What is Contracting?

Contracting has been a well established feature of the computer industry for more than 30 years, long before buzzwords like 'outsourcing' and 'downsizing' entered the corporate vocabulary.

In simple terms, contracting means that instead of having a position in an organisation, the contractor is engaged to work on a certain project, usually for a specified period. When the project is completed, the contract lapses or is renegotiated.

For most contracting positions, an agency acts as intermediary between the contractor and the client organisation, to match the contractor to the job and to simplify administration.

Of course, there is an increasing trend at all levels and in all walks of business to use contracts. This means that contracting is now an accepted way for organisations and individuals to balance their needs and commitments to each other.

Why Are Contractors Engaged?

There is a growing trend for organisations to focus on their 'core competencies' - that is, to concentrate their efforts on the things that create value for their customers. On the other hand, organisations are backing away from direct investment in 'enabling' processes such as transportation, maintenance - and Information Technology. It makes more sense for organisations to engage a third party to provide these services.

Organisations recognise that their needs for IT development and operations skills change rapidly. For all but the largest organisations it is impractical to keep all the skills they need on the payroll permanently.

To provide the skills they need, organisations hire contractors for the duration of a specific project. The contractor will usually have a well defined job description tied to a particular deliverable, which can be anything from a specific program module to an entire project, or the operation of an IT facility for a period of time.

Organisations are prepared to pay extra money to have the flexibility of only paying for the skills they need to meet their present challenges.

Who Goes Contracting?

Almost anyone with good IT skills can go contracting. However, you do need a level head, and you must take responsibility for your own career and lifestyle.

Contractors range from computer operators and tape librarians through to senior project managers.

If you are considering moving to a contracting career, read this handbook to learn more about the opportunities and responsibilities of contracting, and see for yourself if you are the type of person who could make a successful and rewarding career in contracting.

If you have any questions, call one of our account managers who will be pleased to discuss your interests and concerns.

Who Engages Contractors?

Almost all organisations engage contractors from time to time.

Large organisations may have hundreds of contractors working for them at any point in time. Organisations in all industries, as well as software houses and service providers, hire contractors for specific projects.