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How Software Outsourcing Can Help Your HR Department

How Software Outsourcing Can Help Your HR Department

Wednesday May 29, 2019,

4 min Read

According to PayScale’s 2019 Compensation Best Practices Report, 66% of employers cited staff retention as a growing concern. In today’s competitive business landscape, the employment opportunities available to overworked employees are abundant, particularly in industries with skill shortages.

Software outsourcing can help alleviate stress on employees and HR departments alike by accessing specialist expertise when it’s needed most. Let’s look at how software outsourcing services can help HR departments reduce costs, streamline recruitment processes and ultimately, retain top talent.

66% of Organizations

Reduced Hiring and Training Costs

Outsourcing software development eliminates the need for HR department to hire full-time employees, thus reducing the costs associated with recruitment. It enables companies to stay financially flexible and scale their software development needs up or down according to demand. 

According to recruitment software specialists RecruiterBox, the cost of hiring one new employee in a professional industry could be as high as $5,000 by the time advertising, travel expenses and recruiter fees are taken into consideration. 

When we consider that PayScale reports the average software engineer salary as just over $83,000 USD, it becomes clear just how expensive hiring full-time staff can be. And this figure doesn’t include the additional costs of pensions and bonuses.

HR departments can avoid the overhead costs associated with hiring by outsourcing software development to a dedicated IT outsourcing partner. Outsourcing companies have more capacity to deliver specialized talent in a very short time. 

Further savings can be made by eliminating the need for staff on-boarding and professional development training. The Association for Talent Development’s 2016 State of the Industry report reveals that the average cost of training a new employee is just over $1,200. With software outsourcing, your developers are already fully-trained with years of experience under their belt.

Average Pay for a Software Engineer

A More Streamlined Recruitment Process 

Outsourcing software development frees up an HR department’s capacity to focus on other aspects of human resources. Company review website Glassdoor’s report ‘Why is Hiring Taking longer?’ states that the average search for a new employee takes 23 days. And when we consider industries with skills shortages, like the tech sector, this process is likely to take even longer.

Outsourcing development to an external team of IT specialists means that HR departments don’t need to spend time writing job adverts, publicizing vacancies, reviewing applications, interviewing potential candidates and responding to applicants. Outsourcing provides instant access to a dedicated expert team ready to execute the brief. 

Access to Worldwide Talent

Working with a software outsourcing service provides HR departments with access to a pool of worldwide developer talent. According to commercial software company, ArcGIS’ survey, Six-Figure Tech Salaries: Creating the Next Developer Workforce, almost a quarter of a million of the development jobs that remain unfilled in the U.S. are a result of the digital skills gap. This skills shortage makes finding and hiring specialized developers an ongoing uphill struggle for HR departments.

In the Information Age, hiring decisions are no longer bound by a company’s geographic location. Outsourcing development means that HR teams can gain global access to the most exceptional developers.

By partnering with a dedicated outsourcing specialist, HR teams don’t need to worry about skill level. They will gain access to experienced developers boasting a range of tech skills, from cloud computing to UX design.

Increased Efficiency and Productivity In-house

When software projects are outsourced, HR departments and companies as a whole, benefit from increased efficiency and productivity from their in-house development teams.

Risk management company Willis Towers Watson, reports that 75% of U.S. employers rank stress as their top health and productivity concern. Outsourcing all, or part of a development project provides HR teams with peace of mind that employee workloads are manageable. 

When employees experience good health and wellbeing, efficiency and productivity increases. Workers avoid ‘burn out’ caused by unrealistic deadlines and stretched resources, which means fewer sick days for HR departments to manage.

When full-time developers are overloaded with work, it can have a knock-on effect on the overall performance of a company. Team members may start cutting corners to meet deadlines, which puts development projects at risk. By sharing the workload through outsourcing, unnecessary stress can be avoided, ensuring high-quality products are delivered on time.

Avoid Complicated Compliance Procedures

Outsourcing development reduces the need for HR teams to ensure that rigorous compliance procedures are adhered to.

When working with an outsourcing team, compliance responsibility is shared. The process of vetting staff and processing paperwork is all but eliminated as these elements will already have been organized by the outsourcing company.

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