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Freelancers or Consultants from IT Services Companies?

Freelancers or Consultants from IT Services Companies? The IT Services Industry is highly competitive. Software talent is scarce, and everyone wants to have them. Job Boards like ( Careerbuilder, Indeed ), Professional Networking Sites Linkedin, and Freelance networks ( upwork, Toptal ) serve as data sources for Staffing agencies and employers.  A little over 2 decades […]

Freelancers or Consultants from IT Services Companies?

The IT Services Industry is highly competitive. Software talent is scarce, and everyone wants to have them. Job Boards like ( Careerbuilder, Indeed ), Professional Networking Sites Linkedin, and Freelance networks ( upwork, Toptal ) serve as data sources for Staffing agencies and employers. 

A little over 2 decades ago, when the job data was not online, job boards took on a humongous task on their shoulders to bring the job data online, and it’s the first revolution in the hiring Industry. Staffing agencies have taken advantage of this new digital avenue and started to thrive, taking advantage of the non-transparent and inefficient job industry. 

Professional Networking sites were built to connect people but eventually changed the revenue model and came into the lap of the hiring industry. Freelance networks can be considered the second revolution in the hiring industry as they took the journey from job/resume search to getting the work done remotely and paying online. 

The experience with these freelance networks feels like they have created a global citizen model where the job seeker is an individual and companies outsource their project requirements and allow them to work remotely. 

Regulations in the US and other countries are changing the freelancer model as they are insisting employee benefits be given to these freelancers. Then companies will find it attractive to hire consultants from other IT Service companies to skip the burden of these regulations then the onus of employee benefits will be on its employer and the companies can only pay for the hours worked by such consultants. 

Apart from this issue, there are other issues plaguing the freelancer model, here are a few such issues concerning the reliable way to work with the resource hired:

Problems with hiring freelancers:

  1. Freelancers work alone. In times of difficulty, for example, wrong planning may delay the delivery of work. When such issues arise freelancers cancel the project and disappear, they end up wasting the time of the hiring company. 
  2. Most freelancers have a full-time job and still register on freelance networks for additional part-time income. Such people work during nights and extra hours, which affects their overall quality of work.
  3. Freelance networks are ideally designed for Individuals, and companies are trying to use these networks to generate leads by creating fake profiles, for example, a 20-person company creates 500 profiles on these freelance networks to generate customer inquiries.
  4. Most freelancers feel insecure due to gaps in their regular income when they do not get new projects immediately after completing the existing one forcing the freelancers to look for a full-time job but continue to remain on these networks for part-time income. 
  5. Project timelines are dragged between 40% to 60% due to gaps in understanding the scope of the project requirements creating huge disappointments between the freelancer and the company that outsource the work. 

Companies outsourcing the projects usually hire software development teams as consultants from other IT Services Companies in the real world. Wouldn’t it be great to replicate the same model online? Hiring Software teams as consultants from IT Services Companies is more reliable than hiring freelancers.

Instead of freelancers, if companies start to hire from other IT Services Companies then all these problems are addressed ideally. Remote hiring and Remote work are here to stay. Thanks to the recent pandemic, which forced the whole world to shut its offices and give 100% work from home for over two years. This once-in-a-century pandemic has forcibly changed work attitudes, habits, perceptions, and remote work is now a reality for every company and employee. The change that was supposed to happen in the next ten years has taken place in just two years. It looks like a blessing in disguise.

Reliability clubbed with efficiency for remote and hybrid work is the need of the hour. HR tech is now becoming Worktech. This remote hiring and remote work model without any compromise in the quality of work both for the employees and to efficiently manage employees is considered the third revolution in the hiring industry.

The third hiring revolution seems to be clubbing collaboration, calendaring, and hiring. These new capabilities help add efficiency to every company in managing the attendance, working hours, leaves, after hiring induction, and employee relieving process. The integrated apps bring employee productivity. 

For the first time, companies seem to be ready for this change which otherwise used to take a long time for adoption.

We saw the importance of remote tools like google meet for online meetings and google ecosystem for work, Microsoft Teams, and many more tools that came in very handy when the world needed these tools for remote work. 

Thanks to these companies who filled the gaps and allowed humanity to work with free tools. Employees, companies, students, and every other working person would have suffered in the absence of these tools. It’s now our turn to bring innovation and change as startups and small-medium companies. We have taken the lead in this direction with our product aumnics.ai, request you to be a part of this new revolution and change the future of the next decade for the global hiring and work industry.

We are trying to deliver an integrated b2b marketplace for the IT Services Industry on a platter with free tools to hire and work. IT Services companies can now win new global customers ($ paying customers) just by listing their resources on aumnics.ai, our interviewers vet these candidates and publish the qualified teams for global customers to hire. As UBER is for ride-hailing, AIRBNB is for stay booking, aumnics is a b2b marketplace for IT Services Industry helping our global customers hire software development teams as consultants from IT Agencies around the world.

Feel free to sign up on aumnics.ai and give me your feedback. I will be happy to hear your ideas and promise to act on the feedback and ideas you share. You can comment below, and I will check them and respond. Thank you.

Written by

Kiran Teegala