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4 simple reasons why contractors grow every tech business

Traditionally, there has been a perception that hiring contractors is “last resort” compared to hiring permanent members of staff. At the moment however it’s becoming an increasingly popular option.

Here’s why.



In Software Development in the UK, the average notice period across most levels is now 3 months. Now factor in the time to hire: The average time to hire a tech specialist in the UK is 55 days. This means businesses are looking at an average of over 5 months* from job creation to the new employee starting. 

*3 months (90 days) + 55 days = 145 days = 5.17 months

The average time to hire a contract resource from job creation to placement is remarkably shorter. Our Capacity as Service solution will have a contractors up and running in 24 hours.

Hiring a contractor gives you up to 4.5 months of activity usually lost to pre-onboarding admin. A number of our clients find that hiring contractors to plug the resource hole while they find the perfect permanent candidate is the best solution (and most cost effective).


Tech salaries are skyrocketing across the board - Software Development salaries in particular are increasing scarily quick, and they don’t seem like slowing down anytime soon. Add on the secret, forgotten costs of new hires:

•    National Insurance contributions
•    holiday pay
•    sick pay
•    pension
•    benefits
•    bonuses
•    training & development 
•    equipment

You get the idea. The chances are that it’s going to be cheaper to onboard a contractor nowadays.

Don’t forget permanent recruitment fees too. With the average tenure of Software Engineers being 2 years, you’ll find yourself paying fees regularly if you have multiple in your team.

The price of a contract worker versus the cost of a permanent employee

Check out our infographic showing the difference in cost between a contractor and a permanent employee.


Business needs can change quickly. New investment secured, shifts in the market: sometimes you need to be able to flex how many people you have in your team both up and down. 

It can be extremely difficult and time-consuming to do if you’re hiring/have hired permanent members of staff. Contract resources are up & running in no time at all. And once they’ve finished you can move them onto other projects or simply offload them if they’re not needed anymore. 

While high growth is obviously the objective for any start-up/scale-up, the stress it can put on resources if you’re not properly prepared is mega. Forecasting growth and putting measures in place to accommodate it is an absolute necessity.

Capacity as a Service identifies aspects of growth plans that may need more support as you scale, forecasting when you’ll need it and the expertise you’ll require. It lets tech businesses enjoy and thrive in growth, rather than buckling under it.


Hiring a Software Engineer takes, on average, at least 30 interviews. An hour per interview minimum, takes 30 hours out of someone’s time to do this. It’s a considerable chunk of someone’s day-to-day job devoted to hiring a single employee. Time = money as they say and start-ups in particular do not have this kind of time to throw at hiring. 

Contractors speed up this process tenfold. Capacity as a Service gives access to a virtual bench of pre-screen expert contractors that can be deployed into your team within 24 hours. Just choose who fits the project requirements best and bam, they’re getting started.

Some of our clients like to operate trial starts/working interviews. The contractor starts working on the project with work delivered acting as their interview. More often than not, our clients see an instant upshot in productivity from a combination of time saved interviewing and work produced.

No more weeks wasted and money squandered battling with CV pusher recruiters to get the perfect candidate. Capacity as a Service is a powerful tool for increasing velocity in project and product teams. It’s scalable. It’s affordable. And it’s proven to grow tech businesses.

Watch Amsource Founder & CEO discuss how Capacity as a Service grows tech start-ups/scale-ups.

David Robinson,
Director, Amsource


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