Going From Full-Time to Freelance

IT pros are leaving the corporate world like traders at the closing bell on Wall Street: fast and en masse. That's the inside scoop from an IT executive at a Fortune 500 bank. According to my source, 70 percent of the bank's IT employees quit their day jobs in the last two months to become consultant. The reasons are typical. Consulting simply offers techies more money and personal flexibility than the corporate grind. While the gleam of freedom and riches is still bright in the eyes of newly minted contractors, I decided to ask a simple question: In the long run, will these contractors succeed? Five Best Practices I've written in the past about the success factors of contractors, including planning for downtime, a rainy day fund, insurance, retirement, and networking. But this recent revelation prompted me to look more deeply into the things HotGigs has learned about the contractor marketplace. We've learned that successful consultants follow a core set of best practices, including the following five behaviors:

1. They stay current on technology.
2. They invest in themselves with training and new skills acquisition.
3. They know how to run the "business side" of being a consultant.
4. They think more about long-range career opportunities, not just money, when considering a new gig.
5. They know how to market themselves and they do so frequently and consistently.

		For more expert career advice and articles on career issues and topics, visit TechCareers.

While these five strategies keep a contractor vital, busy, and at the head of the profession, the reality is most contractors need to modify their behavior to live up to these high standards. Most Not Following Best Practices HotGigs' study of the state of the IT marketplace shows stark gaps between what contractors say they do and what they should be doing. For instance, being schooled in the latest technology is essential for a techie. But a whopping 49 percent of contractors surveyed only invest $1,000 a year--or less--in training and skills acquisition. This meager investment is hardly enough to bone up on a new programming language or qualify to sit for a certification exam. Business acumen is woefully inadequate, too. The majority of contractors ranked business skills first and second in importance out of a list of seven skill types they want to acquire. They said they want to learn more bookkeeping, time management, and negotiating skills--a good step in the right direction to help consultant manage their business. When asked about their least favorite aspect of consulting, the majority of contractors said they "didn't really like at all" locating new leads. Negotiating rates, invoicing and accounting issues ranked second among the least popular activities. Money Holds Allure Money drives most consultants too much. As my executive friend at the Fortune 500 bank pointed out, contractors are seduced away from their day job by the whisper of higher earnings as consultants. HotGigs' survey showed that money was the number one deciding factor for consultants selecting new projects. But money isn't always the best consideration when examining a contract. Things like the prestige of the project or the company and the ability to network your way into more contracts may be a better consideration when thinking about a long-term career. Marketing Skills Weak The majority of tech contractors surveyed said marketing continues to be a weak spot. Contractors rely heavily on referrals to land new opportunities. While important, word of mouth is a passive way of marketing that may keep you hovering in the safe zone--in the same pay scale and type of project, further limiting your ability to learn new programming chops. Only 32 percent of respondents are contractors who I'd describe as "active" in terms of marketing themselves. Active means seeking out new contract opportunities at least six to 12 times a year. With so many projects only lasting three to six months at a time, the importance of continually getting your name in front of prospects cannot be overemphasized. When you enter the market as a consultant, you face the consequence of becoming unemployed if you fail to rigorously market yourself. Additionally, you're at a disadvantage when negotiating contracts and rates if you're desperate for work. You'll compromise your pay, accept work that may not interest you, and ultimately shorten your long-term prognosis as a contractor. Gaining Better Skills Of course, all of these counterproductive behaviors are reversible. Sites like HotGigs, that offer techies a suite of products, contractor management, and networking tools, make it easier to break out of self-limiting behaviors as a contractor. For instance, online training is a click away, available on a variety of sites, including HotGigs E-Learning. The site includes technical development courses and certification preparation, as well as courses on business skills. Our Consultant Desktop resides just beyond your HotGigs login screen, with a variety of new tools to help you market yourself. On the Consultant Desktop you'll find the expected Profile Management and Search Agent settings that are standard on most job sites these days. But HotGigs also offers features that help you research rates and monitor who is checking you out. This makes it easy to follow up independently with a phone call or email to the hiring manager. You can also import a list of contacts, invite them into the HotGigs network, and promote your availability to them with a simple click. Got a question for Doug about moving into the contracting sector? Send it in and he'll respond at Berg's Blog right here on TechCareers.com Other recent articles from TechCareers How To Avoid IT Career Burnout Hiring Wave Bodes Well For Job Seekers

Search jobs on TechCareers Keyword(s):   Function: Information Technology Engineering State:   Post Your Resume |  Employers Area