It’s one of the oldest debates in tech careers: Should I go perm or try contracting? Currently, the question feels more relevant than ever. Australia’s tech sector is changing fast. Despite broader economic bumps, IT recruitment remains steady, with consistent demand for key skills. Plus, career paths are more fluid than they’ve ever been. Unfortunately, these patterns also make it harder to weigh up the merits of contract and permanent employment.
But with so much noise out there (and a few outdated assumptions still doing the rounds), it’s easy to get stuck thinking there’s a clear winner in the contract vs perm debate. Spoiler: there isn’t.
In this article, we’re calling out five of the most common myths we hear from candidates and employers. And we’ll offer a more realistic take on what it actually looks like to work contract or perm in today’s market.
Myth 1: IT contractor jobs are riskier than permanent work
Reality check: Contracting isn’t the wild west anymore.
While the idea of “job security” has long been associated with permanent roles, the job market is shifting fast. Many contract roles now span 6–12 months with strong extension potential, especially in sectors like cloud infrastructure, cybersecurity, and large-scale digital transformation. And because contractors are often hired for urgent work, demand tends to stay consistent even when permanent hiring slows down.
For professionals with in-demand skills, the time between IT contractor jobs is often minimal. Many contractors line up their next gig before the current one ends. Risk still exists, of course, but it’s a different kind of risk. It’s more about market timing than company restructuring or headcount freezes.
Myth 2: Permanent roles always offer better career progression
Reality check: Job titles aren’t the only way to level up.
Yes, permanent jobs in IT can come with formal promotion pathways, leadership opportunities, and long-term professional development plans. But not all employers offer these opportunities to everyone. When growth slows down, you could be waiting around for your next bump up the career ladder in vain.
Meanwhile, contractors can get exposure to a wider range of technologies, industries, and challenges at a much faster pace. Jumping into different environments helps sharpen problem-solving skills and build a more versatile CV.
We’ve seen mid-career developers grow into solution architects through varied contract roles, and business analysts land product owner gigs thanks to exposure across multiple agile teams. In short, contracting can accelerate your growth more than waiting for a promotion cycle.
Myth 3: Contractors earn more, full stop
Reality check: Yes, contractors often earn higher day rates, but that’s only part of the picture.
If you’re contracting, you’re covering your own super, sick leave, holidays, and professional development. You’ll also need to factor in time between assignments, the admin involved in managing your finances and potentially engaging with an accountant or payroll company. Of course, if you partner with a reputable IT recruitment specialist like us, many of those headaches are taken care of, as we can handle timesheets and payments while you focus on doing what you do best.
That said, for highly specialised professionals, particularly in areas like data engineering, security, or DevOps, the earning potential as a contractor is substantial. However, it’s not just about who earns more. It’s about how you want to earn: a predictable monthly salary or the project-based peaks (and occasional troughs) that come with contracting. Deciding on what is appropriate for you will depend on your personal circumstances.
Myth 4: You have to pick one path and stick to it
Reality check: Flexibility goes both ways.
In 2025, it’s not uncommon to switch between contract and permanent employment throughout your career (or even within the same year). Maybe you go perm to access a new industry, then take on a contract to upskill or earn extra for a big life goal. Maybe a 12-month contract turns into a permanent offer. These hybrid career journeys are more common than ever, and most hiring managers understand (and even value) that kind of flexibility.
Your path doesn’t have to be linear. Choose what fits now, not forever.
Myth 5: Employers favour permanent hires
Reality check: Not when delivery speed is the priority.
With ongoing skill shortages and increased project demand, especially in government, financial services, and enterprise tech, many organisations rely heavily on contract talent to keep things moving. Contractors are often brought in for the high-impact, time-sensitive projects, as their ability to hit the ground running is more valuable than a five-year commitment.
Plus, hiring managers often appreciate the fresh blood and skills that experienced contractors bring. Permanent (especially junior) team members can learn a great deal from a contractor who really knows their stuff.
Key Takeaways
Is the contract vs perm debate settled once and for all? The answer is that the right path depends on your goals, your appetite for flexibility (or stability), and where you’re at in your career journey.
Find contract and permanent employment with Exclaim IT
Still weighing up your options? If you’re eyeing a new contract assignment or exploring your options for permanent jobs, Exclaim IT can help you make a move that fits. We’ll match your goals with roles that make sense. No myths, just honest advice. Get in touch with our friendly IT recruitment specialists today to get started.
