Self-Employed Information Technology Professionals Anticipate Banner Earnings in 2006

Annual HotGigs.com Survey Explores Income Satisfaction, 2006 Income Projections, Hourly Rates, Job Satisfaction, Training Goals, Marketing Strategies of Self-Employed Technology Professionals

Minneapolis, MN (PRWEB) January 5, 2006 -- Self-employed information technology professionals anticipate banner earnings in 2006, according to the results of HotGigs.com's Annual "State of the Contract IT Marketplace" survey.

"Independent information technology contract workers continue to reap the benefits of contract employment due to large and small U.S. employers' tendency to use contingent employment strategies in place of full-time permanent IT staff," said Doug Berg, CEO of HotGigs Inc., a revolutionary contract talent marketplace that makes it easy for employers to plan for, acquire, and manage contract labor.

Of the HotGigs.com members responding to the survey—conducted November 28 to December 13, 2005—64 percent expect their contract earnings to increase in 2006, while 19 percent anticipate no growth in 2006 earnings, and 12 percent foresee a decrease in earnings. The findings show a rising optimism among self-employed IT workers who in an April 2005 HotGigs survey saw flat or decreased earnings in the first quarter of 2005.

The survey found that although contract workers predict strong earnings in 2006, the gains will not come from an increase in their hourly rates. The majority of respondents (61 percent) said their hourly rates would remain constant in 2006, while 32 percent said they planned to raise their hourly rates. Another 7 percent said they would be reducing their rates. Rates for self-employed workers vary dramatically. The survey showed that 27 percent of respondents billed at a rate of $50 to $75 / hour, 21 percent of respondents billed at a rate of $100 to $149 / hour, and another 21 percent of respondents billed at a rate of $75 to $99 / hour. Among the highest earners in the survey were technical project managers, IT managers, and database developers.

Although the self-employed expect higher earnings in 2006, 51 percent of survey respondents reported that their 2005 invoices were below expectations in 2005, while 34 percent said 2005 billings were inline with expectations, and another 15 percent stated 2005 earnings were above expectations.

Overall, survey respondents reported relatively high earnings when compared to full-time salaried professionals: 20 percent of respondents said they billed $75,000 to $99,999 in 2005; 19 percent said they billed $100,000 to $149,000 in 2005; and 26 percent said they billed under $30,000 in 2005, which may reflect the part-time nature of contract work for many self-employed IT workers who continue to work full-time jobs and supplement their income by “moonlighting."

One factor influencing less-than expected 2005 earnings had to do with a high tendency for contractors to engage short-term IT contracts. Only 12 percent of respondents said they had multi-year contracts, while 23 percent said their contracts lasted between six months to one year, 21 percent said their contracts lasted between three and six months, and 24 percent said their contracts lasted less than three months. The length of contracts was a predictor of overall annual earnings. Contractor-respondents earnings less than $30,000 a year in 2005 had a tendency to work contracts of three months or less in duration. Contractor-respondents earnings between $75,000 and $149,000 in 2005 had a tendency to work contracts of six months to a year in duration—or longer.

IT contractors responding to the survey were not inclined to market themselves aggressively. Some 23 percent did not actively search for new contracts in 2005, 27 percent actively searched for contracts two to five times during the year, and 19 percent actively sought out contracts an average of one time per month. Passive job searches dominate contractors’ job search behavior. When contractors were asked how they typically found new contract opportunities, they ranked referrals as first, client-initiated contact as second, and contractor resources, such as HotGigs.com, as third. Cold calling ranked dead last in terms of preferred contract search methods.

"The reluctance by many self-employed people to aggressively market themselves has a negative impact on their ability to increase their earnings throughout the year," said Doug Berg. "We created HotGigs.com to simplify the process of finding new contractual engagements.

"HotGigs has nearly $300 million in active contracts from small, medium, and large employers listed on our Website, making it easy for independent contractors to find challenging, well paying contracts," said Berg. "We're an ideal marketing tool for the self-employed IT worker who wants to ride into 2006 with new contracts."

About HotGigs.com:
Minneapolis-based HotGigs Inc. is a revolutionary contract talent marketplace that makes it easy for employers to plan for, acquire and manage contract labor. Thousands of employers use HotGigs.com to automate the process of finding reputable contract workers with the right skills at the best rates.

The solution provides:

• Absolutely free instant access to an expanding marketplace of independent contractors and staffing companies;
• Real-time data on contract labor rates for major outsourced workforce categories, including IT, HR, creative, marketing, accounting, financial, administrative, factory, and healthcare;
• A market for independent contractors and freelancers to promote their skills and availability to employers and staffing firms; and
• Streamlined Internet features, such as contractor profiles, customized search agents, peer networking tools, and one-click contact between employers and contractors.

Note to Editors:
For graphical illustrations and full survey results of the HotGigs "State of the Contract IT Marketplace" please contact HotGigs Media Relations Representative David Southgate at 787.992.8018, or visit http://www.hotgigs.com/marketing/template.cfm?page=survey_1

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