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Contract recruitment continues to grow and remains fundamental to the development of new tech sectors, as the process of digitalisation continues to transform our society and where the demand for new tech skill-sets outstrip supply.

Contract recruitment offers a solution to access this talent pool by hiring individuals for a specific duration. However, it is crucial to determine whether contracting can truly benefit your business and if it aligns with your requirements. 
From a contractor’s perspective, you can remain agile, upskilled and gain constant exposure to a wide variety of businesses and opportunities.

This blog delves into the advantages and disadvantages of contract recruitment for businesses as well as job seekers, emphasising the flexibility and adaptability it offers, enabling you to make an informed decision for your next recruitment hire or job opportunity.

Pros and cons of being a Contractor
Overall operating as a contactor brings a number of benefits

  • You can earn premium day rates and have greater control over your personal earnings via your Limited Company.
  • Your work and client environments will be varied – mostly there will be interesting and challenging projects.
  • You are disconnected from the distractions of corporate politics that permant staff members endure – do not underestimate this benefit.
  • More access to a wide variety of large projects, therefore making the work more challenging and more high profile.
  • Flex that entrepreneurial spirit; being a contractor is about developing, promoting and operating your own business. It is not about grabbing a name from Companies House and a business bank account. You will need your own domain name, website, tech just like any business requires.

It is equally important to consider the disadvantages of contracting and these include:

  • There is less security and higher risks. If you are on an Outside IR35 assignment you may well be on zero notice period and have no guaranteed hours/days.
  • It’s not as tax efficient as it used to be!
  • You may well be joining a project under pressure and Contractors are often used as additional resource to deliver against tight deadlines.
  • You may be given mundane work. The work that no one else wants to do!
  • You can’t spend all of your earnings. Keeping money to one side for leave periods or times when you may be in-between assignments.
  • Once you start contracting it’s hard to go back to a permanent role, both because a successful contractor enjoys all of the benefits (see above) too much but if you’ve been a contractor for more than a couple of years, permanent hiring managers do not view you as a long term hire.
  • You don’t receive training so you need to pay for your own courses and certifications, to keep those skills sharp.


Pro’s and Cons of hiring Contractors


  • You can quickly widen your business capability and tender projects and contracts you may not previously have considered, knowing that ISR can source and mobilise new technical skill sets. ISR have experience of strengthening bids with technical profiles and accompanying costings, often as a free service to long standing clients.
  • Outside IR35 Contractors will work from a very prescribed and specific set of tasks and deliverables set out in a Statement of Works. This is a quasi-consultancy service but without the premium.
  • Resource can be switched on and off instantly. For contractors to operate OutsideIR35 zero notices are built in to offer absolute flexibility in resourcing. 
  • Contractors can be excellent value for money. Day rates can look expensive but compared to the overall employment costs of a permanent employee there may only be a 20-25% premium. However contractors are often at the top of their game technically and as a resource that is focused only on technical delivery, the output more than makes up for the premium:
    For example:
    £60K salaried employee = £78,000 cost to business
    £400 per day contractor (5 days per week x 46 weeks) = £92,000
  • Offers flexible resourcing to smooth out resourcing over peaks and troughs in projects 



  • If you lack a knowledge transfer strategy, there is risk of losing the lessons learned and capability once the project is finished.
  • Some skills can be very expensive and the budgets may well be better spent re-training existing permanent team members.
  • The relationship is Business-to-Business and can feel transactional

ISR offers contract recruitment services. With our extensive experience in IT and Digital, Telecoms and Transport recruitment spanning over 19 years, we have successfully provided contract resources to clients through peak periods; troubled projects; major contract wins. 

Contact us today to explore how we can collaborate to find the perfect fit for your needs. Discover our live jobs here.

In summary, contract recruitment in technology provides flexibility, access to specialised skills, cost-efficiency, rapid onboarding, risk mitigation, innovation, and reduced administrative burdens, making it a valuable strategy for both employers and job seekers in the dynamic and ever-evolving tech industry.