Contract work is becoming an increasingly popular solution on the IT market; so what influences a candidate’s decision when it comes to them choosing their form of employment? Well, as it turns out, there are several reasons for doing so, particularly as this form of work has many attendant benefits. B2B in the IT industry – when is it worth taking the plunge? What you should pay attention to when signing a contract with an external company?

Last year, the IT industry, like so many, was hit by the coronavirus crisis. However, in this instance, for most specialists, the new reality was far from gloomy. Indeed, demand for specialists in the IT industry grew, as they were seen to be the missing piece of the puzzle when it came to project implementation. Companies are now faced with the challenge of not only meeting the expectations of candidates interested in an employment contract, both also those of contractors looking to provide their services based on a B2B contract.

The benefits of B2B

Throughout the pandemic, the overwhelming majority of IT specialists have looked for stability, but the numbers wanting to work on the basis of a B2B contract have also grown commensurately. One of the most motivating factors in terms of this trends was the possibility of achieving higher remuneration, remote flexibility, and the possibility of developing skills and competences.

When it comes to the choice of a B2B contract, flexibility always comes to the fore. Such contract work not only gives the ability to quickly move from one project to the next, but you also have the opportunity to develop and work with a variety of technologies. Contractor availability is usually estimated from two weeks to a month, which is quite an important criterion for companies, taking into account the current market situation. Other arguments in favour of contract work are the tax aspects and higher rates offered in this form of employment. The time when contract work was exclusively for the low-paid and low-level jobs is over. Today, almost every branch of industry employs contractors in specialist or managerial positions. Additionally, these types of projects allow for professional development. Working on projects provides a unique experience that can be embedded in your resume; and can also help you to expand your network of contacts.

B2B in the IT industry - what to pay attention to when signing a contract with an external company

Although there are undoubtedly advantages to working on a B2B contract, there are also aspects that should be kept in mind when signing a contract with an external company. First of all, there’s the possibility of interruptions in the provision of services; and also the potential liability of the contractor for any damage caused in the course of the services.

While free service interruptions can be relatively easily neutralized by adding service-free days to the contractor’s hourly rate, it is not so simple to eliminate the risk of an immediate termination of cooperation. When signing a contract, it is worth paying attention to continuity aspects.

Imagine a hypothetical situation in which a critical application has been interrupted as a result of an error on the part of the contractor. The client of an outsourcing agency will then lose the continuity of its business services and incur measurable losses. It may happen that this company will want to claim liability for losses arising from the contractor’s actions. As you know, people running sole proprietorships are liable in such situations with all their assets. What can help with mitigating such a risk is the possession of a third party liability insurance policy. Indeed, this solution is mandatory in most Western European countries. A contractor deciding to cooperate with a company is obliged to present a policy for a specific amount. In Poland, I have not encountered any obligation to take out such a policy, but it is worth remembering about this option. The amounts for this type of insurance range from PLN 300 to PLN 1,000 per year, depending on the coverage needed.

Making that decision – a recap

Candidates find it difficult to decide whether it is beneficial for them to leave their full-time job in favour of contract work. Many jobseekers are concerned about the temporary nature of IT Contracting. Are these fears justified? The booming IT B2B market is proof enough that contract work can bring many benefits, such as a flexible form of employment, higher earnings, career development opportunities, and working with interesting projects and technologies. A great deal depends on the business profiles of the specialist and external contractor; but also on the provision of the B2B contract itself. So it is worth considering not only the appropriate type of contract, but also all related aspects.

About the Author:
Bartosz Maligłówka has just been made the ITC Sales Manager in the recruitment and outsourcing company Devire. Bartosz is responsible for the sale of IT outsourcing services, team management and cooperation with the company’s strategic clients. Boasting over ten years of experience in working for leading recruitment companies in the IT area, he began his professional career in permanent recruitment. Then he dealt with the sale of IT services. Bartosz will brings his skills and experience to bear when it comes to the development of the sales unit of ITO services in Devire.