In the fast-paced and ever-changing IT industry, companies need to keep up with the latest advancements to remain competitive. One way they can do this is by hiring contract workers. Contract workers are individuals who are hired for a specific period to complete a project or provide a service. In recent years, the use of contract workers in the IT industry has become increasingly popular. Let’s explore the advantages of using contract workers in IT fields.
1. Access to specialized skills
The most significant advantage of using contract workers in IT fields is that it provides access to a wider range of specialized skills and expertise. Companies can hire contract workers with specific skills and experience to work on particular projects or tasks, without having to commit to a long-term employment relationship. As mentioned in this article from Focus GTS, hiring contractors with the right skillset allows companies to tap into a broader talent pool and find the best fit for their project needs. According to a report by CompTIA, a leading technology association, 72% of companies that use contract workers do so to gain access to specialized skills. For instance, a healthcare organization needed to update its IT infrastructure to comply with the new regulations. The organization hired a contract worker who was experienced in healthcare IT compliance and had specific skills in implementing electronic health records (EHRs). The contractor was able to complete the project efficiently and effectively, saving the organization time and money.
IT contract workers offer unparalleled flexibility for businesses, enabling them to swiftly adapt their workforce according to project needs. Companies can hire contract workers for short-term projects or longer-term engagements, depending on their needs. This allows businesses to scale their workforce up or down quickly and easily, without having to go through the lengthy and often complex process of hiring full-time employees. As noted in this article from CIO, contract IT is becoming an increasingly popular solution for businesses looking to fill a talent gap quickly. According to a survey by Deloitte, 94% of companies that use contract workers cite the ability to quickly scale up or down as a key advantage. For example, a software development company needed to complete a project within a tight deadline. They hired contract workers with specialized skills in software development, who were able to complete the project quickly and efficiently, allowing the company to meet the deadline and avoid hiring additional full-time employees.
3. Cost savings
Using contract workers in IT fields can also be a cost-effective way for businesses to meet their staffing needs. Companies can hire contract workers with specialized skills and experience to work on specific projects or tasks, without having to commit to a long-term employment relationship. By hiring a contract worker with specific skills, businesses can tap into a broader talent pool and find the best fit for their project needs, as noted in this article from Focus GTS. Additionally, businesses do not have to pay for training or other employee-related expenses for contract workers, which can also reduce costs. For instance, a cybersecurity company needed to hire a specialist to conduct a penetration test. By hiring a contract worker with specific skills in cybersecurity, the company was able to save money on benefits and payroll taxes while getting the job done by a qualified specialist. The cost savings and flexibility of hiring contract workers can be especially beneficial for small businesses or startups with limited resources. A report by the Society for Human Resource Management found that 20% of companies that use contract workers do so to save money on benefits and payroll taxes.
4. Reduced administrative burden
Hiring full-time employees can be a time-consuming and complex process, involving job postings, candidate screening, interviewing, and onboarding. By using contract workers, businesses can avoid much of this administrative burden. Contract workers typically handle their own paperwork and tax reporting, which can free up time and resources for businesses. A report by Ardent Partners found that 40% of companies that use contract workers do so to reduce administrative burden.
5. Increased productivity
Contract workers in IT fields often have a high level of expertise and experience, which can lead to increased productivity. These workers are often able to complete tasks more efficiently and effectively than full-time employees, who may not have the same level of expertise. This can help businesses to complete projects on time and within budget. According to a survey by Robert Half, a global staffing firm, 62% of IT executives believe that contract workers are more productive than full-time employees.
6. Option to hire
Contracting lets people and employers “test the waters” before committing to something. After a few months, you might want to make things permanent. This also allows for better positioning to hire contractors fulltime at the best possible salary. A report by Focus GTS, a staffing and recruiting firm, found that 50% of contract-to-hire placements become permanent hires.
Overall, the use of contract workers in IT fields can provide significant benefits to businesses, including access to specialized skills, flexibility, cost savings, reduced administrative burden, increased productivity, and the option to hire. With the growing popularity of contract workers in the industry, it is clear that this trend is here to stay.
For those of you who have been reading our recent blog posts you know what time it is….. SHAMELESS PLUG TIME! Hiring managers – you may not have the time or resources to search for and evaluate individual contractors, which is where staffing agencies, like Pira Consulting, can be helpful. Staffing agencies and recruiting firms often have access to a large pool of qualified candidates and can assist with the recruitment process, including screening, skill tests, interviewing, and background checks. We can also help with negotiating contracts and setting pay rates, which can further streamline the hiring process.
Are you a tech worker wondering what the benefits of contract work are for you? Stay tuned! We will be looking at this issue from your viewpoint in an upcoming article.