Comprehensive Guide to outsourcing- Part 1 Direct Hiring

The software industry has been exponentially growing throughout the last 30 years. It’s quite hard to underestimate the consequences of this expansion. There are sectors of the economy totally disrupted by the introduction of new technologies and new pieces of software. Let’s take a look at the taxi business: after Uber and Lyft it’s never going to be the same again.

Even companies that are, at the first glance, not related to IT at all, usually do some software development. Maintaining an online store, or even a simple website, or even launching a proper marketing campaign does require technical expertise these days. Things to be done right and within a timely manner, the level of such expertise needs to be as high as the one of a traditional software company. To keep it simple: everyone needs developers, which is why they have become a scarce resource.

Intensified competition for employees results in increased wages and quick-to-resign culture among technical specialists. Under increased pressure businesses have figured out a number of ways to overcome this. The first one we are going to look at within this series of articles is direct hiring.

Indeed, within the last 15 years, the direct connection between job-seeking developers and their potential employers has been getting easier and easier. Remote OK and Stack Overflow Careers are among the most successful platforms facilitating this process. In fact, such “hiring” is not full employment, but rather a short-term contract between the employer and the technical specialist. WaveAccess, based on its 20+ years of experience can point out 3 major disadvantages of such cooperation.

First - each individually hired employee requires an individual contract, which normally means a lot of negotiating around small details. For example, subject to such a negotiation can normally be national holidays of a specific remote worker, health insurance coverage or maternity leave. There might also be difficulties with individual salary conditions, especially when international money transfers are involved. The reason is political sanctions and overall international concern with money-laundering schemes.

Second - this results in a much harder assessment and recruitment process. Assessing the technical expertise of a potential employee might be tough even for highly qualified professionals. Not to mention people without any strong technical background, for whom such hiring turns out to be a game of chance. Indeed, there are common recruitment techniques that can be utilized to reduce the risks like checking references, certifications and degrees, but the risk is still high.

Third - reliability issue. Sadly, cases when an employee simply disappears in the middle of a very complex project are not unheard of. The reason can be a better job offer or even a random change in the political climate in their part of the world. Indeed, when an employee has never met their employer in person it is much easier to change jobs because no personal link has been established.?

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