>about 2 years ago I decided not to do any more contract work because I thought I needed job security and a steady pay. Now, job security is WAY back in the past and contracts are scarce.
>Is a no winning situation.

During these days, it's also a question of luck. It could work well for some but not for the rest. What could add to security during these days is the ability that some consultants may have by being involved in other areas/components/products/companies/etc. Going purely as consultant, where this would represent 100% revenues to the related individual, is, as you said, quite risky during these days. Most of the consultants are working on short term contrats such as one week to a month. For those who can sign 6 months to 12 months with renewal potential, then, they are in a better seat.

This has also changed since the beginning of the century because of that supposed millenium bug. :) Companies were so afraid to start new development in the years preceeding the millenium that they jammed or cancelled any other new potential projets. Then, they found themselves in the situation that they realized that without new development that the corporate infrastructure was still doing well with existing applications. So, they thought they could remain in that position for a few additional years. So, less projects, less consultants, etc.

During those years, permanent staff continued to work but mostly on supporting existing applications and spending most of their time trying new technologies (right now .NET). So, this is also one reason why less resources are going to conferences during these years as they have so much time to invest on research now at work that it's not a must as it used to be to attend conferences where they could attend intensive crash courses.

So, this has resulted in a lot of consultants, I would say up to 40%, now as permanent employees for corporations. Even big consultant firms in Montreal have changed there way of doing things are their big clients have shutted down the door to all potential projects to hire external resources.