How to Tackle the Tech Talent Shortage With IT Outsourcing?

The tech talent shortage is a pressing issue globally, leaving many companies struggling to fill essential roles. This gap not only hampers growth but also puts firms at a competitive disadvantage. Addressing this shortfall is crucial for sustaining innovation and maintaining a robust economy. This article delves into how businesses can use IT outsourcing to tackle tech talent shortage and offers insights into benefits, risks, and best practices.

Do you have a tech skill gap in your organisation? Are you looking for reliable IT specialists to supercharge your business? Deazy is the right outsourcing company to partner with. We make it easy for businesses to quickly find and hire experienced tech experts. Contact our team today. 

Understanding the Tech Talent Shortage

The issue of tech talent shortage is not limited to any particular nation; it's a worldwide dilemma. This skills shortage extends across multiple industries, most notably affecting the financial services, healthcare, banking, cybersecurity, and manufacturing sectors. A recent survey by ManpowerGroup reveals that a staggering 78% of employers in the IT industry are facing difficulties in recruitment, representing the most significant talent shortage in the last 17 years.

Failing to address this deficiency has severe implications. Companies experience delays in product development, lose their competitive edge, and are more susceptible to cybersecurity risks. On a broader scale, the skill gap can stifle economic growth as businesses may even consider relocating operations to countries with a more abundant talent pool, resulting in job and revenue losses domestically.

What Is IT Outsourcing?

This is the practice of delegating various technology-related tasks to external service providers. By doing so, companies can forgo the complexities of managing these functions in-house. The range of services that are commonly outsourced includes software development, data storage, and network management. 

Overcoming Tech Talent Shortage With IT Outsourcing

The decision between outsourcing IT services and hiring in-house is a critical one for organisations. Both approaches come with their own set of advantages and challenges. Below is a table that compares the two options, highlighting how outsourcing can help fill talent gaps.

While in-house hiring offers more control and easier communication, IT outsourcing provides a quick, flexible, and often more cost-effective way to get the needed expertise. The choice between the two will depend on various factors, including the firm's specific needs, strategic goals, and the complexity of the projects.

Types of IT Outsourcing

Businesses can explore various models to meet specific needs. These include offshore, nearshore, and onshore outsourcing, as well as specialised options like cloud-based and managed services. Understanding these types can help companies make informed decisions.

• Offshore Outsourcing: This involves allocating IT services to a provider located in a foreign country. Firms often choose this model for its cost-effectiveness, as labour expenses in countries like India, the Philippines, or Eastern Europe can be significantly lower than in Western countries. However, the time zone differences and potential language barriers are challenges that organisations must navigate. Offshoring is commonly used for software development, data entry, and customer support tasks.
• Nearshore Outsourcing: This is similar to offshore but involves contracting services to a neighbouring or nearby country. For example, a UK firm might outsource IT services to Ireland or Eastern Europe. The advantage of nearshoring is the reduced time zone difference, making real-time communication easier. It's often used for more complex assignments that require frequent collaboration, such as agile software development.
• Onshore Outsourcing: Onshoring involves assigning IT services to an agency within the same country. This eliminates language and time zone issues but is generally more expensive. Companies often opt for onshore outsourcing when they require specialised skills that are readily available domestically. It's commonly used for high-stakes projects where close collaboration and compliance with local regulations are crucial.
• Cloud Services: Companies can outsource computing resources, storage, and applications to a third-party cloud service provider. This eliminates the need for in-house hardware and software, reducing capital expenses. Cloud services also offer scalability, allowing businesses to easily adjust resources based on demand. Also, it enables focus on core operations, as upkeep and updates are handled by the service provider.
• Managed Services: It offers a comprehensive approach where an external team takes complete responsibility for a specific set of IT functions. This could range from managing a company's IT infrastructure to particular services like cybersecurity. Managed Service Providers (MSPs) offer expertise and tools that an might not have in-house, allowing them to focus on core business activities.

How Outsourcing Helps Fill Talent Gaps

As highlighted earlier, outsourcing serves as a strategic solution for organisations grappling with skill deficits in the IT sector. It offers immediate access to specialised skills, taps into a global talent pool, and provides flexible hiring models, including staff augmentation and dedicated teams.

Immediate Access to Expertise Across Tech Stacks

Contracting out development and other IT services allows organisations to quickly acquire expertise across various technology stacks, from front-end languages like JavaScript to back-end frameworks like Django. This is particularly beneficial when an assignment requires diverse skills that the in-house team may not possess. By outsourcing, companies can immediately bring in experts to fill these gaps, thereby accelerating timelines and ensuring high-quality output.

Global Talent Pool

The beauty of outsourcing is that it opens doors to a global talent pool. Whether it's software developers from Eastern Europe or data analysts from Asia, companies can access the best minds in the field, irrespective of geographical boundaries. This is invaluable for organisations in regions where certain skills are scarce or overly expensive, ensuring that skill gaps can be filled more efficiently and effectively.

Flexible Hiring Models

It offers various engagement models to suit the specific needs of an organisation. Whether it's project-based, hourly, or long-term contracts, companies have the flexibility to choose a model that aligns with their task requirements and budget constraints. This makes it easier to scale operations up or down, providing a dynamic solution to the ever-changing talent needs of an organisation.

Staff Augmentation and Dedicated Team

Outsourcing models like staff augmentation allow companies to temporarily add skilled professionals to their existing teams. This is ideal for short-term or to meet sudden increases in workload. On the other hand, a dedicated team model involves a long-term commitment where the outsourced team acts as an extension of the in-house team, focusing solely on the company. Both models offer ways to fill skill deficits quickly without the long-term commitment and costs associated with permanent in-house hiring.

Best Practices for IT Outsourcing

Adopting best practices is crucial for ensuring a successful partnership and outcome. Key areas to focus on include selecting the right partner, setting clear objectives and KPIs, and establishing effective communication strategies.

1. Choose an Outsourcing Partner

Selecting the best team is a pivotal decision that can significantly impact the success of your projects. The following elaborates on key factors to consider when making this essential choice:

2. Set Clear Objectives and KPIs 

Clearly defined objectives and KPIs are the backbone for the successful execution of any outsourced task. They provide a roadmap for the external agency and a framework for ongoing evaluation and course correction. Here's a detailed guide on how to set these crucial benchmarks:

Project Scope

The first step is to clearly outline the project scope. This should include specific deliverables, milestones, and timelines. A well-defined scope provides both parties with a mutual understanding of what is expected, thereby reducing the chances of misunderstandings or scope creep later on. 

Quality Standards

Quality standards are non-negotiable and must be explicitly defined from the outset. Whether it's coding standards, user interface design, or data security, these quality benchmarks are a measure against which the output can be evaluated. They also help maintain consistency, especially when multiple teams or vendors are involved.

Performance Metrics

KPIs serve as quantifiable measures of performance and should be aligned with the business objectives. Common indicators include delivery times, quality of work, and Return on Investment (ROI). For instance, if the assignment involves software development, metrics could include the number of bugs per release, user engagement levels, or speed of deployment. These offer a data-driven approach to assess the effectiveness of the partnership.

Review Mechanism

Regular review meetings are essential for tracking progress against the set KPIs. These should be scheduled at consistent intervals – weekly, bi-weekly, or monthly – and involve important stakeholders from both sides. The reviews offer an opportunity to evaluate what's working, what's not, and what needs to be adjusted.

Adjustments

Flexibility is essential in any operation. Be prepared to make adjustments to objectives and KPIs as the project progresses. Whether due to unforeseen challenges, changes in market conditions, or new insights, the ability to adapt is pivotal for long-term success.

3. Implement Effective Communication Strategies 

Effective communication is indeed the cornerstone of any successful IT outsourcing relationship. Even the most well-planned tasks can falter without clear, consistent, and transparent interaction. Below are some techniques to ensure smooth communication throughout the process.

Let Deazy Help You Fill Tech Talent Gaps

At Deazy, we understand the challenges you face in finding the right talent for your projects. That's why we've made it our mission to simplify the process for you. Our team of tech experts is skilled across various technology stacks, offering you a wide range of expertise in software development, quality assurance, and project management.

One of the standout features of partnering with us is our flexible hiring models. Whether you need to augment your existing team for a specific task or seek a dedicated squad for long-term collaboration, we offer solutions tailored to your needs. This allows you to effortlessly scale your team up or down, adapting to the ever-changing demands of your operations and the tech industry at large.

We also pride ourselves on our streamlined onboarding process. Share your project requirements with us, and we can have your new team members ready to go in as little as a week. Plus, our commitment to quality and effective communication ensures a smooth transition, allowing your in-house and outsourced teams to work harmoniously.

So, if you're struggling with filling tech talent gaps and are looking for a reliable, efficient, and flexible solution, Deazy is here to help. Let us be your strategic partner in achieving your technology objectives. Get in touch today!

Conclusion

IT outsourcing offers a strategic and effective solution for organisations facing tech talent shortages. From providing immediate access to specialised skills across various tech stacks to tapping into a large talent pool, it is a flexible and cost-effective approach. IT outsourcing also offers scalability, risk mitigation, and the opportunity to innovate by accessing global talent and technologies. 

For businesses looking to fill talent gaps without the hassle of lengthy recruitment processes, Deazy offers a streamlined, reliable service. With a focus on quality and effective communication, we can help you navigate the complexities of IT outsourcing, ensuring that you get the most out of this strategic business approach.

Frequently Asked Questions