quote or invoice - at which time it appears.

    They are doing it, for the moment. Think for a moment about the risk vs reward when it comes to fighting a company with (literally) more cash on hand than Indonesia or Malaysia - certainly more than Australia. Do you have that many resources to throw against the ATO? Then you probably can't do what they do. Just saying..
     
  10. koopz

    koopz Member

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    I think that's why we see so many IT guys ( and girls now ) come on as contractors...


    they've peaked their worth at their old job after 5-15yrs - and can't compete with established companies if they were to start up their own enterprise... yet they love technology and want to still play in IT/Comms


    they trap themselves fiscally into contracting as they're desperate to maintain their self esteem and self worth instead of looking for something new entirely. They do little to no research before committing to risky contracts. Oddly - Whirlpool has a forum or 2 that discusses this


    There is no shortage of these people.


    There's always going to be someone who'll do it cheaper... you'll know them when you meet them as they sound like they are running away from something if you put them under pressure.


    such is outsourcing
     
    Last edited: Jan 1, 2016
  11. JumpingJack

    JumpingJack Member

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  12. millsy

    millsy Member

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    I think it's easy to also fall into the pithole where you try and set a rate which you would pay, forgetting it's not going to pay the bills :)

    I remember when I was 18, I was contracting out to a big company @1400/week, which for 18yo chris was heaps, especially as I barely hit the taxable threshold as it was during uni holidays.

    No way would I set it so low now, taking into account tax and other overheads... Yeah nah
     
  13. IACSecurity

    IACSecurity Member

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    Interesting perspective on things. Can't say it is entirely accurate.
     
  14. lavi

    lavi Member

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    So let me get this straight and shine some light on this for other people

    If you can work as a contractor for year long stints at $100/hour (minimum which is be bare minimum entry level) vs $45/hour full time what would you do?

    imho contracting gives you a hell of a lot more flexibility as you basically have an extra $50/hour disposable income, if you actually invest that properly it will give you a better return than Super, $50/hour X 37 hours makes super look like a Somalian kid looking at chocolate .....

    now you still left with $50/hour and you have to pay tax just like your $45/hour job but being a contractor you get a lot of benefits, I'm not going to give you financial advice as you'll have to go pay your tuition fee but hell man, the flexibility with tax is insane, for starters you will drive a better car, have almost free medical insurance and keep more in your pocket than full time employment.

    The risk? yeah you can loose a contract but within 1 month you're onto another one if you're good. Or you can get a full time job if you feel the need for the thing some people call job security.

    Yes contracting can be a bit more stressful, a bit more is demanded of you and you have no excuses like "i wasn't trained to do that", "it's not my responsibility" etc. as a contractor you can look at ways to extend your contract by taking extra responsibility etc. there are always ways to better yourself

    In the end it's two kind of people, ones who take risks and get somewhere and ones who who don't and sulk at people who take risks.
     
  15. hosh0

    hosh0 Member

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    What did I just read? Contracting definitely has it's place and is a great option for everyone at different points in their career but that last line is total horse shit.

    It depends totally on your field, expertise and what you want? If you want to join a small or medium sized org and help it grow whilst having a stake in the business etc you can't really do that as a contractor. Same thing if you want to work your way to CEO, at some point you're going to have to stop contracting to make that leap.

    Horses for courses and there is no one size fits all.
     
  16. lavi

    lavi Member

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    if you believe you can't jump from contracting to management you're wrong most people do it, normally around me I see people moving from contacting to PM'ing then Business Manager then whatever you care

    in IT today you don't need to start from the bottom, people acknowledge results, today's world is results driven, loyalty and all the other crap comes later, stakeholders want someone who can bring results, by contracting on multiple projects they can see results they can see you've taken on project and have completed the project then moved on, that is exactly what they want to see, someone that is capable of doing just that, well in my case and everyone around me

    We have a few people at work that I have been told they have not progressed in their career for over 10 years, they will come to a rude awakening when they become the spare wheel

    Each to their own. And this is the IT thread and and you're wrong when you say not one size fits all, especially in management where one size has to fit all and if it doesn't fit you tell them how nice they look in that size and they go home happy
     
  17. hosh0

    hosh0 Member

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    Lol my point is in management you're a fte and not a contractor. And if you're in a role or company where one size fits all, chances are your jobs batshit boring and mundane.
     
  18. lavi

    lavi Member

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    it is so batshit boring and mundane that as an IT company we brew our own beer, have a pool table (which actually gets used every day) and bbq on the balcony, playstation with wheel and pedals for when we're bored and hardly work more than 6 hours a day, we never pay for breakfast and lunch as it is provided and even thou we brew our own beer we still go for beers every friday arvo with about 90% of the team (the rest are gingers who still think coke and pepsi is the bomb) oh yeah we also have a mixing desk and few people who can really spin some tunes from time to time
     
  19. hosh0

    hosh0 Member

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    And everyone there is a generic IT worker and there are no differences in role?
     
  20. lavi

    lavi Member

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    very very few chiefs many indians
     

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