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Going forward in 2022, it is going to get even more difficult to hire IT talent than what the situation currently is. This is not only because of a talent crunch. There are a few other factors at play here including demand & supply, skillsets availability, experience vs payout, notice period, digital adoption across industries, maintaining cybersecurity in remote/hybrid models. Furthermore, tech startups face competition from established tech giants. Technical resources choose established firms that are providing higher compensation and benefits. For newer startups looking to build an initial tech team, this poses a major challenge.

Some other reasons which increase the difficulty in IT hiring include

  • Managing health and safety protocols in the pandemic.
  • Integrating the right technology for hybrid/remote communication.
  • Providing technical resources with the desired career progression.

How do we go about addressing these challenges?

Since the pandemic, there have been changes to the approach to building tech teams. Alternatives to in-house hiring such as outsourcing have increased. The pandemic has raised challenges in building local teams. Many firms responded to these challenges by outsourcing IT requirements not only the resources but also their product development. This uncovered more benefits in building teams such as:

  • Tapping into relevant talent from locations that were earlier inaccessible or not thought of,
  • Reducing costs involved in setting up infrastructure for new hires,
  • Quicker fulfilment of engineering positions,
  • Business continuity and adherence to product roadmap as well as pre-defined timelines & milestones,
  • An increase in outsourcing has allowed tech startups to view the value of technology partners as co-innovators rather than skillset providers

Here are some of the other instances of increased outsourcing since the pandemic.

Increase in Digital Adoption

Global IT expenditure is forecasted to grow by more than 5% in 2022 which is almost twice than the pre-Covid forecast average. Digital Adoption for businesses and startups saw a rampant increase in the last 2 years. This is because companies had to start adopting communication technologies. Furthermore, even simple business operations such as employee timesheets, activity trackers, team updates became digitized. Since companies adopted digitization as a necessity, they also started realizing its value.

More efficient and modern practices in the business operation side of things are likely to continue for several years. An increasing number of custom software development companies like Pratiti are helping customers build custom solutions vis-à-vis their requirements.

Outsourcing is now a core business function and not just cost reduction

Among the numerous changes brought about by Covid-19, IT has become an integral part of strengthening business operations. IT outsourcing companies are quickly adapting to these new dynamics and becoming more focused on providing the best services to their customers. Earlier, outsourcing served as a support function that allowed tech startups and enterprises to focus on core activities such as growth, strategy, and the ideation of new products. However, outsourcing has now evolved as a function that assists innovation and new product development, to help companies validate their ideas in the market.

Reducing Infrastructure Cost through Digitization

As a result of Covid-19, businesses are focusing more on saving money and getting more work done at a lower cost, resulting in the outsourcing of functions like payroll services. For businesses, IT outsourcing is the ideal option. Companies can eliminate office space expenditures and all associated costs by engaging IT service providers and other offshore software developers.

In-house resources possess the expertise to develop new products. But to ensure that these products are sustainable and monetizable in the market, there needs to exist a new product development roadmap. This includes validating the feasibility of new product ideas through processes such as proof of concept.

Testing new product ideas for feasibility is extremely important before launching the full-fledged product.

This new product development roadmap can be outsourced to organizations that have the expertise and capabilities to validate a product definition and build the corresponding proof of concept, minimum viable product (MVP), or prototype. This ensures a higher chance of success for new products, as well as knowing what to do if you identify why your product is not yet feasible for the market.

Product Support is as important as Product Development

Once a product is deployed, it becomes important to integrate a support ecosystem for it to sustain itself in the market. If your limited in-house team focuses on all of these parameters, it becomes difficult to focus on overall product innovation and organizational growth. Product Support functions include setting up automated QA practices, a cloud solution to help with performance analysis among other benefits, and helping companies reduce Total Cost of Ownership (TCO) and boost revenues by right-sizing the team, right-shoring the resources, and right-shaping products. Setting up this ecosystem is unexplored trenches for many companies in their early to mid-stages.

IT hiring for these fields becomes difficult because you do not know how to set up product support departments and what resources to look for. For example – are you looking for pure quality assurance engineers (QA) or are you looking to hire SDETs (Software Development Engineers in Test)? Different kinds of products will require different kinds of resources, with niche skillsets. With these added layers of complexity, it is best to leverage the expertise of product support services providers who can set up an efficient ecosystem for you.

The landscape involved in business operations and hiring resources has changed dramatically in the last few months and has set precedent for the evolution of these parameters for several years to come. If you are looking for a technology partner to integrate these evolutions into your business, reach out to an expert custom software solution and outsourced product development partner like Pratiti Technologies to accelerate your digital transformation journey today.


Nitin Tappe

After successful stint in a corporate role, Nitin is back to what he enjoys most – conceptualizing new software solutions to solve business problems. Nitin is a postgraduate from IIT, Mumbai, India and in his 24 years of career, has played key roles in building a desktop as well as enterprise solutions right from idealization to launch which are adopted by many Fortune 500 companies. As a Founder member of Pratiti Technologies, he is committed to applying his management learning as well as the passion for building new solutions to realize your innovation with certainty.

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