Becoming an IT contractor in Engineering

The IT contracting world offers a rewarding blend of flexibility, autonomy, and potentially high earnings.

For professionals in the engineering sector, contracting is an attractive pathway that serves up diverse, cutting-edge projects, while allowing control over day-to-day schedules and career as a whole. 

When two technical worlds come together, rather than collide

Whether you're a seasoned software engineer or a systems architect, stepping into the IT contracting world requires a different mindset and a strategic approach.

Here, exclusively for Free-Work, I will explore ten essential steps to becoming an IT contractor in the engineering sector, writes Ben Quinn, head of technology recruitment at Leap29.

1. Assess your skills and market demand

Before transitioning to IT contracting, it's crucial to assess whether your skills are in demand in the engineering sector.

Contracting is all about offering specialised expertise that organisations need for short-term or project-based roles.

The engineering sector spans several subfields, such as:

• Software engineering

• Systems and network engineering

• Cloud infrastructure and DevOps

• Data engineering

• AI and machine learning

These five subfields are constantly evolving, so IT contractors who want to succeed in the engineering sector will need to stay updated with the latest tools, programming languages, and methodologies. 

Do thorough research on which skills are most sought-after and in what industries.

Platforms like LinkedIn, Glassdoor, and specialist job boards can provide insights into market trends and help you identify gaps you can fill as a contractor.

2. Build a strong portfolio, showing outcomes and value-add

As an IT contractor, your portfolio can be your strongest asset to land work 

Prospective clients will want to see your past achievements, so a well-structured portfolio showcasing your technical abilities and relevant project experience is essential.

Highlight your key projects and outcomes, focusing on your problem-solving skills and the technologies you’ve mastered.

Six components for IT contractor’s portfolio, are….

Here’s what to include in your portfolio for engineering sector gigs:

1. A detailed description of past projects (without revealing confidential client information).

2. The specific tools, frameworks, and programming languages used.

3. Your role in the project and how you contributed to the success.

4. Tangible results (e.g. reduced downtime, improved efficiency, developed scalable solutions)

5. If you're transitioning from full-time employment to contracting and don't have any freelance projects yet, your previous work for employers can be included in your portfolio.

6. Additionally, open-source contributions or personal projects that demonstrate your technical prowess are valuable assets.

3. Legal and financial setup

Setting up the legal and financial structure for your IT contracting career is a critical step.

Unlike full-time employment, you’ll be responsible as a limited company IT contractor for managing your taxes, contracts, and any benefits.

4. Choose a business structure

Self-employed technologists can operate as sole traders, but setting up a limited company traditionally offers tax advantages plus, as the name implies, the safeguard of limited liability.

Consulting with an accountant or adviser can help you decide the best structure as an IT contractor who wants to work for engineering clients, based on your individual goals.

5. Register for taxes, and know the key tax / HMRC rules

Depending on your country, you may need to register for VAT or “sales tax,” if your income exceeds a certain threshold.

In some regions, IT contractors are also subject to additional tax or compliance considerations, notably IR35 in the UK.

You need to be sure you understand your tax and compliance obligations and, again, a good adviser can help you on the practical, commercial and tax considerations.

6. Set your price

Calculate your daily or hourly rate by considering your skill level, experience, and the going rate in the market -- which you can see by browsing your skills on job boards and noting what they tend to command.

Keep in mind that as a genuinely self-employed IT contractor, you’ll need to cover your own benefits, healthcare, and pension contributions, so factor those into your pricing model and final fees.

7. Put yourself out there

Networking is one of the most crucial aspects of a successful IT contracting career in Engineering.

Many contracts nowadays come through referrals or direct connections rather than job boards or agencies.

Start by leveraging your existing network of colleagues, former employers, and industry contacts.

Attend industry events, join online communities, and engage with others in the engineering sector through platforms like GitHub, Stack Overflow, and LinkedIn.

Do also build relationships with recruiters who specialise in engineering contracts, as they often have exclusive access to opportunities.

8. Invest in marketing

Having an online home for your professional portfolio, and a location to direct those interested in other aspects of your services, is a must.

Marketing yourself in this way is key to attracting clients and building a brand which can stand out in a competitive market.

So create a professional website (and a LinkedIn profile) that clearly showcases your expertise, products/services, and even your availability.

Regularly updating your online presence with industry insights, blog posts, or relevant news can position you as an expert in your field, increasing your visibility to potential clients.

9. Four key ways to find IT contracting opportunities in Engineering

To find IT contracting opportunities in the engineering sector, you can explore four major avenues:

1. Freelance marketplaces/platforms and project skills websites

Websites like Upwork, Freelancer, and Toptal connect contractors with companies in need of specific technical skills.

2. Specialist IT job boards

Sites such as CWJobs, Dice, and Hired focus on technology and engineering jobs, including contract positions.

3. Recruitment agencies

Many recruitment firms specialise in matching contractors with engineering companies. Build relationships with recruiters who work in your niche, as they can provide access to exclusive contracts.

4. Direct Client Outreach

If you have specific engineering companies in mind where you’d like to work, consider reaching out directly to hiring managers or decision-makers.

Pitching your services directly can sometimes bypass the competitive job board and agency landscapes.

10. Grasp the importance of contracts, and upskilling

As an IT contractor in Engineering, your income and career success often depend on how well you negotiate your contracts.

Understanding the scope of work, project timelines, and deliverables is essential before you agree to terms.

Your income and career success also hinges on how cutting-edge and sought-after your IT skills are. So continuously invest in your professional development by taking courses, earning certifications, and exploring new technologies. The more versatile and skilled you are, the better positioned you’ll be to attract lucrative contracts and adapt to shifts in the industry.

Becoming an IT contractor in Engineering: wrap-up

Becoming an IT contractor in the engineering sector can be an exciting and rewarding career move. It offers autonomy, flexibility, and exposure to diverse projects.

By honing your technical skills, building a robust portfolio, and navigating the legal and financial landscape, you can establish a successful tech contracting career at potentially a leading engineering company. With the right approach and mindset, plus some support, you’ll be well on your way to thriving in the engineering sphere of IT contracting.