More IT Specialists Opt For Self-Employment

expat network

More IT Specialists Opt For Self-Employment

The number of information technology specialists moving into self-employment has increased by 48% in five years, up from 143,000 211,000. According to research by professional services firm Procorre, the number of contractors in IT is growing at one of the fastest rates of any sector.

The increase is being driven by rapidly growing business investment in IT, which is underpinned by several fundamental factors including:

1) Businesses unlocking budgets for IT investment after a considerable period when cost-cutting meant IT projects were viewed as a low priority. As the economy improves, businesses are now bringing in IT contractors to deliver upgrades to their existing systems that will improve efficiency, productivity and customer service.

2) The explosion of the ‘app economy’, estimated to be worth £4 billion to the UK economy this year but expected by some to rise to £31 billion by 2025, attracting entrepreneurs and venture capital investment.

3) The growth of mobile commerce (transactions via mobile devices) means that businesses are investing in their web presence and e-commerce system to make them compatible with mobile devices.

4) Businesses are investing in cloud computing for data storage and software to offer their employees greater flexibility and boost the productivity of a business.

With more upcoming projects requiring their expertise, IT specialists are in a strong position to pick and choose which projects they work on. IT departments suffered from comprehensive cuts during the financial crisis as businesses struggled to manage costs. Many businesses will not have upgraded their IT infrastructure which is now outdated and in desperate need of an overhaul to bring it up to scratch.

Continued failure to address this may end up hitting a business’ productivity and eventually profits. Businesses will require IT specialists for the project management of the upgrade as well as contractors with a high level of technical skill to help build the project.

The IT sector has traditionally always attracted high numbers of self-employed contractors as businesses may only require the expertise of additional IT professionals for a limited period to help deliver specific projects.

This is an arrangement that maximises income for the contractor and minimises payroll costs for the employer.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.