Offshore Staffing Is Gaining Popularity Among Canadian Companies
Faced with global skills shortages, many Canadian employers have turned to offshore staffing to find and attract talent, but when asked whether that will continue to be the case over the long-term, their answer is: we don’t know.
According to a recent survey of Canadian business decision-makers commissioned by Randstad Technologies and IBM Canada, the IT staffing outlook for 2012, almost half of the survey respondents say they currently use offshoring, in contrast with approximately one-third in 2009 and 2010.
Survey results indicate offshore staffing continues to be most prevalent among large organizations and those with international operations. These companies list the reduction in cost as the primary reason for using offshoring (84%), while access to skill bases (44%) and 24/7 services (39%) are also important.
Mike Winterfield, President of the Professionals Division at Randstad Canada says global competition, pressure to do more with less, and the need for highly skilled technical resources has led employers to look at non-traditional solutions to their staffing challenges. “In recent years we’ve seen the continued spread of globalization. Managing talent is the most challenging issue facing employers and as the world becomes increasingly borderless, companies are looking to attract and retain talent on a global basis,” he says.
The most commonly cited job functions for company’s currently using offshoring include Application Development (61%), Help Desk (40%), Data/Database Management (23%) and Server Systems (19%).
Additionally, current offshoring users say they are less sure of their plans to increase their use of offshoring compared to 2010, and non-users report to be even less certain of their plans to start using off shoring at all.
Winterfield acknowledges that while offshoring can provide access to new labour and talent pools, and may generate labor cost savings, it also has its challenges. “Some of the drawbacks include reduced control over people and processes, potential loss of intellectual capital, possible cultural differences and high turnover rates. There are many cultural barriers to overcome when recruiting abroad, brand recognition has to be established and compensation structures to be understood,” says Winterfield.
But offshoring is a practice that will continue to exist across the world and as a global organization, Randstad continues to play a vital role in the offshoring domain and offers attractive opportunities in other locations, such as India.
E. Balaji, MD & CEO, Ma Foi Randstad says, “With growing talent and reduced cost models, India’s companies are today meeting global requirements of consistency, reliability and high quality performance. Global competition and pressure has put increased demand on India to constantly deliver superior services employing highly skilled technical resources along with being cost-effective. This helps the country and the industry to serve the evolving needs of clients and lead the global resourcing industry.”
Randstad Canada offers the opportunity for Canadian employers to explore offshoring solutions through its Indian counterpart MaFoi Randstad.
About the Randstad Technologies/IBM Canadian IT Staffing Outlook
The study is the third annual survey and covered over 200 top-level business decision makers, from organizations of all sizes, for information regarding IT staffing trends and projections. The study was conducted between October 4, 2011 and November 18, 2011. To obtain a copy of the full report contact your Account Manager today.
About Randstad Technologies: Sapphire Canada is the country’s largest provider of IT staffing solutions, offering permanent and contract opportunities across all roles, levels and platforms. To find out what it’s like to work with a staffing partner that really delivers, call 1.800.540.3594 or visit randstadtechnologies.ca.
About Randstad Canada: Randstad Canada is the Canadian leader for staffing, recruitment and HR Services. As the only fully integrated staffing company in the country, we understand the recruitment needs and demands of employers and job seekers across all levels and industries. Through our insightful knowledge of local markets, employment trends and global network of recruitment experts, we are shaping the Canadian world of work. Visit Canada's leading employment agency at randstad.ca
About IBM: For more on IBM please visit www.ibm.com/ca