Contractor and umbrella companies have the opportunity to flourish in 2011, according to one expert.

John Brazier, managing director of PCG, has said that redundancies, public sector cuts and financial adversity will cause many to approach the coming year with apprehension.

However, continues the expert, the nature of contracting could help the sector to put aside these worries more quickly than other industries.

"I believe that if there is one sector of our community ready for the challenges ahead it is the UK's growing freelance community," said Mr Brazier.

"This is a skilled, resourceful and flexible group able to adapt quickly to the needs of clients," he added.

Meanwhile, John White of venTAJA Marketing writes on freelancefolder.com that lessons can be learnt from 2010. 

These include that contractors must be willing to perform many different tasks, ensure they are financially secure and remain confident about their own ability.