5 reasons why outsourcing IT is better than recruiting

The IT industry is highly competitive not only for aspiring young professionals who desire to build a career, but also for companies that need to fight for the best available professionals in order to deliver high quality products. It’s a revolutionary environment that has been challenging established models of business cooperation and pushing organizations to adapt. Instead of creating or expanding teams using traditional recruitment processes, more employers are benefiting from outsourcing tasks or projects. Reduced costs, faster implementation and the opportunity of attracting better talent are just a few of the advantages brought by outsourcing.
- Short and mid-term profitability
Most of the attractive agreements for an in-house position include benefits such as bonuses, paid holidays, sick leave and insurance. Moreover, the company has costs to provide and maintain office space, equipment and software, not to mention the resources necessary to find, assess and instruct the candidates. This big investment will only be recovered if the cooperation with the professional will last for quite some time. Due to those fixed costs, outsourcing is an alternative that remains profitable for up to 24 months of contract, providing the best solution for short and mid-term projects.
- Cooperation begins faster
The task of locating, recruiting, assessing and testing candidates not only costs money, but also requires a vast amount of time and effort. It is necessary to allocate a team specifically to hunt a new talent and the process is likely to last for a few months. A specialized outsourcing company does its own recruitment and has a network of skilled and qualified professionals ready to start working. There are less formalities and additional developers can be quickly brought in when time is of the essence.
- Avoiding recruitment fees
Aware of the high costs of searching for talent through an internal HR department, many organizations rely on the services of specialized recruitment agencies. However, this strategy can represent high costs. Most agencies will require either a fixed payment in advance or a contingency fee that can range from 15 to 25% of the employee’s first year compensation. It’s an expensive option particularly considering the duration of the cooperation or the high risk of turnover.
- Backup plans for replacement
Seen as an issue in most industries, personnel turnover is rather common in IT. In the current climate, developers — particularly the best ones — get lots of offers and often prefer to diversify their portfolio. That’s one of the reasons why the traditional long-term employment has lost space to shorter contracts. Moreover, outsourcing companies offer the warranty of Service Level Agreements (SLA) in their contracts and take responsibility of replacing a professional if necessary, among other advantages.

- Resources according to your needs
Some IT projects require different levels of involvement according to the stages of implementation. It is more convenient and cost-efficient to hire developers to match the workload or specific skills required at each phase of the project. This process can be easily achieved through outsourcing, while an in-house team of developers will mostly have a determined capacity that will limit the time in which the product can be implemented.
- Takeaway…
While in some industries outsourcing is mostly a way to cut down labour costs, this model of cooperation is becoming a constant in IT. In such a dynamic and global market, companies are no longer attached to geographical boundaries when searching for talent. Additionally, some of the best programmers in the business are attracted by the flexibility of working different projects for organizations all over the world. Outsourcing is a cost-effective way to tap into a global talent pool of developers and add skills, value and experience to a project that would never be achievable through traditional recruitment.
If you are considering IT outsourcing — contact us through our website! :)

