An IT contractor invoice is a document designed to provide IT (Information Technology) professionals with a straightforward means of charging for services they provide. IT contractors act as companies or freelancers, engaging in business-to-business contracts that assist both startups and established businesses with consulting and short-term projects.
What is IT Contracting?
IT contracting is a means of offering technical services on a contractual basis rather than working as a standard salaried employee. Companies often employ the services of contractors when a project reaches a point where work cannot continue due to unique problems that they may not be equipped to handle. Companies hire contractors that specialize in areas that need assistance in order to keep projects moving forward. Contractors can be hired for any length of time, with the average duration being six (6) months.
Pros and Cons of Being an IT Contractor
Contracting for IT services is not for all. But for those that can handle a certain amount of risk and other drawbacks, the benefits can be worth it.
- Increased salary – Due to the convenience offered to companies, contractors normally charge higher rates. Additionally, because they do not have standard employee benefits, they often charge more to cover insurance, travel, and other business expenses.
- Variety – Contractors can find themselves working in entirely different industries from one contract to the next.
- Control – Schedules, vacations, sick days, and all other aspects of work and home life are determined by the contractor. If they are successful, an IT contractor may be able to choose from a range of clientele and live and work in different areas.
- Work isn’t guaranteed – If the contractor can’t line up jobs, they can find quickly themselves in financial trouble. To avoid this, many contractors build up a financial cushion for any lapses between work.
- Time-off is unpaid – There is no PTO in contract work. Because of this, contractors need to factor in vacations, holidays, and periods of downtime into the rates they charge.
IT Contractor Salary and Hourly Pay ($/hr)
The salary of a contractor in IT depends on their 1) experience, 2) specialties, 3) location, and 4) hours worked. For those motivated to expand their skills, network at every given chance, and work long hours, the payoff can be great.