Job market question - contracts vs perm - Software-Eng

JXStern wrote:
> I've been doing primarily contract software development for twenty
> years. Not necessarily the career I envisioned, but the market for
> contractors/consultants has been very strong for at least that long.
> I've always talked as well to "perm" jobs, even taken a couple - that
> turned out not to be permanent as promised past a year or two, little
> companies folding, big companies selling divisions, cancelling
> projects, etc.
>
> My question is, are other people seeing a shift just this year, away
> from contracts offered? I'm getting calls from recruiters, but they
> seem to all be for "perm" jobs.
>
> I know part of it is me, I have more experience (more than the three
> years which is considered "senior" in this industry!), and of course I
> *try* to get higher-end jobs with higher-end compensation, and there
> are always fewer of those, and most should be filled internally. But,
> well, like I said, I've been "senior" for let's say seventeen years,
> and it never seemed to be so quiet on the contract front before.
>
> I can guess why it *might* be evolving so, but my first question is,
> IS it really evolving so, or is this just a local situation, maybe
> even local to just me and a little random fluctuation?
>
> I'm looking for trends.
>
> Any factoids on your recent job search and those of your friends and
> family, welcomed, thanks in advance.
>
> J.

In my observation, there are no "perm" jobs in IT anymore. IT is
constantly in flux and companies are always hiring and dumping per
internal or external biz cycles. I think what is happening is that
many companies are using "perm" to hire contractors without having to
pay the contracting premium. It used to be that contractors were given
rates higher than perm because of lack of stability (gaps between
contracts) and no benefits (medical, retirement). But now that
benefits and stability are dying for *perm*, its cheaper to hire
people under the category of "perm". Same work, same stability (none),
and same benifits/perks (none). It is just called "perm" instead of
"contractor", and tends to pay a bit lower.

That being said, I am probably exaggerating a little and "perm" does
offer more stability and beni's than temp work. However, the
difference is growing smaller over time, including wage differences.
These changes came about because of globalization, technology (web,
email), and changes in business practices (Just-in-Time workforce).

The upside is that choosing the "wrong one" makes less of a
difference. It's like choosing between a Pinto and a Gremlim :-)

-T-