UK tech market: IT startups favour short-term contracts through platforms for greater agility

In a fast-moving tech world, UK startups are rewriting the rules. To stay competitive, they are embracing short-term, high-value, flexible collaborations through specialist platforms. A strategy that combines agility, performance, and cost control.

An uncertain economic context pushing for flexibility

Since Brexit, the UK job market has undergone significant disruption. Coupled with ongoing inflation, geopolitical tensions and sluggish growth, startups particularly in the tech sector are being forced to rethink their operating models.

IT startups, which often need to launch products quickly, test solutions or respond to urgent client needs, can no longer afford long-term hires without clear visibility. As a result, many are now turning to short-term contracts, freelancers, and project-based services.

This shift is especially visible in key tech hubs such as London, Manchester and Edinburgh. According to a recent study by TechNation, around 62% of UK IT startups hired freelancers or contractors in 2024, marking a 23% increase from 2022.

Specialist platforms on the rise

This paradigm shift is enabled by the rise of professional matchmaking platforms, which allow companies to quickly find the right tech talent for specific projects.

Platforms such as Toptal, Upwork, Malt, and UK-based Worksome offer:

• targeted searches for IT profiles (developers, DevOps, project managers, data scientists)
• fast assessment of skills through portfolios or technical tests
• easy contracting and admin management (invoicing, legal compliance)
• a streamlined experience for both clients and independent workers

Some startups go a step further, integrating these platforms into their HR strategy as project accelerators rather than just one-off solutions.

Clear benefits for young tech companies

Choosing short-term collaborations offers multiple tangible advantages:

• Maximum agility: startups can scale resources to match each project phase without long-term commitment
• Lower fixed costs: no overheads related to permanent contracts (pensions, paid leave, office space, etc.)
• Access to top-tier specialists: short missions bring in highly skilled experts, boosting project speed and quality
• Reduced HR risks: avoiding long probation periods and hiring mistakes preserves internal structure

This aligns with the lean startup mindset: move fast, test, adjust, and keep only what works.

A new work culture is taking root

Beyond economic logic, a cultural shift in work dynamics is underway. Tech professionals from Gen Z and millennial cohorts are increasingly seeking flexibility, mission variety and purpose. Many are actively choosing freelancing or consulting over traditional employment.

Platforms fuel this shift, offering the security, visibility, and flow of projects that independent workers need.

For startups, it’s also a gateway to global talent pools, allowing them to hire top-tier experts remotely from Europe to Africa to Asia based on specific project needs.

A legal framework still catching up

Despite the growing use of freelance and short-term contracts, regulations are struggling to keep pace. The UK introduced IR35, a framework designed to prevent disguised employment. It requires businesses to prove that their contractors are truly independent and should not be reclassified as employees.

Some startups remain cautious, especially when assignments are long or deeply integrated into the company. That’s where platforms play a key role, offering legal safeguards and ensuring compliance.

Field feedback: a model that delivers

In Bristol, cybersecurity startup Sentinel Core hired four freelance developers to fully rebuild its cloud infrastructure in just six months. “We could never have moved that fast with an in-house team,” says CEO James Turner. “The platforms helped us identify highly specialised profiles in days and focus only on results.”

The same holds true in Manchester, where a growing fintech company is raising funds. Their CTO explains: “The scalability of our model depends on our ability to bring in top data science experts without full-time contracts. Short-term deals give us a priceless strategic edge.”

Looking ahead to 2025

This trend shows no signs of slowing down. In fact, forecasts for 2025 predict double-digit growth in short-term IT contracting across the UK, among both startups and larger companies.

Platforms are continuing to innovate, incorporating:

• AI-based profile matching
• performance prediction tools
• built-in project management systems

For startups, the challenge will be to build a hybrid talent strategy that combines a stable core team with on-demand external resources. The goal: retain control without compromising speed.

The future of tech work is mission-driven

Short-term contracting through platforms has become a strategic asset for UK IT startups. This flexible model helps them adapt to market uncertainty, accelerate development and tap into rare skill sets. While regulatory hurdles remain, the momentum is undeniable: freelancing is no longer a fallback it’s a key to performance and agility in the tech space.