August 15, 2022

Why Google, Slack and Whatsup fish for top talent offshore…

Let me guess, you have your IT-talent acquisition strategy all sorted out already, right? No need for remote recruitment because you have a well-staffed internal recruitment team? And most important of all, your company has an in-office or a hybrid work policy where all employees most show their face a minimum of once a week? Congratulations my friend, no problems in paradise for you and no need to keep reading.

 

However, the reality facing many other companies is very different. The lack of skilled IT specialists is a global problem. According to the International Data Corporation (IDC), in 2020 the lack of IT skills incurs losses worldwide totaling $390 billion annually. This lack is reflected in the vast number of unfilled vacancies across the globe. The truth is that finding and retaining top senior developers is a hustle and a never-ending race. At Northprim, we believe that one major reason is that talent acquisition partners, CTOs, heads of people, and other recruitment professionals are all repeatedly fishing for talent in the same pool. Just tasting the same fish between each other. 

 

However, let us think a bit… 

 

It used to be a common practice to outsource only customer or call service functions. Nowadays, myriads areas of work make use of outsourcing, including entire technology or finance departments. This method is gaining ground across the world since it reaps considerable benefits for organizations that aspire to develop a fruitful and rewarding business model. More and more companies are outsourcing into deep waters to catch the big fishes: 

 

Senior developers, with a minimum of 5+ years of professional work experience, are incredibly multi-talented and immediately available at a low cost. 

In 2020, the global outsourcing tech market was worth $556.67bn, which makes up 77.75% of the global market. Big players like Google, Facebook, and Twitter have been fishing top talent for abroad for years. It is a well-structured and executed growth plan that has paid off. The challenge doesn’t lie in accepting what is new. The challenge is the unwillingness to leave what is old. Below are 5 reasons why you should:

1. Boost the team productivity


Boost the team productivity
 by outsourcing

It is a bit naive to think that the lack of It-talent will single-handed be solved at a national level in the future. No, instead of overburdening your staff with the abundance of various responsibilities, outsourcing gives a hand and removes the additional workload of your tech experts. Working from home is, and has always been an imaginary safety. Post-pandemic we have seen how working remotely is equally if not more productive than office work. Why not boost productivity even more with remote teams?

 

This allows the existing staff to carry out the original tasks professionally and stick around their range of expertise. The efficiency of organizations is enhanced owing to the shared amount of work, resulting in faster product and service delivery. What’s more, outsourcing wards off burnout. It allows workers to slow down if necessary, and curb the mental exhaustion caused by acute stress that accumulates over time.

 

At Northprim, we have several great experiences of how our outsourcing model, Smartshoring has resulted in successful projects.

2. Find and retain excellent talent


talent outsourcing

No company is 100% well-staffed continuously over time. There are always skill gaps to be filled in order not to lose momentum. There’s a chance that you can’t find good developers in your current location. This may be caused by the absence of workers with expertise in a specific tech stack or time and budget constraints. Regardless of the reason, there is a great opportunity for your company to get a complete advantage by fishing talent remotely where you can catch experts in various niches like software engineering, QA, UI/UX, etc. 

It is not by coincidence that in post-pandemic times, 45% of companies plan to outsource the manpower with a skill set unavailable in-house. In the tech departments, the numbers are assumed to be even higher due to the lack of available It-experts on the!  This is clearly a strategic decision to strengthen the internal talent pool and gain a technical advantage over competitors.


Fun fact: Over 94% of Fortune 500 companies are outsourcing at least one major business function.

3. Minimize the element of risk 


Minimize risk by outsourcing

The loss of skilled employees induces results induces disruption of the flow of carrying out numerous appointments and meeting deadlines. Most importantly it can slow down or completely stop your development momentum, causing time lost and ultimately late deliverables. 

 

Finding a suitable replacement is often a time-consuming, tiring and long process that could distort the whole company’s progress. Conversely, outsourcing enables businesses to work continually, which minimizes the risk of interruptions of current projects. Risk is a business aspect that must be managed. It is too risky to only rely on your company’s recruitment apparatus to find you that top developer locally.  There are more fish in the sea. Do you really have the luxury of staying close to your shore because of tradition, routine, and safety, while your competitors are hunting in deep waters?

 

Google, WhatsApp, Slack, and Skype are only some of the high-profile businesses that opted for this practice. 

4. Keep down the costs!


keep down the cost by outsourcing

Our model, Smartsourcing is considered a way to save some money for your company. The widespread convention is that foreign labor cost is generally lower. It allows companies to hire skilled workers from abroad where the cost of labor can be up to 60% cheaper, right? 

 

True, you can hire more employees at a considerably lower cost. However, a warning is in place for those companies who venture into outsourcing with the primary incentive to lower the cost of staffing. Or as a mediocre substitute to office personnel, this is far from the truth, because: 

 

Price is what you pay, and value is what you get…\

 

Seniority will cost regardless of where you look. Acquiring top senior IT talent remotely at a lower rate is a bonus that comes with outsourcing. Your long-term strategic talent acquisition growth plan should not be based on price alone. Another bonus is saving that come from smaller office space, as well as reducing overall utility costs.

5. Reduced levied tax charges


Reduce tax by outsourcing

Speaking of finance sector benefits, some locations are more tax-efficient for outsourcing than others because of their significantly lower corporate tax rates. With that in mind, businesses can take advantage of conducting business overseas and thus considerably affect their bottom line. 

It is estimated that in Europe alone there are between 4,000 to 6,000 businesses. Bear in mind the stats as you make smart decisions for your company. 

So, what will you do now with this information? Where are you going to fish next time? 

At, Northprim offers a wide range of smartsourcing services including both front and backend development, and project and mobile app building. We will make your project a work of art!

If you are interested in finding out more about smartsourcing and what it could mean for your business, schedule an intro meeting with our CEO using this link.

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