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The world of independent contracting (IC) is fraught with unmanageable risks, and although COVID-19 has undoubtedly changed the way that we work, it is also just one of many blows to the economy that can happen at any time. In fact, for those who work in Information Technology and lived through the Global Financial Crisis (GFC), the only point of difference seems to be that travel is now impossible.
Rather than financial contagion via the banks, Governments around the world are managing person to person contagion. This has created a global lockdown that has seen many projects reassessed, and led to either mothballing, or being put into hibernation. In turn, there are now many in our IC community who are in financial distress, and what must feel like career freefall.
After the GFC, it wasn't uncommon to see ICs out of work for up to two years (depending on their sector) after recovery started and it brought to light that many ICs can weather 6 months of no work, but not many were in the position to field the longer term famine phase.
The key difference this time around is that where private sector investment has shrunk in response to the uncertainty in the economy, Governments seem to be willing to step up to the plate and take up the slack. Hopefully this translates into some of the much talked about infrastructure projects being pushed through at all levels of Government, as well as their current efforts of keeping the SME's afloat.
The only thing that we know for sure is that no one knows how long it will take before recovery starts. For those ICs who have not been lucky enough to be involved in a large and secure project, start reaching out to your networks. Even if there is nothing around right now, when someone hears of work becoming available, you want to have been the last contractor that they spoke to.
Erin Wright is the Finance and Compliance Manager at DAS Consulting Australia Pty Ltd.
We provide ERP services to Defence, Security, Private and Public Enterprises. We know SAP DFPS, SAP Aerospace and Defence, SAP PLM, SAP EAM.
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DAS Consulting Australia Pty Ltd
ABN: 90 1514 061 47
+61 2 6198 3269