On Digital Transformation and AI Sailor
17.02.2025
3 min.
21.10.2024
3 min.
For many people, the technology sector is no longer a fairy-tale industry with luxury benefits and the opportunity to bring innovation to the market. We will reveal how IT companies can protect both staff interests and business objectives.
Alessandra chose a career in technology because her employer’s headquarters in London enchanted her. IT companies used to be known for work cultures that offered six-figure salaries, superior benefits, state-of-the-art offices and the opportunity to bring innovation to the market.
When the economy weakened in 2022, rising inflation and interest rates limited the companies’ growth. This led to industry-wide layoffs that continue to this day, and in some cases, company executives cut back on remote work. For many, the technology sector has lost its glamour as a result.
Today, companies are cutting costs to balance investments in AI. The question is whether they will find an ethical balance supporting innovation and their employees. The strategies that have helped technology companies succeed are no longer working. In the last 20 years, 52% of Fortune 500 companies have disappeared. At the same time, 139,534 IT positions at 457 companies have disappeared this year as of October 11.
Furthermore, the employees the companies have retained have to take on additional responsibilities as many of them have frozen hiring. As a result, they are at risk of reduced job satisfaction or burnout.
‘After seeing so many close colleagues suddenly become redundant or leave as a result, we have lost faith in what we are trying to achieve,’ says Alessandra. ‘Most of us are planning an exit strategy from the company – and some even from the industry.’
The solution to the dilemma posed by the hiring freeze could be outsourcing. Hiring IT talent not only allows companies to save costs but also to offload the workforce, focus on core competencies, increase efficiency, improve service quality and protect long-term goals. The key to success in this new era will be a balanced approach that aligns the strengths of both internal and external workforces. It will give organisations the potential for coherence, innovation and agility.
Are you interested in IT talent outsourcing? Find out how your company can benefit from flexible collaboration with extra muscles:
What Is IT Outsourcing And How Can It Help Your Project?
How to Choose the Right Outsourcing Partner
What to Expect In Outsourcing IT Specialists in 2024
If you are also considering reducing your company’s budget, you can find all the useful information about outsourcing IT specialists here.
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