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The shift in IT near/offshoring: from cost reduction to talent acquisition

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In the current economy, the outsourcing driver is no longer cost reduction, but finding the best people. This is especially true in countries like The Netherlands where senior-level resources are hard to find. Organizations are looking for highly skilled and experienced IT professionals who can help them stay competitive in a rapidly changing market.



An option is to look for these senior-level resources abroad, but organizations should be careful in contracting the corporate near- and offshoring powerhouses. These companies still operate in the business model based on achieving cost-savings for their clients and therefore attract young inexperienced employees; they have mostly juniors and medior-level resources on board. Those resources are then further educated by working on the projects of Western clients. However, these people who work at these offshoring companies often follow the same career path as in The Netherlands. They start their career at a large company, but once they become senior, they also choose to either become independent contractors or move to smaller, more specialized companies. This is why, if organizations are looking for good foreign seniors, they should search in the community of contractors and SMBs in those foreign countries as well.


Instead of focusing on cost-saving measures, organizations should focus on finding the best person for the job. This includes looking beyond the traditional corporate structures and seeking out the global community of independent contractors and SMBs, who have unlimited senior talent. Furthermore, organizations should also be prepared to pay competitive rates that reflect the skill-level and experience of the individual, regardless of their location. Just like gender, location is not a valid indicator of an employee's skills or performance. A highly qualified and experienced senior-level team member should be compensated based on their qualifications and performance, regardless of their location. This is key in attracting and retaining top talent, and in ensuring that the organization is able to access the best resources to drive their operations and growth.


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