business

What is outsourcing and how much does it cost?

What is outsourcing and how much does it cost?

What really is outsourcing of programmers, and other kinds of IT workers? You are going to find out in this article. We know how hard it is to find great specialists; the world has accelerated and moved into the internet and that is why the demand is so big. Is there a remedy for this issue? Of course, there is, but before I tell you what to look out for, let me introduce you to the subject.

What is the outsourcing of IT workers? Short and precise definition

Whether you think of outsourcing a whole department, a task, or simply you want to get rid of some “problem” you wonder about losing something. Losing control over a company, loss of firms inside culture, because it is much harder to keep good relations with outsourced employees than regular ones. A lot of those worries are a true issue, but the year 2020 brought a lot of changes, remote work for example.

Giants of this world turn to remote work, they don’t need to be chained to a location, work hours do not have to be so strict. The world is changing, technology accelerated and IT outsourcing is becoming more and more popular. Programmers pay incredibly elevated, which is the least important issue in our world right now. Access to foreign attractive companies is a “problem”. Renting programmers became something popular due to mentioned phenomenon.

It is a real challenge for polish employers, who often do not keep up with the American, Swedish, Israeli, or German markets.

Outsourcing is the solution, or simply renting IT specialists!

Readable and simple definition of IT outsourcing

Outsourcing of IT workers is nothing other than expanding an already existing programming team with additional, remote working ones.

Outsourcing programmers, price list – specific enumeration!

There are a few factors, which are to be taken into consideration when you think about outsourcing IT workers. Rent of IT specialists can be pricey, but there are few questions that will help you find a solution!

  • Technologies, libraries, programming languages (are they common, what are the hourly rates?)
  • When does the project start, what is the deadline? (Are programmers needed as fast as possible?)
  • Experience of the programmer and the number of commercial projects in required technology (did the programmer made anything similar before?)
  • Size of the project, needed number of hours (how big is the project, will the programmer be needed 8 hours every day?)

After answering those four basic questions it will become much easier to discuss and negotiate pay. There are no stable and averaged rates. The pay of a Senior React Developer with seven years of experience in creating commercial projects will be much higher than a payment of a Senior React Developer, who is working for 5 years on one project, which is in an upkeep phase. In conclusion, it is not worth following only the statistics of a professional, but analyzing the value he can bring to the project and firm.

Average salary of programmers in 2020

Depending on the type of contract and technology held in their CV, programmers can earn as much as 10-15 to even 20 thousand PLN every month. Creating solutions, which take into account the functionality of artificial intelligence and machine learning is another brick in a pay rise. Subjects such as Big Data, Business Intelligence or Blockchain lead the way and the salary of programmers, who excel in those areas, can reach astronomical values – a monthly 20/30 thousand of PLN.

How to solve this issue and cut costs?

Most important is to understand that the model of remote work becomes more popular and the trend is irreversible. Recent events only accelerated the accessibility of remote work, which in consequence changed the job market. Programmers can comfortably create codes for American companies and a polish employer can cooperate with a programmer from the other end of the country, and feel both understanding and a bond! Renting a programmer or a whole team is a solution practiced for years, however, today's challenges certainly contributed to the amazing progress of this kind of cooperation.

  • Create processes, implement communication tools, which will simplify remote work and eliminate communication dissonance between programmers,
  • Take care of everyday communication with a whole team,
  • Create a set of tools, to make the process of exchanging knowledge and experience, easier,
  • Choose a corporate tool that will make it easier to organize work for programmers,
  • Encourage all employees to socialize every day, make video calls and morning coffees,
  • Take care of eye-to-eye contact with your programmers.

If as a company you are ready to open yourself to a completely new market and you look for IT employees, you just made a great decision. Every kind of using XXI century’s possibilities that help save time and money is a great chance for business.

How to find a company that deals with outsourcing programmers?

It is worth choosing a firm that fulfills all our technical requirements connected with an upcoming project. Apart from financial issues, it is important to look at the responsiveness of the company, was your question answered quickly, and were the answers exhausted?

Another aspect you should not overlook is a real experience of a firm making IT projects and providing with remote working programmers. Has this company ever made something similar to your project? Does it have programmers, who will be ready to spend 8 hours daily on your project? Remember to ask a lot of questions, it is not a good idea to work with firms, which won’t give you precise answers.

Another important element is the time, or rather the length of your project or planned cooperation. Outsourcing programmers is often considered a great but short-term solution to the specific issue – in that case, lack of programmers in your city. However, if cooperation goes great and you don’t waste loads of cash for building an inside programming team and expanding HR team, there is no need to resign from this “temporary solution”.

When the cooperation lasts for years, both firms have a deep understanding of the subject of services they provide and on everyday challenges, it becomes an incredible asset that should not be destroyed. The technological partnership is very valuable today and what comes with it – much more important than short-term cooperation with “friend of a friend, who programmed something some time ago”.

Why finding a programmer is so difficult and costly?

There is a multitude of reasons for that and we mentioned a few of them, but it is important to mention a key element – incredible technological advances all over the world. All of the biggest economies in the modern world spend billions of dollars and euros in a race of creating the newest technological solutions. The USA blocks Huawei that is starting to create its own ecosystem. Spotify completely transitions to remote work and Elon Musk is becoming the richest man in the world. Even Motorola, which creates smartphones on the side has found its market.

Over 4 billion people in 2021 are using the internet, it is over 60 percent of the whole population. Recent data shows that in 12 months over 20 million new users joined the web. The market is enormous, technological needs are too; it is the main reason for the demand for programmers of all types – those, who create web and mobile applications, payment systems, and those specialized in e-commerce.

What does it mean for your firm?

As you can figure it out, the situation will not change anytime soon. There are estimations, which show that until 2025 internet will be used by 6 billion people. The market will grow again, niches will emerge with a need to be developed. It is great news, but it will be reflected in the growing salaries of programmers, who will become even less accessible than they are.

A great step would be to start a technological partnership with a company, which will help in the field of providing programmers, and creating dedicated software.

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Oskar Pawlicki
14/10/2021
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