There’s no denying that there’s a War for Talent going on in the IT market. Companies are battling each other for a chance to create the engineering team of their dreams, a super-group of highly skilled tech individuals that will tackle one challenge after the other, ever scaling their company to IPO standards. Talent, however, is scarce and rare nowadays as talent shortage has reached a whopping 45%, on a global scale and remains the biggest challenge amongst hiring and recruiting firms.

Source: ManpowerGroup

Therefore, most tech companies end up not going through with their project plans or delaying them while trying to find the needle in the haystack leading to revenue losses and to VC frustration.

Other I.T entities are trying to entice remaining talent by offering flexible working schemes or increased salaries, benefits that are highly valued by the I.T community but, seem to be of minimal value in the long run, as employee turnover rates remain high with the majority of developers reporting to change jobs every 1-2 years.

Amongst the many strategic decisions that have been employed by IT companies in their search for an engineering super-team to create highly scalable projects, there is one that has yet to be explored at maximum; outsourcing.

In the paragraphs below, we will attempt to shed some light on the benefits provided by outsourcing your entire IT department or some of your projects and, spoiler alert, you will find them interesting.

Reduced Costs

The first benefit of outsourcing your IT team should come as no surprise. Ultimately, renting a fully fledged team to work on a project on your behalf, is way cheaper than building one from the ground up. A junior level IT professional starts with an average salary of 32.000$ per year while an IT manager can earn up to 84.000$ per year while, other sources, set these numbers at 50.000$ per year and 115.000$ per year, respectively. Factoring in the costs for any extra benefits, training, sick days, the cost of employee turnover, calculated at 1.5xAnnual Salary at a minimum, and potential hiring costs that, on average can amount to 4000$ per position according to Bersin by Deloitte, you easily reach hundreds of thousands of dollars per year, for a single employee.

Meanwhile, outsourcing your entire IT department, can save you up to 50% and help you allocate your resources elsewhere.

Saves Time

As we’ve discussed above, your company is not the only one looking for talent wherever they can. Aside from the talent being scarce, developers nowadays have way too many companies they can pick from and way too many offers in their hands, resulting in ever-increasing Time to Hire metrics for IT companies worldwide. Nowadays, it can take up to 53 days to fill an open IT position with a cost of approximately 500$ for every day the position remains vacant.
On the other hand, renting an entire IT department can happen instantly saving you time and therefore, money.

You pay for Quality

Working side by side with a professional IT team ready to take on your projects can offer you just that; professionalism and expertise. Rest assured, you will be giving your tasks away to a team of experienced and always up-to-date developers that will treat your product like it’s theirs. You do not need to spend time or any additional resources to train them as they’ll always be up to par and better than the competition.
Furthermore, at times they can offer you some high-quality advice on your business strategies as they pay attention to the bigger picture and can align your strategic goals with your products.

Bonus points if you find a team that actually likes to be working together and has managed to develop camaraderie and team cohesion, over the years.

Frees up your Human Resources

Aside from any additional time and money, you save when working with an experienced and professional team, you allow your own IT team to focus on specific projects and specific matters at hand. You ensure your internal human capital remains focused and productive, you reduce employee burnout while at the same time, a group of experts is taking care of other important projects you’d want to follow through with.

To conclude, outsourcing your IT team and your projects might be a business strategy a company needs to consider in an ever competitive environment, in order to maintain its scalability while protecting their ROI. Do you concede some level of control? Absolutely, but, in the end, you can find teams that are worth it, that will respect your products and refrain from tarnishing your brand name. A group of experts you can always rely on.