IT CONTRACTOR RATE GUIDE - Donnelly &...
Transcript of IT CONTRACTOR RATE GUIDE - Donnelly &...
IT CONTRACTOR RATE GUIDEThe New York Metro IT Market
NEW YORK METROIT CONTRACTOR RATE GUIDE
2www.donmor.com
Before diving into a discussion of current IT contractor
rates, it’s crucial to get a feel for the state of the current
tech market in the New York region. While this is a
very high level overview, it is nonetheless immediately
clear why many companies are getting so competitive
when it comes to hiring tech talent, and why so many
tech professionals and companies alike are beginning to
more fully embrace the growing trend towards contract-
based employment.
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A long-standing global powerhouse in a number of sectors, most notably finance,
media, and commerce, the State of New York is clearly no stranger to the
spotlight. New York City itself, serving as an anchor to the entire state, is the
most populous city in the US, a bustling hub of activity and innovation.
The state’s unemployment rate has been dropping rapidly, landing most recently
at 5.7%, the lowest since August of 20081
. Zoom into the tech industry, and you
can’t fail to notice the astronomical job growth, exceeding that of Silicon Valley
and growing an astonishing 40% in the last six years2
. It’s little wonder why the
city has been nicknamed “Silicon Alley,” in recognition of this growing sector.
Of course, it’s important to recognize that tech employment isn’t limited to
merely one industry; IT jobs are infused throughout most sectors. A recent study
discussing NYC’s growing tech “ecosystem” reports that as of 2014, there were
150,000+ tech jobs in non-tech industries and 58,000 in the tech sector itself3
.
Overall, NYC’s tech industry has helped generate over 500,000 jobs.
And this tech boom is clearly following an upward trajectory. The city’s mayor,
Bill de Blasio, recently laid out his plan to continue strengthening the city’s
tech scene4
. The cornerstones of this plan are education, infrastructure, and
innovation; a strategy that should succeed both in enlarging the tech talent pool
as well as the number of tech-related jobs.
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While de Blasio’s efforts are focused on building a stronger talent base for the
future of tech innovation, it doesn’t necessarily solve today’s challenge of finding
enough qualified IT professionals to satisfy increasing demand. Employers
searching for the best team members are fighting to gain a competitive edge in
recruiting and retaining top talent.
While this often includes an in-depth analysis of existing compensation
structures and benefit offerings, many companies are also beginning to tune
into the advantages of a contingent workforce. For contractors themselves, the
benefits of both short- and long-term freelance work are many, including variety
of work and higher pay. Consequently, there seems to be a growing movement
towards this trend of workers. In fact, a recent study published statistics showing
that a massive 34% of the US workforce now consists of freelancers5
.
With these industry highlights and trends in mind, it is easier to approach the
discussion of IT contractor rates. In the following pages, we’ll present some data
that we hope helps to provide a more stable sense of direction as you navigate the
hiring process.
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A Quick Overview of Different Contracting ScenariosThe following contractor pay rate guide is based on median wages for highly
skilled professionals with at least 7 years of experience. However, it’s essential to
bear in mind that these rates are affected by a number of factors. Beyond skills
and experience level, perhaps the most important factor is the type of contract a
given IT professional has chosen: W2, 1099, or Corp-to-Corp.
W2 ContractorsSimilar to a regular W2 employee but on a contract basis, a W2 Contractor is
on your payroll (or on the payroll of your staffing partner). This option mitigates
IRS issues down the road, but also leaves you responsible for the costs of payroll,
withholdings and taxes, as well as any mandatory healthcare coverage. Because
these obligations are in your court, the pay rate of a W2 contractor will typically
be less than 1099 or Corp-to-Corp contractors.
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1099 ContractorsAn independent 1099 contractor is essentially the sole owner of an
unincorporated business entity. In this scenario, the contractor is responsible for
paying all income taxes and FICA taxes. This takes any payroll expenses entirely
off your hands, though it also means that the pay rate will likely be higher.
Because you’re relying on the contractor to take care of all the tax obligations,
you may be at a higher risk of an IRS audit down the road.
Corp-to-Corp ContractorsA Corp-to-Corp contractor has set up their own business corporation of which
they are an employee. Like a 1099 contractor, they pay all their own taxes but in
this scenario, you are better protected against any IRS risk. Because of the various
costs involved in setting up an incorporated business, a Corp-to-Corp contactor’s
rate will likely be significantly higher.
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Position Bill Rate Per Hour*.NET Web Developer $102.85
Application and Infrastructure Security Architect $98.45
Application Architecture & Design Developer $115.96
Application Developer $96.25
Business Analyst $77.00
C Level Programmer $103.40
Cloud Based (Microsoft, Amazon, Aqua, Oracle) Administrator $104.50
Cloud Computing Developer $104.50
Customer Relationship Management (CRM) Developer $101.75
Data Center Disaster Recovery Analyst $104.50
Data Center Environment Management, Engineering and Support $88.00
Data Warehouse Manager $107.25
Database Administrator $96.25
Database Architect $107.51
Database Developer $85.79
DB2 Mainframe Database Administrator $90.25
Desktop Support Specialist $47.54
Desktop and Application Virtualization Administrator $71.50
Disaster Recovery Specialist $93.50
Drupal Developer/Architect $103.95
Enterprise Security (AV, Encryption, DLP, PCI) Architect $101.75
ERP and Vendor Product Development $79.36
GIS Support $96.25
Handhelds Application Developer $99.00
HP Quality Assurance Analyst $82.50
Hyperion Developer $115.50
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IT Risk and Compliance Auditor $88.00
IT Security Architect/Engineer $104.50
IT Security Operations Specialist $90.75
ITIL Process Analyst $104.50
IVR XML/VXML/JAVA Developer $93.50
Java Developer $95.25
Jr. Project Manager $74.25
Kronos Developer $74.25
Mainframe Operations System Programmer $87.36
Microsoft SharePoint Server Administrator $123.75
Middleware/Service Oriented Architect $99.00
Mobile Applications Developer $110.00
MS SQL Developer $102.85
Network Administrator $63.25
Network Engineer $88.00
Network LAN/WAN/SAN Engineer $82.50
Network Security Architect $112.75
Operations Support Analyst $52.25
Oracle DBA/PL-SQL Developer $96.25
Oracle Developer $96.25
Oracle Midrange Infrastructure DBA $98.25
Oracle Suite Administrator $93.50
PC Support Technician $41.25
PC/LAN Support Analyst (Hardware and/ or Software) $60.50
PeopleSoft Integrator/Support Analyst $114.95
QA Analyst/Engineer $74.25
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Quality Assurance Analyst $79.75
Real-Time Embedded Software Specialist $85.25
Ruby Developer $148.50
Server Operations Programmer $68.75
Software Developer $71.50
Sr. Project Manager $107.25
System Analyst & Administrator $88.00
Technical Writer $74.25
Telecom Technician/Analyst $63.25
Transportation Services IT Support $79.75
Web Developer $91.95
Windows/VMWare Administrator $93.50
Wireless Support Specialist $90.75
*Experienced professionals with a minimum of 7 years of experience.
1 http://labor.ny.gov/stats/pressreleases/pruistat.shtm
2 http://techcrunch.com/2015/02/06/new-york-citys-tech-boom-continues/
3 http://www.nyctecheconomy.com/
4 http://www.businessinsider.com/bill-de-blasio-on-new-york-tech-industry-2015-5
5 http://www.forbes.com/sites/susanadams/2014/09/05/more-than-a-third-of-u-s-workers-are-freelancers-now-but-is-that-good-for-them/
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ABOUT DONNELLY & MOORE
At Donnelly & Moore we maximize the potential of human capital and drive
business growth by connecting experienced, highly credentialed IT professionals
with demanding firms across a wide range of industries. Since 1997 our strategic
workforce solutions have helped Fortune 100 companies execute critical
projects and strengthen existing teams. With unparalleled access to talented
IT professionals and a customized, process-based approach to placing highly
qualified individuals on each project our clients undertake, we generate
results that speak for themselves. Our talent pool consists of the country’s top
information technology professionals.
We attract, assess, develop and place coding experts, IT architecture gurus, Web
developers and hardware specialists with clients in finance, utility services,
entertainment, infrastructure, government and other sectors. Our clients
rely on us to enhance their competitiveness by filling key roles with talented
professionals who uphold their culture and internalize their objectives. Our
unmatched capability to attract and retain professionals with critical expertise
enhances workforce productivity, reduces waste and guarantees the quality of
completed work.
Donnelly & Moore
14 Wall Street, 20th Floor
New York, NY 10005
Looking for IT Contractors?
Phone: (212) 488-1171
Email: [email protected]