Attracting and finding qualified professionals in the field of Information Technology (IT) is one of the biggest challenges for companies. That's why specialized recruitment and outsourcing services have emerged. However, choosing the ideal solution for a growing company is not always easy. In this article, we compare these two solutions, which help find and retain professionals, exploring their particularities, advantages, disadvantages, and what to consider about each approach.
Specialized IT recruitment: what does it entail?
Specialized recruitment is a service aimed at companies looking to hire highly qualified professionals specialized in the IT field, who are rarely available in the job market. With this service, the client company receives candidates identified and pre-validated by the specialized recruitment firm, and can subsequently hire the professionals it receives directly.
Given that the focus of companies providing these services is to attract, recruit, and select candidates from the IT sector, they have more resources, time, and expertise to dedicate to actively searching for highly specialized profiles, allowing their clients to allocate that time and resources to other tasks more important to their business. Additionally, they can be faster and more agile in identifying these types of professionals because they maintain constant contact with them.
Typically, the process involves analyzing the client's needs, developing an attraction and recruitment strategy through best practices in employer branding, curriculum screening, interviews, and ending with the sharing and selection of profiles.
What are its advantages?
Market knowledge
A company that uses this service will have access to the knowledge and resources that the supplier has at its disposal to quickly analyze the market and find a professional tailored to the needs of its clients. Additionally, due to their close contact, these types of companies are capable of offering market consultancy in terms of average salaries for certain areas, benefits valued by candidates, availability of certain profiles, among others.
Efficient use of internal resources
Another advantage of this service is the possibility for the client to use its internal resources more efficiently, focusing on what will really makes the company grow. In the case of a company already having an internal HR department, by hiring a specialized recruitment service, it will have more time to focus on internal measures that will improve the lives of all employees, enhancing their integration, motivation, and long-term retention.
Access to qualified candidates
Finally, as this is the focus of recruitment companies, it is normal for them to cultivate close relationships with universities and technological hubs, providing a closer contact with the most qualified professionals in the market. Considering that their recruiters have a greater knowledge of the IT market and the responsibilities of different positions, they can also quickly adapt to sector changes and find the most qualified and specialized profiles.
Challenges to Consider
Cultural Misalignment
Despite its advantages, Specialized IT Recruitment also has its challenges.
The culture of a company is not always easy to explain, but it is something that is felt and experienced by those who actually work in that company. For this reason, it is not always possible for recruitment companies to fully understand the way their client works, which can result in sharing candidates with some cultural misalignment.
Information Leakage
If there's data related to projects that needs to be kept confidential, then ideally this information should be communicated to the supplier and a Non-Disclosure Agreement (NDA) should be used so that the other party is responsible for any information leaks. On the other hand, it is important to keep in mind that candidates need to know some details about the project in order to be interested in it.
Exclusivity
Some specialized recruitment companies may also require their clients to sign an exclusivity agreement. This aims to make the partnership stronger and prevent candidates from being approached for the same projects by multiple suppliers, which could also tarnish the client's image and negatively affect their reputation.
While based on a logic that requires attention, these types of agreements, besides limiting options, bring greater dependence on the supplier the client chooses to work with.
And Outsourcing, what is it?
Outsourcing in IT is a business practice that relies on the use of an external service provider specialized in specific software solutions, with the intention of leveraging a particular area of business within IT.
It is widely used, especially in situations where there are not enough professionals for a certain role, hiring them is costly, or the role in question is outside the company's priorities and focus. Companies that resort to this model have access to a highly specialized service in the form of deliverables or professionals (consultants) with the necessary skills to effectively contribute to the clients' projects. Thus, in addition to expertise, outsourcing provides greater flexibility for companies, as it allows them to focus on the most relevant processes for their growth and to benefit from the service for as long as needed.
In terms of the process, before selecting the desired professional or team, it is very similar to specialized recruitment, involving the analysis of the client's needs, development of attraction and recruitment strategies, or selection of consultants with the best profile already working within the consulting firm, curriculum screening and interviews, ending with the sharing and selection of profiles.
Outsourcing Advantages for Tech Companies
Operational Efficiency
Similar to specialized recruitment, outsourcing also allows client companies to use their internal resources more effectively, freeing them to focus solely on the core activities of the business.
However, in this case, in addition to the client not having to worry about any attraction and hiring processes, they also don't need to worry about the career management of the consultant selected for their projects (or even their replacement if they decide to leave), freeing up their structure for other relevant tasks.
Flexibility and Reduced Overheads
Since the entire career management process (onboarding, training, payroll, equipment, general well-being, and off-boarding) is handled by the outsourcing company, clients do not have to worry about the hiring costs of the consultants selected for the projects.
Outsourcing also offers greater flexibility for companies, allowing them to use the service whenever they need it and, consequently, terminate it when they consider that their needs are met. This allows for more flexible growth for companies that can hire new members for their teams without putting pressure on their cost structure.
Safeguards and Guarantees
The relationship between the client company and the service provider is formalized through a contract that includes a Service Level Agreement (SLA), which is a document that consolidates all commitments between both parties, including the service details, the requirements and the metrics the provider must meet.
This contractual relationship is a significant asset for client companies, as it ensures that, in case the consultant decides to accept another job opportunity, they will have a quick replacement, and their project will not be affected.
The Disadvantages of Outsourcing
Reputation
This type of service still carries a somewhat negative connotation among candidates in this field due to their lack of knowledge about the responsibilities and costs that the supplying companies have.
Therefore, it is essential for clients considering these services to seek out the opinions of candidates who have been through processes with the supplier to understand whether the practices they use are the best or not.
Additional Costs
As it is an external service, it represents an extra cost for the company. However, it is also necessary to look at the advantages it brings and understand whether the cost paid is worthwhile, both in the present and in the long term.
Internal Division
Finally, another disadvantage to consider is the internal division that may be created. In other words, since not all professionals have the same employer and access to the same resources, events, among others, it creates the possibility of some distinction among team members.
So how can we choose between the two services?
Both services offer different models that can be more or less adjusted to the particular needs of client companies. This means that within outsourcing, clients can resort to different types of services such as team extension, nearshore, or dedicated team, which may present a more suitable solution for what they need. The same applies to specialized recruitment in terms of payment model, which can be based on a success fee, a flat rate, among others.
Thus, it's important to start by understanding your particular needs (whether it's occasional recruitment over time or something more recurring), the type of structure you want to have (whether you're looking to expand your structure by hiring professionals directly or keep it leaner by using consultants), the type of culture you have and whether it aligns with that of the provider, and how much you have to invest in this service.
If you only need access to the market knowledge of the outsourcing company and its ability to quickly find highly qualified professionals, perhaps a one-time specialized recruitment service is the ideal solution. However, if you want a model that gives you more flexibility and frees your company from hiring-related burdens, an outsourcing service will be the best option.
There are also companies that offer both services, so you can start by developing a close relationship with the provider through a specialized recruitment service and then evolve into outsourcing. In these situations, it may be beneficial to speak with someone focused on client relations who can present both options and analyze with you the best solution for your particular situation.
As we've seen throughout this article, these services offer tools that companies can use to innovate and grow while navigating the challenges of an increasingly competitive and unstable market. However, it's important to take some precautions when selecting a partner company, since much of the success in these types of partnerships relies on good alignment of expectations and values, good communication, transparency, and thorough market research.
If these services seem like the ideal solution for your company, learn more about how we can help you grow your team and your project here.
