Exploring the 2024 Tech Contractor Landscape

Welcome to the 2024 edition of IT Search’s Contractor Market Insights. This year, we’re providing hiring managers with a comprehensive look at the current landscape for contractors in Ireland. We will look at the Contract market as a whole, when to hire a contractor, the benefits of hiring contractors as well as look at some data and insights from Contracting Plus which looks at why 2024 is a particularly good time to hire contractors. 

In 2022 and 2023, Ireland experienced a continued surge in demand for strong IT professionals. However, 2024 has seen a deceleration in this rapid hiring trend, particularly in the first quarter. This period marked a return to pre-COVID-19 hiring patterns, with a notable increase in contract hiring compared to permanent positions. This shift is likely more attractive to hiring managers as it offers greater flexibility and cost-effectiveness, allowing companies to scale their workforce according to project needs and economic conditions without long-term commitments. 

As companies scale and expand internationally, the debate around hiring an employee versus an independent contractor becomes crucial. Given the myriad laws, tests, and definitions surrounding contractors and employees, navigating this landscape can be challenging. Understanding the differences between independent contractors and employees is vital for maintaining compliance and safeguarding the company’s interests.

When to Hire a Contractor

The decision to hire a contractor should be made after considering the following factors:

• The work is not part of the company’s core business
• The role is for a short-term or seasonal project
• The work does not require close supervision

Many companies opt for independent contractors because costs related to taxes, benefits, and administration are significantly lower. However, there are both advantages and disadvantages to this approach.

Benefits of Hiring Contractors:

Flexibility: Independent contractors provide the flexibility to hire for specific projects or tasks as needed. When the project is completed, the contract ends, eliminating the need for layoffs.

Specialised Skills: Contractors bring specialised skills and come fully trained with the necessary tools, allowing them to be productive right away without needing any additional training.

Legal Safeguards: Since contractors operate as independent entities, there is a reduced risk of lawsuits and legal actions.

Why hire contractors in 2024? 

Based on Ireland Projects Economy Research by Contracting plus

• Expertise: In 2024 the average of a contractor in the tech space is 43 years, majority of which have specialised their skills over 20 years and are an extremely attractive talent pool to pull from. (“Ireland’s Project Economy 2024”)
• Cost: The average daily rate of contractors has dropped by 6% since 2023, meaning the rate hike we saw in 2021-2023 has begun to level out again. Hiring managers are able to access skilled professionals for very affordable and attractive rates
• Commitment: The average contract length is 15 months within the technology sector with 58% of contracts being up to 12 months. Contracting Plus have recorded a decrease in shorter term contracts, making up only 17% of total contracts vs 32% for the same period last year. (“Ireland’s Project Economy 2024”)
• Passion: Contractor are passionate about the projects they embark on (87%) and the flexibility they have to get the job done based on their experience to date (79%). (“Ireland’s Project Economy 2024″)

This combination of expertise, affordability, and passion makes hiring contractors a great option for hiring managers in a complex hiring environment. Stay tuned for the next part of our contract series where we will showcase the advantages of partnering with IT Search. Additionally, we’ll share testimonials from our global clients who have successfully utilised our contracting services.