Business circumstances influenced by the market development, tech proliferation and stimulated by the ongoing pandemic are constantly changing. While at home-based office setup or back-to premise environments, the companies of all sizes are struggling to close the talent gap as skills shortage is looming. This inevitably comes with its complications and flaws causing a big headache for business owners.
According to PwC’s (PricewaterhouseCoopers) latest Annual Global CEO survey, business leaders consider the ‘availability of key skills’ a top 10 ‘threat.’ The reasons for this worry may vary, but the global consensus is that hiring is going to get a lot harder.
CEOs from Western Europe regard the availability of critical skills as a top-five issue to be concerned about, while their North American counterparts put it in sixth. One reason could be the aging population in both regions. There aren’t enough skilled workers to keep up with economic growth and new technology.
This talent shortfall comes even as the ‘Fourth Industrial Revolution’ has created a demand for new technical and soft skills. Apart from talent costs increasing, this skills gap could also slow down innovation.
In particular, the impact is clear in the software industry. IT recruitment has become a far more difficult process in recent years. Here are some of the common issues recruiters face, in addition to lacking competent workers:
One answer could be ‘staffing-as-a-solution’ services. These are professional staffing services that offer companies flexible hiring solutions.
Flexible hiring solutions keep booming because of a general shift of how work is perceived. Skilled workers do not necessarily opt for fixed working hours to bring in value to the project and make decent earnings, and flexibility offers them just that – a greater work-life balance. There exist a couple of options. Freelancers, living the “work-for-yourself dream”, whether on a full-time or side hustle basis has been a trend for quite a while already and continues to be a popular practice. Some prefer to be ‘digital nomads’(a digital nomad can very well work for a company) — individuals who work online while travelling places. Others like the option of keeping their own hours and dedicating time to the work they choose, living from one gig to the next.
This ‘gig economy’ has matured over the past decade. A report from Harvard Business Review estimates there are 150 million ‘independent contractors’ ( skilled independent professionals working on project-by-project basis) in North America and Western Europe. In Britain, the size of this flexible workforce doubled from 2016 to 2019, accounting for 4.7 million workers.
Companies now have the option of hiring talent per assignment or project. Staffing services, in turn, have made the process of flexible hiring more robust. Dealing with individual freelancers has a greater risk than working with a staffing services provider that specializes in IT and software talent. To understand what we mean, let’s take a more detailed look at all the options available.
Staff augmentation is typically defined as an outsourcing strategy, flexible staffing option that looks to add specific or extra talent to augment an existing workforce or project. The objective of such a solution, especially in IT, would be to add technical or niche skills to a team; for example, expertise in a particular tech stack. The company, and not the staffing provider, manages the team and has full control over what work is done by the augmented staff.
Staff augmentation, or the team extension model, should not be confused with similar freelance options. Let’s run through some of the more common ones.
Staff augmentation and team extension models are good options under certain circumstances:
If augmented staff focuses on individual workers and skills, team leasing and dedicated teams shift the focus to the project. Here, the staffing service provider puts together a team of experts based on your project’s requirements, who will work exclusively on your assignment.
For example, a dedicated team for web development will have front-end and back-end engineers, database engineers, UX/UI developers and so on. Of course, you have the right to choose the developers or engineers you want from the vast talent pool.
Team leasing is often used when you manage a product’s development. In contrast, a dedicated software development team usually has a product manager as a single point of contact to manage the project for you. However, you’re still involved in the project daily.
You can change the team’s composition, adding or removing members during various project stages. Also, you can scale the team as requirements shift; such as, to cope with increased customer demands or trim the crew once a product is developed and you only need a few people to test and maintain it.
Despite a third-party staffing provider, setting up your team, you’re still in charge. You set the objectives and decide how the project proceeds based on business needs.
Team leasing is a good option if you want to have greater control over your software developers. For instance, if you’re developing a new feature for an existing product, you might need the added control. If not, outsourcing would be the way to go, where you would only have to focus on the results and not the process.
According to this report from Harvard Business Review, employers spend an average of $4,129 per hire in the U.S. And if it’s a managerial role or skills in demand, like in the software industry, the cost is considerably higher. Yet, permanent employment is still the most common route to hiring. With permanent employment as a staffing option, one can accomplish three primary goals: receive the promised quality of new hires, mitigate possible risks within recruitment of new staff, and decrease the cost of labor delivery.
Things are changing, though. For example, it’s no longer unusual to depend on third-party agencies to find the best permanent talent. Even the greatest in-house HR/recruitment teams struggle with hiring a qualified IT staff. This is because each software skill is an industry in itself now and the most successful recruiters are those who understand the technologies involved.
Recruiting efforts, especially for specific IT talents are always time- and resource- consuming. Limited staff market availability, timelines pressure, screening and interviewing candidates, etc is a trying process. This is where a trusted staffing services provider can help, so that you can focus on your vital business development needs. A key proven advantage of such an offering is that by working closely with the inhouse HR departments, the esteemed staffing service providers support businesses with optimized assistance according to the particular company needs and set timelines. A professional team of seasoned industry insiders know how, why and if to fill in the position with the fit that would work best.
Business Process Outsourcing (BPO) is defined as moving an entire organization’s operations to third-party vendors and this has actually been a part of the IT industry for decades now. Of course, the ways in which business processes are outsourced have changed as technology has developed.
Outsourcing business processes is a long-term and often permanent strategy. Companies choose this route when they know for sure an experienced company can achieve better results than an in-house team.
This leaves the company to focus on core business development and growth. The vendors have complete control over processes while the company is concerned only with the final results. Here are the advantages of business process outsourcing.
Among the key indicators impacting the ultimate success of any IT project, there are organized approach to concept implementation, a right choice of software development tools and methodology, and a match of the IT professionals to the project requirements.
Modern digital business requires a qualified staff with relevant experience and skillset. Flexible staffing options that would conform to the project’s objectives and business requirements are what every business needs, irrespective of the company size.
Our clients from various industry verticals approach us hoping to achieve better efficiency and scalability with the teams that match their urgent needs and talents at the center. We, at Avenga, have been on the IT market developing digital products and helping our clients with technology capabilities for 20 years already, and we keep proving that success is about people. Whether you choose staff augmentation, team leasing or permanent employment contracts, our services will give you access to the industry’s most skilled workers. Our promise to you is that we will stay committed to your business requirements and source your best digital fit.
Avenga can help your business stay flexible, lean and agile without having to miss out on the expertise that makes your product stand out from the competition. We locate, integrate and retain your outsourced software developers. Avenga staffing services can ensure you stay ahead by scaling your team as fast as you want.