ITCareerCoach Training - Coaching » paycheck http://www.it-career-coach.net How To Take Your Career To The Next Level Mon, 06 Feb 2012 01:09:27 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 The Secret Path To Contract Programming http://www.it-career-coach.net/2007/07/16/the-secret-path-to-contract-programming/ http://www.it-career-coach.net/2007/07/16/the-secret-path-to-contract-programming/#comments Mon, 16 Jul 2007 08:00:38 +0000 ITCareerCoach http://www.it-career-coach.net/2007/07/16/the-secret-path-to-contract-programming/

Who is a contract programmer?

A contract programmer is a software developer who is paid an hourly rate for working on special software development projects for a period. Contract computer programmers are not paid salaries like full-time developers but hourly wages.

Contract programmers tend to be very project focused because they are hired to solve specific problems or code specific features and as soon as that is done, they have to move on to another project or find a new client.

Contract programmers are independent software developers who work with clients on a project-to-project basis. The relationship between a contract programmer and a client lasts as long as the client has a steady stream of work. What usually happens is that as soon as the client can’t find any work or the work starts dwindling down, the client initiates the process to end the relationship.

Contract computer programmers are not supposed to form strong emotional bonds or ties to their clients unlike their full-time colleagues because the nature of their work is temporary. That is why contract programmers are sometimes called temporary workers.

Contract programmers are specialists, experts and master craftsmen. When a client hires a contract computer programmer, the client expects to find a master programmer who will hit the ground running. This separates contract programmers from full-time software developers and the master craftsmen from the wannabe contract programmers.

A contract programmer is expected to start churning out high quality code, fixing bugs, improving their clent’s software and generally justifing their high pay by solving important problems within a few hours or days of starting work. Unlike full-time software developers who may take 6 months to 1 year to prove themselves, contract programmers who haven’t mastered their art well-enough to make a difference are usually dropped like hot potatoes by their clients.

Contract programmers may be W2 contract programmers or 1099 contract programmers. The difference lies with how their taxes are filed with the IRS.

The W2 contract programmer is paid by a recruiting agency that is also responsible for withholding taxes and providing liability insurance. Many recruiting agencies will also provide medical, dental and 401K benefits.

On the other hand, 1099 contract programmers, generally known as free-lancers, pay their taxes to the IRS and provide their own medical, dental and 401K insurance.

A contract programmer has the liberty of working as a W2 contract programmer with one firm and a 1099 contract programmer with another firm.

How long do contract programming projects last?

Contract programming projects typically last from a month to 5 years. The trend is towards fewer months and higher billing rates. The typical duration is 3 months, 6 months or 1 year.

How much do contract computer programmers bill?

Contract programmers typically bill anywhere from $50 per hour to $200 per hour.

What factors determine the contract programmer’s billing rate?

The factors that determine a contract programmers billing rate include:

1. Experience: The more experienced a contract programmer is, the more the contract programmer can charge

2. Demand: Some computer programming skills are in high-demand while others are not. So contract programmers who master computer programming skills that are in high-demand can bill at a higher rate than others

3. Client: The compensation provided for the same programming skills can vary widely by client with no other explanation other than one client having more money than the other

Who should be a contract programmer?

Contract programming makes sense for computer programmers who love to be independent or who do not want to climb the corporate ladder. It is also good for those individuals who want to make more money than is found in regular full-time software development. Finally, it works for those who can use their down-time in between projects to sharpen their computer programming skills, pursue other hobbies or take vacations.

What is the future or outlook for contract programmers?

The future is bright for contract programmers as more companies are trending towards out-sourcing their software development projects to temporary staffing firms or recruiting agencies that in turn out-source the programming work to contract programmers. Contract computer programmers are considered to be expert, highly-skilled craftsmen and their opinions and expertise are valued at client sites They are also paid significantly more money and do not have to stand inline or beg for a pay raise when they work for it.

How do you become a contract programmer?

The critical skills needed for a successful contract programming career are:

  1. Expert programming skills

  2. Well-crafted resume

  3. Effective job interviewing skills

  4. Aggressive Resume Marketing

Read this previous post titled “The keys of a successful computer programmer career” to learn more about these keys.

If you have these skills in abundance, you will do well in contract programming. If you don’t or will like to develop them, you should read “How to become a master contract programmer” or CLICK HERE TO GET YOUR COPY IN A FEW MINUTES.


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]]> http://www.it-career-coach.net/2007/07/16/the-secret-path-to-contract-programming/feed/ 0 Full-Time or Contract W2 Programmer Job, Which Is Better? http://www.it-career-coach.net/2006/08/26/full-time-or-contract-w2-programmer-job-which-is-better/ http://www.it-career-coach.net/2006/08/26/full-time-or-contract-w2-programmer-job-which-is-better/#comments Sat, 26 Aug 2006 20:38:53 +0000 ITCareerCoach http://www.it-career-coach.net/2006/08/26/full-time-permanent-employee-or-contract-w2-programmer-pros-and-cons/

full time programmers contract pros cons

full time programmers contract pros cons

Do you have what it takes to be a contract software developer (W2) or a full time permanent computer programmer (FTE)?

Or perhaps you have heard that contract programming is unreliable and full time employment financially unrewarding?

Enough of these myths. There are long term contracts that last longer than some full time positions and there are full time positions that pay better than some contract programming engagements.

Here are the differences that will really matter to you:

  1. Job Duration

  2. Benefits

  3. Job Satisfaction

  4. Paycheck

  5. Technical Skills

  6. Experience

  7. Entrepreneurism

Job Duration:

Contract programming jobs are of shorter duration than full time employment positions.

In the software development industry, computer programming jobs have a duration of 1 month, 3 months, 6 months, 1 year and more.

The challenge with contracting positions is that your recruiter may tell you that your contract is 6 months only for you to hear after 3 months that your contract has been terminated. With full time positions, you are more likely to be moved to another project when your current project is terminated or completed.

Benefits

Contract programming positions come with 401Ks, vacation time, vacation pay, sick days, medical, dental, flexible spending accounts, vision care, life insurance and disability insurance just like full time programming jobs.

The difference is that the quality of benefits or how much you pay for them may vary greatly from one recruiting firm to another recruiting firm.

So, while one recruiting firm may offer competitive benefits, another recruiting firm may offer benefits only if you willing to pay for that at a premium that is sometimes twice as high as that of a full-time position!

The smart thing to do is to go over the benefits with your recruiter and ask questions.

However, with contract programming positions, you also have the option of asking your recruiter to remove your benefits package and increase your hourly compensation or billing rate

.

Job Satisfaction

As a contract programmer you are expected to derive your job satisfaction from being good at what you do.

You build a reputation backed up with skills and experience on getting in, doing a good job and then getting out.

As a contract computer programmer you are expected to deliver good code, on time and on budget and you must enjoy being held to high quality standards in terms of the quality of your code.

As a full time computer programmer, you are expected to love the company you work for.

Your job satisfaction is driven by working with a team of people for a common set of goals.

Over time, the bonds, affections, ties with each other and your company deepens.

You may not face the same time, budget or quality of code pressure as the contract programmer who has a higher reputation to live up to!

Paycheck

As a contract programmer you may earn significantly more than full time permanent employees.

However, unlike contract programmers, full time employees do not have to look for a new project or client every 3, 6 or 12 months.

So, even though contract programmers earn a lot more than full-time software developers when they are working on a project, the total bench time or the unpaid time spent in-between projects can affect the stability or dependability of a contract programmers pay.

The shock of sitting at home for 1 month, earning $0 (zero dollars) after a highly successful project that may have lasted 6 months can be quite unsettling for some contract programmers.

This is one major reason why some computer programmers prefer FULL TIME to CONTRACT (W2) computer programming positions.

Technical Skills:

Contract programmers tend to have sharper skills, because they make a living putting a demand on those skills every day (at least that is what clients think).

Since contract programmers are generally paid much more than their full time colleagues, very few clients hire a contract computer programmer with rusty skills.

Also, contract programmers can choose the clients and projects they work on. which is something that full-time developers are limited in doing.

Contract programmers prefer projects that involve the latest technology or skills, since that’s where the money is.

Full time computer programmers on the other hand tend not to be so obsessed with working on leading edge technologies and they are not generally expected by their employers to have the sharpest skills.

This is partly because full time programmers are expected to be business domain experts and not just technology experts.

So, the value of a full-time computer programmer lies in both the domain / business knowledge as well as the technology skills.

Experience

As a contract programmer, you need to have relevant industry and experience to find work.

If your area of expertise is brokerage or java or .net, both recruiters and hiring managers will scan your resume for the number of years and projects where you utilized those skills.

However, for full time employment positions, the hiring managers and recruiters are more apt to look at your general industry experience and not just the experience needed to deliver the next 3 months project!

Entrepreneurism

Contract programming requires a certain degree of risk tolerance and entrepreneurism.

Contract programmers have to constantly research the market for new technologies and skills that add value to their clients while delivering increased compensation to them.

They have to constantly be on the go, marketing their resume, skills and experience to new clients every few months.

They have to adapt to new environments all the time as they are constantly changing jobs and clients.

They have to constantly make their clients (employer) happy or they may get fired and their contracts terminated.

Contract programmers have to accept the inherent risk that despite their best effort, a proposed 12 month project can turn into a 1 month failed engagement.

Ultimately the contract programmers that last have to accept full responsibility for their careers.

Decide What Works for You

The conclusion is that the decision to be a contract computer programmer or a full time permanent employee depends on your personality, risk tolerance, financial expectations and your own situation.

Whether you decide to become a W2 contract programmer or a full time employee, I hope that I have helped you become more informed about the two possible career paths.

To learn more about fast tracking your computer programmer career, visit this resource.


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