Efficient Strategies for Building an IT Team Without Overspending

Every company aims to expand and grow, necessitating the management of recruitment processes. However, if you’ve already enlarged your team, you’re likely aware that the entire process can be time-consuming and generate additional costs.

In this concise guide, we will present three of the most popular methods for finding exceptional talent for your company and highlight their advantages and drawbacks. This will enable you to select an option that aligns with your requirements without straining your budget.

Setting Your Priorities

The initial step in making informed decisions is to establish your priorities. Your priorities will determine the plan and assumptions that guide your choices. Consider how the following factors impact your company or specific projects:

  • Current needs
  • Budget
  • Recruitment deadlines
  • Project lifespan
  • Project phase

Keep in mind that similar projects in different companies or various projects within your organization can differ significantly in each aspect, so careful consideration of each element is essential.

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Standard Recruitment Approach

The conventional approach involves entrusting the HR department with all recruitment processes in the company. However, this approach may lack specialization, as the same HR recruiter is tasked with finding IT, Sales, Marketing experts, and Administration staff. This becomes especially crucial for technical positions, managerial roles, C-level positions, or when your company offers a diverse range of services or products.

Typically, HR departments employ common tools to locate specialists, with the most prevalent being job postings on well-known job portals like Indeed, Glassdoor, LinkedIn, Monster, ZipRecruiter, SimplyHired, and waiting for candidates to respond.

Pros:

  • In-house process
  • Initial cost appears lower (excluding recruitment team costs)
  • Familiarity with company needs

Cons:

  • Need to maintain a dedicated recruitment department
  • HR team manages recruitment for all departments without specialization
  • Uniform approach to recruitment (in IT, timing is critical)

If you believe your internal recruitment department needs support or you’re gearing up for a challenging project, it’s worth considering alternative recruiting methods. Which ones? Read on.

Permanent Recruitment

Permanent recruitment outsourcing has gained popularity in today’s competitive job market. Businesses, in their quest for top talent and streamlined hiring processes, have increasingly turned to outsourcing permanent recruitment. This practice entails collaborating with external recruitment agencies or professional firms specializing in talent acquisition to handle all aspects of permanent staff recruitment.

Method, step by step:

  • Provide the required tech stack, industry expertise, and a brief project description to the permanent recruitment provider.
  • The recruitment company will present candidates promptly, typically within 5-10 working days.
  • Conduct technical interviews and select the best candidates for your team.
  • Pay a fee if you decide to hire a candidate.

In contrast to the standard recruitment process, permanent recruitment involves not only an IT-specialized individual but also a recruiter specialized in a particular technology (e.g., Java, iOS, or PHP). Each technology comes with its specific requirements, and job postings are just one (often less effective) method among six other ways to find the best candidates for clients.

Pros:

  • Swift delivery of potential candidates
  • Leverages specialization and vast recruitment expert networks
  • Saves valuable time, resources, and effort

Cons:

  • Limited flexibility in resource scaling (increasing/decreasing)
  • Higher one-time recruitment costs (10-20% of the expert’s annual salary)
  • Requires CAPEX budget allocation
  • Reduces available headcounts in the department

Tips:

  • Negotiate fees for multiple candidates (12% savings can be negotiated).
  • Secure a guarantee period of at least 3 months (in case the candidate doesn’t meet
  • expectations, a replacement candidate will be provided at no extra cost).

Staff Augmentation by IT Outsourcing

IT outsourcing, or software development outsourcing, has become a preferred solution for companies seeking to expand their workforce quickly and efficiently. In this service, an external company provides experienced IT consultants who join your company’s team. These consultants work alongside your employees but are technically on the payroll of the third-party company.

Recruitment teams within outsourcing companies are specialized in their industry. This grants them not only theoretical knowledge but also practical insights into sourcing specialized candidates and assessing their skills at an early stage.

Method, step by step:

  • Share the required tech stack, industry expertise, and a brief project description with potential outsourcing partners.
  • The recruitment company will present candidates.
  • The outsourcing company maintains a pool of IT consultants and may recommend consultants from ongoing recruitment processes.
  • Conduct technical interviews and select the best candidates to join your team.
  • Enroll the chosen consultant in your company.
  • Receive monthly invoices based on timesheets and agreed-upon daily rates.

Pros:

  • No need to maintain an in-house recruitment department
  • Flexibility in resource scaling (increase/decrease)
  • Highly qualified industry-specific consultants
  • IT team as a service, with reduced costs compared to direct hiring
  • OPEX budget-friendly
  • No additional costs for vacations and sick leaves

Cons:

  • Costs comparable to full-time employment contracts
  • Intellectual property remains external

Tip: If you hire a substantial team of consultants, and one of them becomes pivotal for your organization, consider acquiring that consultant or offering the staffing company an arrangement to hire your key resource while taking on additional consultants.

Conclusion

The IT job market is dynamic compared to other industries. The choice of strategy depends on numerous factors, such as the size of your organization, objectives, budget, and more. While there’s no one-size-fits-all solution, it’s generally cost-effective to use Staff Augmentation services instead of conducting recruitment yourself if your IT department consists of more than ten employees, your search spans up to twelve months, you require highly qualified professionals with significant salary expectations, and you find it challenging to retain candidates long-term.

At New Digital Street, we can provide guidance on which strategy best suits your organization’s needs. Don’t hesitate to reach out to us for assistance.

 

 

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