More women than ever before are joining IT businesses as contractors, attracted to the more flexible working practices.
According to a study by accountancy business Nixon Williams, the number of female IT workers switching to self-employment increased by almost 25 percent between 2016 and 2017. Women now account for 16.5 percent of the total IT contractor market, up from 13.8 percent in 2016.
Chief executive officer of Nixon Williams Derek Kelly said that there were more women in IT in both permanent and contracting roles, but the increasing proportion of contractors who are women is particularly significant as contractors tend to earn more than their permanent counterparts, which suggests that the pay gap between men and women in the IT sector is likely to be narrowing.
Generally the number of IT workers now self-employed has increased by 4.5 percent over the last 12 months – more than the general IT workforce increase of 3.9 percent year-on-year.
“The increase in the proportion of the IT workforce operating as contractors has been driven by demand from both IT professionals and the end users of their skills. The shift in the composition of the IT workforce since the financial crisis is doubly remarkable because much of the change is due to an influx of women into contracting.”
Although contracting is generally riskier than standard employment, more people are recognising the benefits of working for themselves as in-house benefits are losing momentum, he said.
“In areas which suffer from chronic skills shortages, such as IT and engineering, many contractors are rarely out of work, and higher levels of pay generally more than compensate for any gaps between contracts”, Kelly said.
It has greater benefits for cash-strapped businesses too. Because firms can’t guarantee their cashflow with the threat of Brexit, businesses are favouring using contractors, which present a smaller financial risk.
