Building a team in-house that should cover all your needs all the time is sooo…. 2019. Or even more outdated, since delegating different services to remote partners, from HR to marketing to IT has been the “new normal” for a while now.
Initially, looking for external help was mostly about cutting costs. Almost half (49%) of companies name freeing up resources to focus on core business as the reason for using remote IT partners. Saving money comes second with 45%.
According to Deloitte global outsourcing survey, today we’ve reached an age of disruptive outsourcing. This means integrating services an organization cannot quickly build on its own to innovate, transform, and propel its growth. Even though cost efficiency is still a big part of partnering up, the focus is shifting to competitive advantage and becoming more flexible as an organization as a whole.
Both cutting cost and flexibility as a competitive angle are especially important in the post-COVID-19 world. The times are too uncertain to make the investment of hiring new people full time but at the same time projects can’t wait. That’s where flexible remote partners come especially handy.
IT services are among the most suitable for delegation since they’re inherently flexible and without physical limitations. IT workers make up more than 60% of the total outsourcing market and the total contract value of the IT outsourcing market was predicted to grow to over $409 billion USD by 2022 even before this pandemic.
But being nimble and efficient is only one half of the coin – with more and more demand for IT services and less talent to go around, it’s a way to divide that talent more sparingly. By 2020 there will be 1.4 million computer specialist job openings, which creates a talent gap of 30%. Using external partners enables companies to target talent and complement their existing teams in the right place at the right time.
So who should team up with a remote engineering partner? Basically, anyone who wants to gain a competitive edge in their business and tap into this less-explored corner of the talent pool, while organizing their work more flexibly. As they say, those who don’t adapt ultimately perish.
Too poetic for you? Well, here are some more specific examples of the situations and companies who should consider adding engineering partners for their organizational strategy.
- Smaller startups or companies who don’t have the time, resources or competence to groom their own development teams. Startups need to scale and deliver quickly to not lose momentum. IT and finance are the most commonly outsourced jobs for smaller companies with 37% of these tasks delegated. If the startup or small company has very diverse needs – trying to cover them with full-time employees might just not be reasonable.
- Bigger companies needing extra lifting power for busier times or specific projects. It’s not only the small organizations that can benefit from flexible help. Even though bigger organizations usually have an IT team of their own and more people with different skill sets can be organized and rearranged based on changing needs more easily, incorporating external people can help balance a fluctuating workload efficiently.
- Any type of projects that can greatly benefit from an experienced partner. About 46% of companies say delegating some tasks lets them access skill sets that aren’t available in-house. Partners with specific competencies also reduce time and money spent on recruiting and training.
READ MORE: Don’t reinvent the wheel – 3 biggest reasons to team up with a fintech development partner
External engineering partners are best suited for solving separate problems that can be worked out with the partner as a whole. You get the best results if the partner clearly understands the organization’s current capabilities, needs, and future goals, i.e. an equal partner who both understands your business development and technical needs.
Are you already looking for an engineering partner? Or did this article give you a nagging suspicion that you might need to start looking for one? Producement can help. Get in touch with Keith to discuss how we can benefit your business.