Is it time for the out-staffing model in the IT Services Industry to explode?
When we approach an IT Services Company with a customer requirement, it is natural for them to ask for the project requirements but the moment we say the customer is looking for the out-staffed resources then they ask for a Job description. We have a difficulty here, let me explain. When you visit Amazon and […]
When we approach an IT Services Company with a customer requirement, it is natural for them to ask for the project requirements but the moment we say the customer is looking for the out-staffed resources then they ask for a Job description. We have a difficulty here, let me explain.
When you visit Amazon and search for a product, use filters to find a specific product, add it to the cart, and made the payment. The product is shipped to you in a couple of days. We at aumnics did the same to hire software teams. Our customers see the same steps while hiring global talent at aumnics, just like the products on Amazon are sold by other companies, software teams on aumnics are also published by other companies. Individuals or freelancers cannot publish themselves on aumnics. So, if you are an IT Services company and you want new customers all you need to do is publish your team on aumnics and global customers pay and hire them. It’s simple.
It is considered that business between 2 companies is a bit complex. Traditionally, the sales teams of IT Services companies reach out to the potential customers, then the customers check the company background, financials, promoter background, sign agreements, and the service provider starts providing resources to the customer but every resource is interviewed by the customer and hires only if the customer like the candidate. This process was okay for the manufacturing industry where modern equipment is expensive and the success of any partnership was dependent on the company’s financial capacity and other factors.
It is also okay for IT Services Industry 2 decades back because office space was expensive, the Internet connection was expensive, computers, servers, routers, firewalls were all expensive and an individual could not afford all of these. So checking for companies who have such infrastructure and connectivity was essential. But now times have changed every individual in the home has a smartphone, iPad, laptop, and in some cases a desktop, high-speed Internet is as cheaper as it can be, and hosting is cheaper. Now that every individual can afford all these suddenly the need to check for infrastructure is no more needed. what really matters these days are the skilled manpower and that’s the only differentiator.
Now some people may argue when an individual has everything and he has skills why cannot he offer himself to companies and directly get paid by customers? Where is the need to hire from companies? Well, this means you are asking every individual to take the risk and be a semi-entrepreneur. There are 2 types of humans those who want certainty in life and those who are okay with uncertainty. Entrepreneurs thrive by making use of uncertainty but job seekers do not want to take that risk, they need a monthly fixed income so they do not have stress and can safely pay home, car, and other loans and enjoy their life. Aumnics is created to strengthen the entrepreneurs who have already taken the risk. We want to make their life simple by enabling them instead of asking an employee to take the risk and become a semi-entrepreneur/freelancer but this is half the story.
The other half is related to human nature. If you see the evolution of man we came from jungles where the mighty was the winner to form a society and civilization based on the common good. the concept of organization is the output of thousands of years of human evolution. Let’s look at why everyone trusts an organization than an individual? It’s because an individual is alone and the organization is a team. There is someone responsible to oversee the work is done properly in case the individual fails the support system kicks in and helps the individual to complete the work. In short, reliability is the answer.
So we can safely assume that apart from expensive infrastructure, expensive connectivity, servers, etc that a company can afford, customers were approaching companies for reliability as well. Now it’s a fact that an individual can afford everything else but how can individual earn reliability? If we look a little deeper not just reliability but governments around the world are coming up with regulations to safeguard the interests of individuals by asking customers to ensure employee benefits to freelancers. This is a huge risk to the customer. Hence hiring consultants from other companies makes perfect sense.
Efficiency and simplicity are what are revolutionizing every industry via various marketplace models. Why should IT Services Industry still follow the 2 decades-old- template and do business? Isn’t it time to make IT Services Business as simple as eCommerce, where customers from around the world can simply hire teams from other companies? If the answer is yes then the time for the out-staffing model has come. Talent will be the only differentiator for companies to survive. Hire smart talent and invest in upskilling your existing talent is the only way to ride this new wave of the out-staffing explosion that is happening as we talk.
Visit appointments.aumnics.ai and book your product demo and we will show you how IT Services companies are winning new global customers from aumnics.
Written byKiran Teegala