IT Contracting – Is It Worth Being an IT Contractor?

The IT industry is constantly evolving, and so are the ways in which specialists take on professional challenges. With the growing demand for highly qualified experts, the IT contracting model is becoming an increasingly attractive option, especially for professionals seeking diversity in projects and higher earnings. When should you consider the flexibility and potential benefits offered by IT contracting? In this article, we explore whether this approach can meet the changing needs of the job market and what it could mean for your career.

Definition of IT Contracting

IT contracting is an employment model based on the execution of specific tasks by independent specialists or external companies, which enter into temporary contracts with clients to complete projects. This option is particularly attractive for experienced programmers, system administrators, business analysts, and other IT specialists who prefer project-based work over permanent employment.

Who Can Benefit from IT Contracting?

IT contracting is possible for specialists in various positions.

In Europe and around the world, both startups and large tech corporations are increasingly turning to the contract model as a way to increase the flexibility of their IT teams. This is an opportunity to collaborate not only with freelancers but also with outsourcing companies that offer their services in a B2B model, thus enabling the rapid scaling of project teams in response to changing business needs.

Why Is IT Contracting So Popular?

One of the key factors contributing to the growing popularity of IT contracting is its alignment with the job market’s increasing appreciation for flexibility. Changes in legal regulations in some countries, such as the relaxation of remote and contract work laws, also contribute to the rising popularity of this employment model.

Additionally, the development of remote collaboration tools and freelance platforms facilitates project management and communication among dispersed teams, making IT contracting even more accessible.

IT Salaries in 2024: Employment Contract vs. B2B

In 2024, the IT market continues to offer some of the highest salaries across all sectors. For IT experts providing their services in a B2B model, the largest hourly rate increases in 2024, reaching up to 25%, apply to specialists in the IT security field, including pentesters, SOC analysts, and cybersecurity engineers.

According to research conducted by ITwiz, the IT industry can expect further salary increases in 2024, although they will not be as spectacular as in previous years. This is due to market stabilization and the introduction of new technologies that automate processes and change the demand for certain skills.

Based on the JustGeek.it magazine report, IT specialists working on a B2B basis can earn significantly more than those on traditional employment contracts, especially for experienced and highly specialized experts. In many cases, working as an IT contractor can, therefore, bring tangible economic benefits.

Differences in Salaries Between Employment Contract and B2B in IT

Here’s a comparison of salaries for a Java developer under two employment forms:

	UoP (Employment Contract)	B2B (Contract)
Junior	8,000-10,000 PLN gross	8,000-10,000 PLN net
Mid	13,000-16,000 PLN gross	17,150-20,500 PLN net
Senior	21,000-25,000 PLN gross	26,000-30,000 PLN net

What Other Benefits of Being an IT Contractor Are Worth Knowing?

Working on a contract basis in the IT industry offers numerous advantages that attract both young talents and experienced specialists. Here are the main benefits of this employment model:

1. Time and Geographical Flexibility

One of the key advantages of contract work is flexibility. A study conducted by ITwiz showed that 55% of IT specialists prefer completely remote work. Contractors have the ability to set their own working hours and choose where to perform tasks, which is particularly attractive.

2. Rapid Development

Working on various projects allows IT contractors to quickly acquire new skills and develop existing ones. Findings from a GoodHabitz study indicate that 43% of respondents prioritize training and professional development opportunities in the workplace.

3. Expanding Professional Network

Working for different clients and in various project teams expands professional contacts, which can open new business opportunities and increase the chance of permanent employment.

4. Greater Control Over Project Selection

Contractors can selectively choose projects that best match their interests and skills. Reports from the IT Community Survey conducted by BulldogJob show that 46% of respondents indicate that their work aligns with their passion.

5. Minimizing the Risk of Professional Stagnation

Contract work minimizes the risk of professional stagnation by offering constant challenges and new environments, which helps maintain a high level of motivation and engagement in the tasks performed.

Benefits for Companies from IT Contracting

Using IT contractor services brings many benefits to companies, which are particularly important in the rapidly changing technology industry. Here are the key advantages that the contract model offers to companies:

1. Expanding the Talent Pool

One of the main advantages of utilizing B2B contracts is the ability to tap into a broader pool of professionals. In Poland, such contracts are highly popular among professionals, who make up 30% to 40% of the total talent pool. By adopting this model, companies open their doors to a wider range of specialists, many of whom prefer the B2B structure due to its flexibility and potential financial benefits.

2. Reducing Employment-Related Costs

Hiring contractors allows companies to reduce costs related to recruitment, training, employee benefits, and other full-time obligations. Often, the recruitment process is also quicker.

3. Global Network of Professionals

Today’s world is more connected than ever, and B2B contracts open doors to a global talent pool. Companies are no longer limited to their local surroundings for talent searches.

Instead, they can seek specialists from various parts of the world, bringing diverse perspectives and specialized knowledge to projects. This not only increases talent availability but also introduces valuable cultural diversity into projects, which can be extremely beneficial in the globalized market.

4. Quick Adaptation to Changing Market Conditions

In a dynamic technological environment, companies must quickly adapt to changing technologies and market trends. Contractors, as independent professionals, are often up-to-date with the latest tools and methodologies, enabling companies to implement innovations more efficiently.

Conclusion

IT contracting is an extremely attractive employment model in the technology industry, offering numerous benefits for both IT specialists and companies. Thanks to flexibility, a quick recruitment process, and the ability to scale project teams, IT contracting is becoming increasingly popular among freelancers and IT outsourcing companies. The key factor driving this trend is the adaptation to the needs of the job market, which increasingly values flexibility and specific specializations.