How to choose the right umbrella company?

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When you are an IT expert in an umbrella company, our umbrella company is your main business partner. It's the company that secures your contracts and your employee status, handles all the administrative and accounting management, supports you to optimize your net salary income, and protects you when issues arise thanks to dedicated assistance. It's not far from being the cornerstone of your success as an independent freelancer. That's why choosing it lightly is out of the question! Ending up with an umbrella company that doesn't understand IT issues is the risk of dealing with slow administrative processes, late payments, or overwhelmed contacts when negotiating your assignments and service offering...

At Weepo, every year we welcome dozens of developers, architects, and project managers disappointed by previous experiences. Their testimonials have helped us reflect on what criteria to scrutinize to select the right structure for the IT ecosystem.

Transparent and Justified Management Fees

The umbrella company business model is based on sharing your turnover. The company takes a percentage of your invoices to cover the administrative, accounting, legal, and commercial management of your activity. This rate is generally between 3% and 10%, with discounted rates depending on your invoiced turnover. This is your first criterion for comparing market offers. But be careful, don't just look at the headline rate—dig deeper into these two essential points.

The displayed management fee rate must be the real, guaranteed rate. In other words, with no extra deductions that reduce your net remuneration. All basic services should be included in this rate. Here are the most frequent extra fees to watch out for:

  • Entry or exit fees: sometimes presented as "administrative fees"
  • More or less mandatory extra options: invoicing software, collaboration tools, training, etc.
  • Additional deductions: for leave management, health or provident insurance
  • Undue re-invoicing: for work accident contributions or even for financial guarantee membership

To avoid bad surprises, demand a comprehensive and detailed pricing list, including the fees calculation method. Ideally, choose umbrella companies with the "zero hidden fees" (FEDEPS) label. This is a real guarantee of transparent pricing.

At Weepo, for example, transparency is a core value. Our fee grid is crystal clear, with no extra lines. This is a commitment so important to us that we obtained the Zero Hidden Fees Label from FEDEPS as soon as it launched in 2023.

Reactivity on a Daily Basis, in Prospecting and On Assignment

In an umbrella company, the challenge is to reduce gaps between assignments as much as possible, while negotiating good terms in your contracts. Your umbrella company’s sales and administrative support team play their part here.

An Experienced Team in the IT Ecosystem

In practice, business development is mostly your responsibility. But you must be able to count on a team committed to defending your interests, beyond just providing tools (CRM, proposal templates, standard contracts, etc.). When talking with the sales team, probe these three key points:

  • Knowledge of roles and technologies: Are they able to understand your technical stack? To challenge your skills? To highlight your expertise to a client company if necessary?
  • Mastery of the IT ecosystem: Do they know key accounts, ESNs, specialist recruitment firms? Do they have a substantial address book in the sector?
  • Understanding your objectives: Are they interested in your upskilling, training, or certification projects? Do they challenge your mission and career choices?

Processes Adapted to the Pace of IT Projects

Once on assignment, you need efficient administrative support. An IT project almost always evolves along the way: shifting scope, technical changes, budget revisions, etc. Your umbrella company must have agile processes to adapt to these changes:

  • Reduced turnaround time to establish contracts and amendments
  • Robust information system to manage billing changes
  • Dedicated contacts to coordinate all aspects of the project
  • Emergency procedures to resolve complex situations
  • Tools provided: consultant portal, electronic signatures, etc.

Don't hesitate to contact consultants currently working with the umbrella company. They are always the best placed to judge the true efficiency of this support on a daily basis.

Tools and Services Adapted to IT Experts’ Needs

Your core business is IT, not administrative management. You must therefore choose an umbrella company that makes your life easier with services 100% tailored to the real concerns of IT experts.

Contracts Suited to IT Projects

Each IT project has its specifics: one focuses on intellectual property, another on liability, confidentiality, penalties for delays, etc. When you talk to them, make sure your umbrella company is familiar with the market norms:

  • Clauses assigning copyright, in accordance with intellectual property laws
  • Definition of deliverables and acceptance criteria
  • Guarantees in case of going live
  • Non-disclosure agreements suitable for the project’s sensitivity
  • Limiting penalties for delays or non-performance

This last point is a recurring sticking point in IT. We've seen umbrella companies impose a penalty clause of 10% of the assignment amount per day late, without a cap. Totally disproportionate and dangerous for the consultant!

A Complete and Ergonomic Consultant Portal

For your day-to-day management, ideally your umbrella company should have, like Weepo, a complete and intuitive consultant portal that lets you manage your activity from A to Z:

  • Entry and validation of timesheets
  • Follow-up of each employment contract and billing
  • Management of leave and absences
  • Access to administrative documents (contracts, payslips, certificates, etc.)
  • Communications with the umbrella company’s teams

A True Ability to Manage International Assignments

It's tricky for an IT expert to avoid international projects at some point. But as soon as an assignment takes on a cross-border dimension, things get complicated: contract, billing, tax, social protection, etc. There’s nothing more frustrating than losing a project because your umbrella company can't communicate with a German or British client! internationally

Multilingual Support If Possible

The first necessity: being able to deal with contacts who master the languages and cultures of your target countries. Concretely, you need:

  • Contracts and documents drafted in English (or ideally in the country’s language)
  • Salespeople able to communicate with your international customers
  • Administrative support provided in the project’s language
  • HR experts who understand local specificities

Be sure to get confirmation of these language capabilities beforehand. The bare minimum is being able to hold business discussions in English.

Mastery of Regulations and Billing Rules

Beyond language, working internationally means juggling different legislations, procedures, and organizations. When speaking with your umbrella company, gauge how well it knows the best practices for invoicing IT services abroad:

  • Compliance with the European Directive on Electronic Services
  • Application of intra-community VAT or customs duties on service prices
  • Respect for the consumer laws of the country of service
  • Jurisdiction clauses in case of disputes

Strong IT References and an Active Community

Last key criterion: the credibility of your umbrella company in the IT ecosystem. Remember, by choosing it, you are entrusting your reputation and professional image. You need a clear idea of its references and solidity.

Study Authentic Feedback from IT Experts

To judge the seriousness and IT expertise of an umbrella company, nothing beats the feedback from consultants who work with it:

  • Look through consultant testimonials on the website and social channels. Are they positive, detailed, authentic?

  • Check the client references that are put forward: are they recognized in IT? Do they correspond to your targets?

  • If possible, look for reviews from people similar to you (developers, project managers, data scientists): they’ll be the most relevant for you.

  • Contact some consultants directly to get unfiltered feedback.

  • Attend an event organized by the company to form your own opinion.

Verify Financial Health and Track Record

Beyond image, the solidity of your umbrella company matters. Imagine if it went out of business overnight! To avoid this risk:

  • Check its available key figures: turnover, net result, equity... Are they growing? Do they reflect strong financial health?
  • Check its longevity: a company that's been in the market for several years is more stable.
  • Find out about the shareholders and governance: who are the decision-makers? What are the development plans? Is there a risk of a sale or a change in direction?
  • Review its statutes and the minutes from the latest general meetings to understand its policies.

A solid umbrella company is always willing to be transparent on these topics. Be wary of those who dodge or are reluctant to provide the requested information.

In Conclusion

When you are an IT expert, entrepreneur, freelancer or independent executive, here's the checklist to scrutinize when choosing the right umbrella company, the most suitable solution, and the status that best matches your activity:

  1. Check that fees are transparent, justified, and attractive, and what they are based on (turnover excluding tax?)
  2. Challenge the salespeople on their understanding of your technical stack and the IT sector players
  3. Examine contracts to hunt for sensitive clauses (intellectual property, penalties, etc.)
  4. Ask the company about its processes for international billing and payment management
  5. Read IT consultants' reviews and financial solidity indicators

If you consider that umbrella company with Weepo ticks all these boxes (clear offers, transparent fees, type of contract suited to you, comprehensive support, exclusive advantages), contact us now. We will present to you the ideal umbrella company solution for your freelance or independent executive activity, backed by client reviews and a new-generation market vision, in France or internationally.

Photo de profil de Lina MOREL

Responsable Marketing & Communication chez Weepo, je suis passionnée par l'animation du réseau et l'accompagnement de nos consultants. J'organise des événements parisiens et accompagne nos équipes régionales pour créer des moments d'échange enrichissants dans l'écosystème du portage salarial.