OutStaff: What should companies prepare for?

According to a recent survey between outstaff companies, 45% of respondents experienced a decline in turnover, profit, and customers in February compared to the period of November-December 2022. What measures should companies take to prepare and address this situation?

Here’s what I’ve been seeing in this industry and the market in general over the past few months.

💼 Abbreviations

Top tech companies laid off over 150,000 employees in January-February. Some think these developers have found jobs with other companies within six weeks. I’m happy, but… We’re not discussing programmers right now. All these events are a news occasion, an unpleasant smell for investors, including clients of IT outsourcing companies.

🧾 Difficulties with orders not only for you

Our IT community shares that new orders tend to be small and often fall off quickly. Old customers continue to reduce their “capacity”.

Here is what polls among our colleagues show:

• 📉 43% report a worsening situation;
• 📈 20% talk about improvement;
• 🔄 37% - no change (or didn’t notice).

💸 The rebalancing of the salaries of IT specialists is coming (already started?)

Do you agree that now, programmer salaries are quite inflated in the recruiting race over the past active years? 

Interesting… Clients who outsource their development work consider such simple factors as price, expertise, and reliability when selecting a location. However, global instability has led to decreased reliability, making expertise and price more important. And we all know what the outstaff sins with (- Let’s sell the junior as a senior? - Great idea!). So, therefore, paying the same rates as before is no longer a wise option for outstaff customers.

In the market, we see the first cases of massive salary revisions, sometimes at the initiative of the employees themselves. Companies simply can no longer sell developer services.

✂ They are starting to cut the bench

Despite the challenging situation, a few companies have shown slight growth. There has been a slight increase in job openings and recruiter activity since December. However, employees may find lower salaries in the current market. As my colleague has written..

As a result…Red Market – Competition on Upwork is going through the roof.

What to do?

As in any crisis:

• Your reputation will save you, not money 😎
• Dedicated key employees will save you, not cheap ones 🧐
• Change will save you, not conservatism 🤠

In summary

While the current situation presents challenges for businesses, it’s essential to stay positive and proactive. By building strong customer relationships, retaining key personnel, and adapting to changing circumstances, companies can overcome these challenges. As the market evolves, businesses must be proactive in adapting to changing circumstances and take advantage of new opportunities as they arise.

#outstaffing#IT#layoffs#programmersalaries#markettrends

#salaryrevisions#employeeretention #customerrelationships #businessgrowth #businessstrategy 

#costoptimization #2023