IT CONTRACTING EXPERT KNOWLEDGE FOR YOUR IT PROJECTS. Daily Rates of IT Contractors in the Czech Republic for 2017/2018. hays.

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1 IT CONTRACTING EXPERT KNOWLEDGE FOR YOUR IT PROJECTS Daily Rates of IT Contractors in the Czech Republic for 2017/2018 hays.cz/itcontracting

2 CONTENTS Introduction 1 Information technology market development 2 IT Contracting: what benefits does it offer to organisations? 4 Why work with Hays? 6 Rates - overview 7 Why become a contractor? 8 How to win a project 9

3 INTRODUCTION Kristýna Pechová, Manager IT Contracting, Hays Information Technology s.r.o. The IT sector has been on the rise in recent years. Employee opportunities are rising as well as demand for external workers - IT contractors. The IT sector has been experiencing a major recovery for several years now and we forecast that the next year will again be a very fruitful period for the IT sector. Recent modern technologies have become the standard in the Czech market. Cloud Services and Big Data are widely used technologies and 3D printing is a tool that has opened up new horizons for both large organisations and start-up companies. The Internet of Things (IoT) is slowly becoming part of our work environment and homes and will increasingly become part of our everyday life in the future. Inevitably, however, the arrival of new technologies will result in a shortage of qualified professionals for companies. It s important that companies recognise that if they choose to use an external specialist they will get an invaluable and quick technological advantage over their competitors. The market is becoming and will become a very much candidate-led market as contractors have the choice of projects and salaries. This guide therefore offers an in-depth look at current salary levels across the IT sector in Czech Republic. It also offers a view on what organisations can do to attract the best talent and how the IT sector will evolve in years to come. I hope that you find our guide useful and that it will encourage you to face the future challenges that await contractors and employers. I wish you a pleasant reading. Kristýna Pechová Daily Rates of IT Contractors in the Czech Republic for 2017/2018 1

4 INFORMATION TECHNOLOGY MARKET DEVELOPMENT During the past few months, we have seen an increase in the number of opportunities for contractors involved in the information technology segment. Companies are expanding and the number of projects are growing. Technicians are attracted by new technologies, and trends such as IoT, Big Data and Artificial Intelligence are becoming a reality. The IT sector is no longer a male domain as more and more women are entering the field. What s more, companies are focusing on the training and education of women which inevitably increase their chances to succeed. There is a current and high demand for skilled IT staff as the segment is expanding and we expect the same trend to continue in years to come. Internet of Things (IoT) The huge topic frequently discussed during the past year is IoT. The number of worldwide connected devices utilising the IoT network this year is expected to increase to 8.1 billion, which is 31% more than the previous year. This figure will continue to increase in the coming years, and it is estimated that around 20 billion devices will be connected by Based on project-based statistics where Hays IT Contracting is involved, Western Europe, North America, and China are the leaders in this area. The growing number of connected smart devices brings numerous new business opportunities, but also threats and challenges for companies, specifically with cloud integration, IoT ecosystems and security. 2 Daily Rates of IT Contractors 2017/2018

5 Data Science In 1997, a famous chess match between a computer called Deep Blue and a human took place. During the match, the computer managed to defeat the world chess champion of that time. This was unprecedented for a computer. Now with the increasing number of IoT devices, we expect more integration between IoT and data science in 2017 and we expect data to be collected from smart devices in real time. For example, you may not need keys to unlock the door to get to your home because your door will detect your presence and will unlock the door automatically. Once you leave the house, all unnecessary electrical appliances will be disconnected from the power, saving you money and avoiding accidents. It may sound like the distant future, but we are not that far away. We are already actively working on projects that deal with smart cities and buildings. The European Union has been experiencing a large amount of data leaks primarily caused by hacking derived from the rising need for data collection. That is why the EU has decided to implement a new regulation on personal data protection. The purpose of this regulation is to establish rules that define how to handle the personal data of all business entities active in the EU. Therefore, companies will have to implement this legislation into their business during the course of the next year. Artificial Intelligence (AI) Another great topic of today is artificial intelligence. Based on reports and estimates created in the US or Great Britain (Oxford), AI may replace half of all jobs within 30 years. In China, artificial intelligence has already replaced thousands of employees. As for the Czech market, we have also seen the arrival of robots, for example in the field of logistics. With the increasing number of IoT devices, we expect integration between IoT and data science to increase and we are likely to see real time data collected from smart devices. Security Currently, the IT security segment faces big challenges. In the past year, we saw that smart devices can be purchased almost anywhere and often at a low cost. This has helped to bring devices to many households and public spaces. Until the internet collapsed in the US in October 2016 due to a massive attack on smart devices connected to the Internet, hardly any attention was given to security on the internet. Now the focus is on how companies can ensure data security and implement security measures in all devices to avoid repeated attacks. Just as the entire IT world is developing, hacker attacks are also improving and are more sophisticated and strategic. Their aim is to not only gain sensitive data about individuals, but to also gain data belonging to organisations as this provides hackers power to influence their market position and undermine customer confidence. It will be crucial for companies to engage their own employees and minimise the consequences of irresponsible use of technical equipment at work. Daily Rates of IT Contractors 2017/2018 3

6 IT CONTRACTING WHAT BENEFITS DOES IT OFFER TO ORGANISATIONS? Hiring IT contractors is an ideal solution whenever you face a lack of internal staff or seek a specific skill. Tony Le, Account Manager, IT Contracting IT Contracting provides a service to organisations not a specific product or a part of product. IT contractors offer their experience and capabilities based on a client s specific request and offers assistance with issues that are very important for the company at a given moment. Companies may acquire certain skills, knowledge and technologies during specific times periods only and may decide not to use them again if there is no longer a need. In the global economy, the gaps between skills are increasing and talented and capable contractors are not restricted but free to share their expertise with several companies. Under this set up, all parties may benefit and achieve their goals. The cooperation between Hays, the client, and an external specialist Contract mirroring Project duration Description of services and requirements Non-disclosure agreement EXTERNAL IT SPECIALIST CLIENT Contract on provision of services Contract on provision of services 4 Daily Rates of IT Contractors 2017/2018

7 Why and when to hire an IT Contractor Pressured by time A contractor can start working on a project immediately as they usually will not need to serve resignation periods in previous employment so if you are under pressure to complete a project, a contractor may be the best option for you. Lack of specific knowledge and skills in your workforce An IT contractor brings the necessary knowledge as they have undoubtedly worked on many different types of projects in the past. You need to hire only for a specific time period With a contractor, you get the flexibility you need for a project. They are aware that the project will end and they are still ready to help you if the project is extended. Contractors can be used on an interim basis You may use an external technician whilst searching for a permanent employee. Low budget for internal employees When using an IT contractor, you do not need to increase the number of permanent employees, and the cost for the external technician is usually included in the project cost. Flexibility is key With the increasing demand for IT technicians, companies are often forced to search for IT technicians outside of their regions. However, IT technicians are usually not very motivated to relocate. A compromise and modern working methods preferred by contractors include partial commuting and working from a home office, or possibly a fully remote job. However, before the contractor can do that, they must be familiar with the project and the team and properly set up communication with their direct supervisor. Technologies that are currently in the highest demand on the market are JAVA,.NET, PHP, JavaScript with IONIC or Angular2, Swift /Objective-C. How to attract a contractor to work for your company? IT specialists consider many factors before taking on particular projects. These is the criteria most often used in the decision-making process: Home office Source of potential employees You will possibly gain an additional source of potential candidates, which may become permanent staff over time. Based on our statistical data, the majority of IT contractors in the Czech Republic are located in Prague and Brno. Their availability, as well as their rates, differ from region to region, as these costs usually include moving or commuting expenses. Flexibility Technology Attractive pay Project phase (ideally the beginning of the project) Daily Rates of IT Contractors 2017/2018 5

8 WHY WORK WITH HAYS? Hays background as a global corporate organisation offers you security with legal issues and contracts, personal data protection and on-time salary or bonus payments to contractors. We always act professionally and to the full satisfaction of companies and external workers. International database of applicants Thanks to the shared international database of IT specialists, we have access to the largest number of candidates when compared with our competitors and, therefore, we may target experts from other countries as well. Fast response times Thanks to advanced searching tools, we are able to identify a suitable specialist for your organisation within 48 hours. Highly qualified team We employ a team of qualified experts, have detailed knowledge of the local market, and thanks to our global presence we share our experience at international level. Active promotion of clients We are aware of the importance of presenting your company as an attractive employer. Clients can rely on a detailed examination of the capabilities of our candidates, and our candidates are confident that they will get to work for high quality and promising organisations. We cooperate with the notable clients and strengthen their brand names through active promotions directed towards applicants. Your opinion matters We are continuously improving our services. We identify and evaluate feedback on our cooperation with you and with external specialists, so you have a direct impact on the level of provided services. 6 Daily Rates of IT Contractors 2017/2018

9 RATES OVERVIEW Java Junior Developer 4,000 6,000 Standard Developer 6,000 8,000 Senior Developer 8,000 9,500 Team Leader 8,500 10,000 Database DB Developer 5,000 7,000 Senior DB Developer 6,000 8,000 DB Administrator 5,000 7,000 Senior DB Administrator 6,000 8,000.Net/C# Junior Developer 4,000 6,000 Standard Developer 5,000 7,000 Senior Developer 6,500 8,500 Team Leader 7,500 9,500 Testing Junior Tester 2,000 4,000 Standard Tester 3,500 5,500 Senior Tester 4,500 6,500 Test Analyst 5,000 7,000 Test Manager/Architect 6,000 8,000 Front-end (HTML, CSS, JS) Junior Developer 4,000 6,500 Stand ard Developer 6,000 8,500 Senior Developer 7,000 9,500 Architecture Software Architect 8,500 11,000 System Architect 8,500 11,000 Team Leader 7,500 10,000 PHP Junior Developer 3,500 5,500 Embedded Embedded Developer 3,500 5,500 QA Software Engineer 5,000 7,000 Standard Developer 4,500 7,000 Senior Developer 5,500 7,500 Team Leader 6,000 8,000 Mobile Junior Developer 4,000 6,000 Standard Developer 5,000 7,000 Senior Developer 6,500 8,500 Team Leader 7,500 9,000 Analyst Business Analyst 6,000 9,000 IT Analyst 6,000 9,000 Project Management Project Manager 7,000 10,000 Program Manager 8,000 10,500 C/C++ Junior Developer 4,000 6,000 Standard Developer 5,000 7,000 Senior Developer 6,500 8,500 Other Scrum Master 6,000 9,000 Network Engineer 5,000 8,000 Team Leader 7,500 9,000 Daily Rates of IT Contractors 2017/2018 7

10 WHY BECOME A CONTRACTOR? If the candidate possesses the required knowledge, companies are willing to not only negotiate the remuneration package, but also other benefits, such as off-site work. Kateřina Vejmelková, Senior TA Consultant, IT Contracting What is IT contracting and what are the benefits? IT contracting or body shopping is a service that focuses on providing IT services through external experts and consultants. Contractors work on timelimited IT projects and they deliver services and not a specific product. Their capabilities and their work help clients to develop their business activities and companies will gain their work when they need it. When the need is over, the financial burden associated with the use of a contractor is over as well. Companies offering IT contracting provide independent professionals who are hard to find in the market. Why become a contractor? More and more IT specialists today consider a professional contractor career. Contracting offers a number of benefits that promote their worklife and provide diverse experience. Freelancing allows: Candidates with the required knowledge are able to negotiate better deals The candidate and their willingness to apply for a project significantly influences the recruitment process. Today s contractors are well aware of the situation in the IT market and know their capabilities and values. They do not passively await a client s opinion, but get actively involved in the negotiation as equal partners. If the candidate possesses the required knowledge, HR officers are willing to not only negotiate the remuneration package, but also other benefits, such as off-site work. On the other hand, contractors have to deal with the pressure exerted by customers who demand excellent services in exchange for high financial rewards and other benefits. Only a person who has the skills and expertise the companies are looking for can become a successful contractor. The ability to choose when and where to work The ability to work on projects that are professionally interesting Greater room to negotiate financial remuneration, as well as other conditions in the contract Larger scope of flexibility The ability to work from home or remotely 8 Daily Rates of IT Contractors 2017/2018

11 HOW TO WIN A PROJECT? Social network In terms of long-term prospects, it is a good idea for a contractor to be active on professional social media networks, especially LinkedIn. The contractor can connect with staffing agencies or HR specialists. It is important that the contractor has an up-to-date LinkedIn profile, with a brief introduction of their knowledge of specific technologies or the duration of a current project, if applicable. Professional and broad view It is highly advisable that candidates keep up with developments and have insight about the situation in their industry whether its to gain relevant qualifications or to be aware of future trends. If the candidate knows this information, they have a clear advantage over other job seekers. Make a good first impression Companies view external specialists as IT experts and therefore it is important for the candidate not to underestimate the power of a first impression. Make sure to be on time and wear formal clothing. Applicants will make a good first impression if they are knowledgeable about the company, know what the company does, and what the job description of the position they are applying for is. It is recommended to ask questions about the company or team during or at the end of the interview, whether technical or general. Have the ability to sell your skills The added value rests in an applicant s ability to sell themselves. It is a good idea to review your work history to avoid hesitation when answering questions like your length of experience, involvement in similar projects, and so on. The applicant should also be able to evaluate to what extent they meet the company s requirements. If the applicant is not skilled in a certain technology, it is better to mention it at the beginning and, if possible, add any additional knowledge of a similar technology, possibly operating on a different base, etc. Work flexibly As far as the availability of the applicant is concerned, most companies usually require a contractor to start as soon as possible, preferably immediately. However, if the contractor can join the company within a month, they still have a competitive advantage over applicants who work full-time jobs and have a two-month notice period. Obtain references Most organisations will pay attention to good references, ideally from projects based on similar technologies, and from companies of similar size, ideally completed over the last few years. In order to speed up the process, it is good to have references ready. Daily Rates of IT Contractors 2017/2018 9

12 CONTACT For more information on how we can help with your career or your recruitment needs, visit our Prague office or contact us: Hays Information Technology s.r.o. Olivova 4/ Prague 1 T: E: prague@hays.cz hays.cz/itcontracting Copyright Hays plc HAYS, the Corporate and Sector H devices, Recruiting experts worldwide, the HAYS Recruiting experts worldwide logo and Powering the world of work are trademarks of Hays plc. The Corporate and Sector H devices are original designs protected by registration in many countries. All rights are reserved. CZ-22671