Outsourcing labour was traditionally about cost savings. Today, it is a deliberate means to capitalize on various skill sets and to have enough staffing to meet fluctuations in demand and still realize cost savings over in-house labour.

Today’s outsourcing allows businesses to reduce overall costs while also reducing the risks and sacrifices made by companies when outsourcing. Current practices also provide convenience;  Human resources can be available quickly when a need arises, without the overhead of a standard workforce or fees associated with traditional outsourcing.

But still, despite these modern practices, the majority of companies encounter immense challenges to find engineering talent via this route. If your business finds itself in a similar situation, let’s take a look at the problems in the outsourcing process and our solution for getting you the engineering talent you need as quickly as possible.

The Outsourcing Process

Traditionally, outsourcing, or the leveraging of third-party resources for staffing, has been a 7-stage process, and all outsourcing opportunities moved through these stages:

• Assessment of the business needs and sourcing strategy
• Defining the scope of work
• Select the vendor(s)
• Negotiate and procure the contract
• Manage the delivery of services
• Exiting/transferring the contract

Traditional challenges in finding engineering talent

Lengthy Process

The process was lengthy, time-consuming, and sometimes frustrating, and mis steps at any point in the process could prove costly. Miscalculations in basic requirements or growth could lead businesses to select the wrong type of agreement or even the wrong vendor to meet their needs. One had to consider all these possibilities, and others, before deciding if outsourcing was a good choice. After selecting a vendor and negotiating an agreement signed by both parties, the functions in the scope are finally available to the outsourced staff.

Lack of Control

A business owner typically has control of most aspects of the business, but with outsourcing, that can begin to change. Business owners and managers start to sacrifice a certain amount of power. Initially, it is the ability to directly manage the contract labour, as these workers will remain under the direct control of the outsourcing vendor. As time passes, business owners may also feel a loss of control in other aspects of the business. An employer will tell you that a business owner and the business’s employees know the company best. After all, they are on the front lines operating the business and making the decisions. In this position, they can also quickly gauge the current situation in their business sector. When outsourcing certain functions or tasks, the business owner sacrifices control. In some instances, there may be confusion over who is in control—the business or the outsourcing company.

Frequent turnover/High attrition

Traditional outsourcing matched employees from a pool of candidates or other sources with the company’s needs. The people in this pool may be seeking more permanent employment, or they may always be looking for the next best thing. Regardless, it’s not unusual to see high attrition rates in traditional outsourcing. People may just be looking to better themselves, and conventional outsourcing vendors often offer parallel positions that provide little room for self-improvement.

Responsibility

Although traditional outsourcing hiring was typically from a pool of candidates matched to a company’s needs or the available or convenient team, regardless of fit, the company is also responsible for costs associated with the staffing and overhead or other contractually required expenses. The company may also be contractually responsible for other fees, expenses, or special requirements, such as stipends for travel and housing with highly specialised or skilled staff. The company using traditional outsourcing still assumes a tremendous risk in outsourcing.

TechTeamz: A better way to find engineering talent

The challenges of traditional outsourcing include those listed above, among others. Companies needed to find a way to staff projects around the globe, using the exact skill set they need, at a reasonable cost, with less risk. The inability to control which staff are selected and their skill set can make it difficult to find engineering talent. The expectations may differ for the business, the outsourcing vendor, and even the outsource labour regarding project control, schedule, and other variables if these aren’t clearly stated in the contract. Differences could also arise if the outsource vendor has different expectations for the contract labour than the company has set for its employees, leading to potential friction and poor communication. Outsourced teams maybe already made, or put together specifically for a contract, regardless, these teams may not be a perfect fit for the company, or the team members may not work well together.

For the answer, turn to TechTeamz. With over 17 years of experience in providing specialized engineering talent, we can help you overcome the challenges of traditional outsourcing. So what are the ways that our solution is different?

Tailormade teams in weeks

We tailormake worldclass engineering teams for you in weeks. We’re always on the lookout for the perfect candidates for each position. Since we have access to such a large pool of candidates, we can find you experienced engineers, project managers, and technical staff at all levels.

Local leadership

We bring local leadership within Europe. TechTeamz is headquartered in Spain—a burgeoning high-tech engineering hub—with global resources available to find engineering talent. Our “local-first” approach to building teams uses our exclusive agile method to custom-build the best tech teams for our customers.

HR done right

Let us handle the HR side of things while you focus on your business. We employ teams directly, taking all the hiring, HR, global payroll and legal compliance issues away from you. Additionally, there are no setup fees, or standard service charges. TechTeams will only bill you for actual days worked by our engineers, based on the agreed rates.

If you’re interested in outsourcing your tech functions or have an upcoming project needing technical engineering staff, count on us!