Talent Network – is it worth outsourcing IT projects?

Corporate Talent Networks are becoming an increasingly popular solution in the IT industry. They not only allow companies to acquire top talent but also enable the outsourcing of specific projects to external specialists. This approach seems to offer as many benefits as it does challenges. Why is outsourcing projects to a Talent Network so popular? What should you pay attention to when delegating projects to external talent?    

Talent Network – what is it and how does it relate to outsourcing?

  Talent Network is a commonly used practice in the IT industry. This term refers to a network of talent—a group of people possessing knowledge and skills that are valuable from a specific company’s perspective. This solution can be compared to a football academy; just as a football club trains talented juniors, an organization can gather potential employees in one place. A Talent Network can take various forms. Most often, it functions similarly to social media, taking the shape of a specialized portal that anyone can join.Effective Talent Networks often offer participants various types of benefits, such as training, webinars, or job offers not available on the general market. In this way, a company can build its reputation and acquire the best candidates when the need arises. The importance of Talent Networks may grow even further in the coming years—according to a report by Manpower, 75% of Polish technology and IT companies struggle to find suitable candidates for work. In such a situation, creating your own talent network, where you can gather information about potential employees and their knowledge and competencies, can be a beneficial solution. A Talent Network can also be an effective tool in outsourcing, which is the practice of delegating tasks or projects to external entities. In this scenario, a company with a Talent Network can publish assignments through it to its members or search for suitable individuals among a vetted group of specialists and propose specific tasks to them. If the results of the assignment are satisfactory, there is nothing stopping the company from hiring those individuals permanently. This allows for financial balance and reduces operating costs, while giving members of the talent network a chance to demonstrate their skills.

What does outsourcing allow you to do?

Outsourcing projects to a Talent Network can be beneficial for a company, but it comes with noticeable difficulties. First and foremost, however, it allows you to collaborate with highly qualified specialists from various fields, which can increase the chances of project success. Additionally, external experts can bring diverse experiences to the project, which can improve its innovation. Outsourcing is often associated with lower costs and allows for scaling resources as needed. Freelancers available in a Talent Network usually work remotely and only for the duration of the project, so the company does not have to bear costs resulting from, for example, employment contract terms. After the project is completed, the company may, but is not required to, continue using the freelancer’s services, which can translate into lower operating costs. A Talent Network allows organizations to focus on key areas of their business, but it comes with certain significant limitations. The most common include:

• Coordinating work with a team from a Talent Network may require additional efforts in communication and management.
• If the project involves confidential information or data, it is worth paying attention to their security.
• Specialist portfolios may not fully reflect their skills, so they should be verified before assigning a project.

It is also important to collect feedback and references from other clients to assess the quality of services provided by participants in the Talent Network. This will make selecting the right candidates faster and more effective.

What can be outsourced?

Many different fields and tasks can be outsourced. A common practice is software development outsourcing—tasks related to design, programming, testing, and implementation are entrusted to external companies or specialists. It is equally common to outsource helpdesk support to external entities. In addition, processes such as the following are often outsourced:

• graphic design and user experience (UX) development,
• marketing and advertising,
• accounting and financial services,
• customer service,
• testing and quality assurance,
• data analysis and business intelligence.

In practice, however, almost any process used in a company can be outsourced. This can also be done with material resources such as servers or databases. This reduces the company’s operating costs and often provides access to the latest technological achievements, such as cloud technologies. Many of the tasks mentioned above can be outsourced to a Talent Network. Before taking such steps, it is necessary to precisely define the criteria for selecting candidates. Beyond a general check of experience and technical competencies, it is also worth evaluating their soft skills, financial requirements, and education.

Outsourcing in IT – why is it so popular?

Outsourcing in IT is popular for many reasons. Due to its nature (the universality of technology, operating in programming languages, etc.), this industry is transnational. Companies operating in one country can easily collaborate with specialists from another, adjusting employment terms to local requirements. Outsourcing also provides access to talent from around the world, which allows a company to expand its Talent Network beyond its own area of operation. The popularity of IT outsourcing also stems from extended working hours—utilizing the skills of specialists from around the world allows a company to work literally around the clock. One of the main factors in the popularity of IT outsourcing is cost savings. External outsourcing companies often operate in countries with lower labor costs, so a company using outsourcing does not have to bear the costs of salaries, benefits, or office infrastructure. This also ensures flexibility and scalability in operations and allows resources to be adjusted to market conditions. However, it should be remembered that IT outsourcing also has its challenges, such as managing remote teams, communication, and data security. Despite these, it remains an attractive way to acquire talent and complete projects faster, and there is little indication that this will change.