After years of budget cuts, surveys show that tech leaders have started looking for ways to add new technologies, strengthen security and prepare to implement artificial intelligence (A.I.) without increasing full-time headcount.
The directional shift is proving to be a boon not only for long-term contractors but former full-time workers who are having a tough time finding permanent positions after being laid off. “Absolutely, there are signs that things are looking up in the market for contract technical talent,” confirmed Caitlin (Herman) Wehniainen, staffing and recruitment expert for OnCueHire. “We’re starting to see budgets expand and projects that had been put on hold come back online.”
However, before you hang out your shingle and hope that contract opportunities will start pouring in, you need to understand the skills that are in demand and what it takes to compete for assignments in the current market.
The Focus is on High-Impact Strategic Initiatives
After downsizing, managers still aren’t using contractors to fill in for absent employees or convert to full-time status after a trial period. “Companies are reviving initiatives that are focused on driving business growth and operational efficiencies,” Wehniainen expanded.
Some clients are looking to enter into managed service relationships so they can engage entire teams of contractors to execute projects that are urgent and strategic in nature, explained Amar Panchal, CEO of technology consulting and staffing firm Akraya.
What do these changes mean for contract candidates? On the plus side, you will have the flexibility to choose projects that interest you, increase your marketability, or even help you change specialties.
For example, for anyone looking to get into cybersecurity, this is the perfect time to get a relevant certification and gain hands-on experience in the contracting field, Wehniainen said.
However, if you prefer short-term assignments or working on more routine tasks, this may not be the ideal time to jump into contracting.
Today, most assignments require a 12- to 18-month commitment, Panchal explained. But after you finish, you can take a break to reassess the market conditions and your career options. You can also get a better sense of the type of environment you prefer.
Some Skills are Hotter than Others
Many of the projects that are coming back online require professionals with niche skillsets and specialized expertise that companies don’t have in-house.
For instance, as ERP systems advance with AI, there’s a growing demand for developers or specialists who know how to use intelligent automation and other technologies to automate business processes and optimize workflows within legacy ERP systems.
There is also a growing demand for techno-functional experts who understand both the technical and the business aspects of a unique industry or business function, such as supply chain, e-commerce, CRM or human resources. Companies are investing in technologies that make supply chains more resilient to disruption, Panchal said.
In another post-pandemic trend, companies are looking for contractors to automate cloud deployments as they continue to invest in cloud infrastructure.
At the same time, hospitals and health systems have boosted spending on digital health initiatives. In fact, a recent survey showed that nine in 10 healthcare executives will continue to invest in staffing digital health technology teams.
As struggling retailers look to improve their e-commerce strategies, there’s been an uptick in demand for contract developers and UX/UI designers who specialize in e-commerce solutions. Retailers also need business analysts to understand how to reach customers in an increasingly competitive online marketplace.
Biggest Data
There’s a big demand for contract professionals with data-related skills to help businesses prepare for the AI revolution.
Many Fortune 1000 companies still rely on manual processes to manipulate, analyze and draw insights from large amounts of data, Wehniainen explained. At this point, they’re looking for data engineers, data scientists or data analysts on an interim basis to help with a variety of tasks such as drawing insights from data or automating reports.
Finally, with the growing risk of cyber espionage and ransomware attacks, especially in the banking and financial services industry, any tech professional with experience in risk, compliance or cybersecurity can find opportunities to leverage their talents on a contract basis.
How to Cash In On Project Opportunities
While the demand for contractors has steadily improved, wages have remained relatively static.
Tech managers are well aware that they have the option to tap nearshore or offshore resources for many types of projects, which can have an impact on the hourly rates they are willing to pay.
However, if you bring something highly valuable to the table like problem-solving skills or the ability to draw business insights from data or communicate effectively with stakeholders, that may give you an edge over outsourced talent. The key is to make sure your online profiles, code repositories, resume and project portfolio are up to date and clearly reflect what you have to offer.
Wehniainen encourages aspiring contractors to go on interviews, especially if you’ve been working full-time and haven’t interviewed in a while: “You’ll build your confidence and skills the more you interview, and you never know what kind of deal you may be able to work out with the manager.”
Panchal agrees, pointing out that the interviewing process for contract work isn’t as rigorous or time consuming as the process for full-time jobs. “Managers tend to be more flexible, less picky when they screen and select contractors for projects,” he said.
Most of the time, you can get a decision in a matter of hours or days, not weeks. Then you will have the option to negotiate, accept or keep looking. Given the challenges of job hunting for full-time positions, pursuing contract opportunities could be a refreshing change.
