Why Hiring Contractors is Your Secret (Agile) Weapon

Struggling with your digital transformation efforts? Maybe you're just super worried about having to explain to your board members why your substantial investments haven't quite delivered those promised results? (It could very well be both.) Fear not, you aren't the only one!

Tech Research Asia recently surveyed hundreds of New Zealand and Australian CXOs and found almost 90% are running an IT modernisation program that's over time and budget. A major driving force is the pesky and persistent shortage of tech candidates with specialised skills.

But there is a potential solution that could be your secret tech recruitment weapon, namely, to hire IT contractors. 

Before you say, "Why hire a contractor instead of a full-time employee, especially in these economic times?", hear us out. We've got some key reasons why hiring contractors in the current market makes perfect business sense. 

Make Quality Hires, Faster

It takes an average of three to six months to properly onboard a new permanent employee. If you're in the middle of agile project transitions or a significant strategic drive, you don't have this time luxury. 

But it's something you don't need to worry about if you hire IT contractors, particularly those with highly specialised skills. As experts in their domain, they hit the ground running and are productive from the get-go. Most can start anywhere, from one day to within two weeks. Moreover, their insights can accelerate team progress toward strategic goals.

As for quality, a good tech recruiter has a cache of thoroughly vetted contractors for you to consider. You have control over hiring for the specific skill set you require - nothing more, nothing less. 

Better Budgeting 

In many cases, hiring IT contractors is more cost-effective than employing full-time staff. It's probably one of the reasons why contractors are so popular here in New Zealand, with one in twenty employed on this basis.

While contractors typically charge higher hourly rates, you save on the costs associated with benefits, taxes and overheads that come with full-time employment. It can result in lower overall expenditure, especially for short-term projects or specialised tasks where the contractor's specific expertise is needed for a limited period. 

You also have the flexibility to scale your workforce based on project demands. If you're experiencing lean times and have had to reduce your permanent staff headcount, this is especially helpful. You can still pursue those ambitious and growth-focused projects without the long-term financial commitment of full-time hires. 

Employing contractors also means you can access top-tier professionals as and when you need them. You'll gain an advantage in a recruiting climate where top candidates are still snapped up quickly, often before they're officially available! 

Career contractors (those who've chosen contracting as their primary career path) are especially valuable. They might not come cheap, but their extensive experience allows them to quickly integrate into your projects and deliver solutions immediately, and potentially offering your business multiple returns on investment in a much shorter timeframe than a permanent employee. 

Enjoy the Benefits of Opex Hiring 

Operational expenditures (Opex) cover your day-to-day expenses, such as salaries, rent, utilities etc., as opposed to capital expenditures (Capex) which is what you spend to acquire, upgrade and maintain physical business assets. 

Another financial advantage of hiring contractors is that you can categorise them as  Opex instead of Capex, as they're technically recurring expenses. Contractors directly support your operational needs without necessitating large upfront investments (like Capex does).

This offers significant benefits, particularly in a volatile economy, as Opex may provide tax deductions and can improve your company's cash flow. Using contractors as an Opex can enhance your agility and responsiveness to market changes.

Keep Project Risks at Bay 

The strategic use of contractors not only supports timely and effective project completion but also aligns with best practices found in contemporary business environments.

If you hire IT contractors, you'll always have the right people at the right time, which is crucial for de-risking projects and ensuring successful execution. You can address specific needs and challenges as they arise, without the delays associated with recruiting and training permanent staff. It's a flexible approach with an agile project management mindset at its core. 

Supercharge IP 

Your IP is the lifeline of your IT business. It's essential you identify any gaps in this area to not only safeguard your innovations and avoid legal disputes but also to enhance your strategic positioning in the market. 

Specialised contractors bring a fresh perspective to your business which can significantly aid in spotting IP gaps, alongside inefficiencies that internal teams might miss. 

Contractors can also give you an objective analysis, free from internal politics or constraints around existing workflows. As they're familiar with the latest industry standards and best practices, they can accurately benchmark your current IP practices and identify areas for improvement.

Support With Finding the IT Contractors You Need

When you decide to hire IT contractors, you'll reap three-fold rewards of flexibility, scalability and cost efficiency. Knowing how to answer the question, 'Why hire a contractor over a permanent IT employee for transformation?' enables you to make better business decisions.  

At Digital Garage, sourcing specialised IT contractors is a core part of our recruitment services as a dev, product and data specialist agency in New Zealand. Send us a message or jump on a call with us to find out more about how we can support you in building a flexible IT workforce that suits your unique needs.