The 'giant' feelgood factor for freelancers

Contractors are optimistic about future growth in the IT software and services market according to contractor specialist 'giant'.

According to giant's research into contractor confidence, 45 per cent of contractors thought their earnings would increase this year, while only 28 per cent thought they would decrease.

Giant's Contractor Confidence Index (CCI), based on figures for the first half of 2003, polled contractors on a range of issues concerning their current and future status including contract length, earnings growth and the sectors in which they expected to see greater contract prospects.

Contractors were asked where they expected more job opportunities to be in the next 12 months. Financial services came out on top at 24 per cent, telecoms polled 19 per cent, support services 14 per cent and the public sector 13 per cent.

Matthew Brown, managing director of giant group plc said: "With the stockmarket showing a positive trend this year and M&A activity in the City improving contractors feel buoyant about financial services jobs. City institutions cut IT departments to the bone in the last downturn so any upturn is going to feed through to job creation fairly quickly.

"Many commentators are forecasting that as the economy rebounds companies will utilise a higher proportion of contractors rather than committing to permanent employees in order to provide workforce flexibility."

Outsourcing

According to giant, with 20 per cent of contractors working in support services the low level of confidence in that sector was significant.

Matthew Brown said: "Offshore outsourcing is seen as representing a threat to future job creation in the IT support services sector, perhaps accounting for the relatively pessimistic outlook contractors have for growth in that area.

"Similarly the low level of expected opportunity in the public sector is surprising given that most commentators forecast significant growth in public sector contracts. Perhaps this reinforces the contractor's focus on income as the key driver in contract selection, reflecting the perceived lower contract rates in this sector."

Between contracts

Contractors were asked about the average length in days between contracts in 2002. The majority, 73 per cent, experienced gaps of 31 days or less, while 15 per cent spent 90 days or more without work between contracts.

For 2003, 28 per cent of contractors thought gaps between contracts would decrease, while 24 per cent felt they would increase.

Matthew Brown said: "The consensus among contractors seems to be that 2002/03 was the bottom of the economic cycle. Although confidence is still a little shaky contractors are beginning to see that there are more projects out there."

What attracts you most to a contract?

The final question asked contractors to rank in order of preference what attracted them most to a contract - income, job security, work-life balance, skills development, job responsibility or employer/brand status.

Results

Contract criteria (Score)

• Income (476)
  
• Work-life balance (402)
  
• Skills development (400)
  
• Job security (374)
  
• Responsibility (343)
  
• Employer/Brand (295)

Matthew Brown said: "For contractors to rate job security fourth out of six contract criteria is interesting in what is considered a tough candidate market. Job security would have been far higher on contractors' wish list a year ago when rates were falling and terminations rising. With income emerging as a clear favourite contractors may feel that the money is there again because of a perceived pick up in the market."

The sample size in the giant survey was 267 and the survey was conducted online through the giant website.