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Insights for Microsoft contractors

Whatever the Microsoft Cloud role, use our guide to benchmark your salary or contact rate, or to uncover what you should be paying employees in your team.

Contractor workload

39 hours

The freelancers that took part in our survey work an average of 39 hours a week—with 5% telling us they work over 60 hours a week

7 months

Average total contract length: 7 months

2 years and 6 months

Longest contract length: 2 years and 6 months

22%

Percentage of freelancers that have worked on projects that have lasted 12 months or more: 22%

3 clients

Average number of current clients: 3

34%

Percentage of freelancers only working for one client: 34%

How to increase your contract rate

It’s no secret that contracting has a high earning potential—it’s what attracts many Microsoft Cloud professionals to freelance work in the first place. But how much should you be charging for your skills? Underestimating your worth can be a costly mistake, especially with current economic turbulence and a spiraling cost of living, meaning it (quite literally) pays to get your price right.

So, what can you do to maximize your market value and boost your contract rates?

Strengthen soft skills

A tangible soft skill set is a crucial part of a successful tech freelancer’s profile, so be sure to invest in your professional growth by seeking feedback, practicing self-reflection, and partaking in soft skill training and workshops. If you can demonstrate desirable soft skills like organization, teamwork, communication and problem solving, ensure your contract rate reflects the added value you bring to a team.

Build your professional brand

When freelancing, you are the brand—and the better you can sell yourself, the higher the rates customers will pay for your services. Build your brand as a professional around your experience and expertise, and be confident in displaying it across a diverse portfolio, LinkedIn presence, and testimonials that shout loudly about just how great you are. Networking plays a big part here too, so don’t shy away from opportunities like events, user groups, and community days to meet new contacts.

Stay aware of scope creep

From unrealistic client expectations to constantly changing briefs, if you’re working beyond the hours and parameters agreed in your contract, then it’s coming at the expense of your overall rate. Ensure you’re keeping track of your hours and contributions to each project to ensure they’re not going unrewarded—and be prepared to have a conversation with your customer when the scope becomes unreasonable. Look to practice conflict management skills to ensure you don’t end up simply avoiding these ‘awkward’ conversations, which ends up hitting your bottom line if it goes unaddressed.

Attraction and retention

What makes a contractor accept a contract offer?

82%

Earning potential

81%

Ability to work remotely

53%

Technologies used in the project

51%

Flexible hours

Duration of project 41%
Number of hours or days per week 34%
Management philosophy 32%
The industry the project/organization is in 28%
Complexity of project 27%
Quality standards 27%
Size of project 20%
Other 1%
Duration of project 41%
Number of hours or days per week 34%
Management philosophy 32%
The industry the project/organization is in 28%
Complexity of project 27%
Quality standards 27%
Size of project 20%
Other 1%

What are the key attributes you need to be a contractor?

We asked contractors which qualities are most important if a professional is to succeed as a self-employed Microsoft professional, and the top responses were:
Soft skills (e.g., communication, teamwork, problem-solving, and conflict management)

56%
Adaptability

49%
Technical expertise

49%
Drive and enthusiasm

40%
Microsoft-specific experience

35%
Staying up to date with Microsoft products

31%
General experience in the technology industry

24%
Leadership

22%
Selling your abilities to a client

21%
Change-management experience

20%

What challenges do you face working as a contractor?

Finding new customers 51%
Networking 28%
Work-life balance 26%
Unrealistic expectations of clients 23%
What to do in periods of no work 23%
Keeping up to date with admin 22%
There is lots of competition 19%
Clients changing the scope of a project 19%
Time management 16%
Lack of communication from clients 16%
Procrastination/motivation 14%
Knowing when to refuse a project because it's unsuitable 14%
Late customer payments/invoicing 13%
Knowing when to refuse a project because I already have enough work 8%
None 7%
Finding new customers 51%
Networking 28%
Work-life balance 26%
Unrealistic expectations of clients 23%
What to do in periods of no work 23%
Keeping up to date with admin 22%
There is lots of competition 19%
Clients changing the scope of a project 19%
Time management 16%
Lack of communication from clients 16%
Procrastination/
motivation
14%
Knowing when to refuse a project because it's unsuitable 14%
Late customer payments/invoicing 13%
Knowing when to refuse a project because I already have enough work 8%
None 7%

For Microsoft freelancers, finding new clients remains the top challenge. Interestingly, networking has moved into second place, while work-life balance, previously the second biggest concern, has shifted to third. This change reflects evolving dynamics in the freelance landscape.

Consistently the primary concern reported by consultants, the difficulty of finding new clients, combined with the challenges of building a strong network, underscores the importance of effective client relationships, visibility, and strategic marketing for sustained success.

Reasons for leaving a contract before it was completed

We surveyed freelancers about instances in which they left a project before completion and asked them to share their reasons, which included:

21%

Non-payment or delayed payments

17%

Unacceptable working conditions

13%

Changes in project scope or requirements

13%

Lack of communication or support from the client
Contract breaches by the client 11%
Unfulfilled promises by the client 11%
Ethical concerns or disagreements 10%
Disinterest in the project 10%
Personal or family emergencies 9%
Dispute over contract terms 7%
Conflicts with the client or team members 7%
I’ve never left a project before it was completed 42%
Other 2%
Contract breaches by the client 11%
Unfulfilled promises by the client 11%
Ethical concerns or disagreements 10%
Disinterest in the project 10%
Personal or family emergencies 9%
Dispute over contract terms 7%
Conflicts with the client or team members 7%
I’ve never left a project before it was completed 42%
Other 2%

What do freelancers think about a contract that includes a minimum or guaranteed number of hours?

Provides financial stability

62%
Encourages commitment from both parties

43%
Builds long-term client relationships

41%
Might not align with actual workload needs

30%
Reduces uncertainty in scheduling

26%
May lead to unnecessary work just to meet hours

18%
Limits flexibility in work hours

14%
Other

5%

What advice would contractors give to those considering a freelance career?

We asked the contractors that took part in our survey what advice they’d give to those considering starting their freelance journey—responses include:
“It is important to keep opening your networking channels and engaging with various groups. It will prove essential for getting work.”

Data Engineer, South Africa

Conclusion

The flexibility, autonomy, and variety that contracting offers can make it a rewarding and lucrative career path for many Microsoft professionals.

If you’re a permanent employee considering a move into freelancing, it’s wise to build a broad skill set and invest time in developing a strong professional network beforehand.

For those already contracting, the key is to set realistic workloads, allocate time for administrative tasks, and stay proactive about payment follow-ups. Remember to leverage your communication skills and adaptability to keep both your projects and professional relationships on track.

Our key findings report contains highlights from this year’s Careers and Hiring Guide, plus our salary tables to allow you to compare your compensation or benchmark your teams’ salaries or rates no matter their role in the Microsoft ecosystem.