The IT Drama – Contractors to the Rescue!

B2B Development Teams and Freelancers or Contractors are shaping up to be the solution to a lot of IT projects...
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Over the past year and a half, we’ve all been part of the biggest plot twist in the global IT market. Layoffs, hiring freezes, a surplus of software developers, and widespread struggles have turned the industry into a suspense thriller, affecting everyone regardless of their role. We knew the IT boom wouldn’t last forever, but many of us hoped the golden era would continue just a bit longer—developers especially.

Well, maybe not more than recruiters…

Unfortunately, this is our reality, and we’re all navigating through these challenging times. Many people have lost their jobs and are finding it difficult to secure new positions, while numerous companies are struggling to stay afloat. Startups are desperately pitching for investments, others are cutting costs, restructuring, and doing their best to optimize day-to-day operations amid these challenging circumstances.

The dynamics of the market have shifted. With an abundance of developers seeking employment, employers are now calling the shots. Many companies are still not hiring, but a growing strategic decision is to hire contractors instead of in-house developers.

In these uncertain times, this trend is not surprising, and here’s why:

Cost Efficiency

When you hire in-house developers, you’re not just paying their salaries; you also need to account for benefits, taxes, office space, equipment, and other overhead costs. Contractors, on the other hand, typically work remotely and cover their own expenses, allowing companies to save significantly. This cost-saving aspect is particularly attractive in an economy where businesses are looking to tighten their budgets without compromising on quality.

Flexibility and Scalability

Companies can scale their teams up or down based on project requirements without the long-term commitment associated with full-time employees. This flexibility is crucial in an unpredictable economy where the demand for specific skills can fluctuate. Businesses can quickly adapt to market changes, ensuring they have the right talent for the right projects at the right time.

Faster Time to Market

Contractors can often start working on projects immediately, reducing the lead time associated with the recruitment and onboarding of full-time employees. This speed is critical in today’s fast-paced economy, where being first to market can make a significant difference.

Reduced Risk and Commitment

In uncertain economic times, committing to long-term employment can be risky. Contractors offer a low-risk alternative, as companies can engage them on a project-by-project basis. If the economic situation changes or the project scope adjusts, companies can easily end or modify the contract with minimal repercussions.

At Ambacia (ft. LuminaryIT), we can provide you with even more compelling reasons to hire, not just contractors, but contractors or even entire development teams from Croatia and the SEE region. We’ll share all the juicy details in another blog post. Just a little hint: think fruitful partnerships and reliability.

Stay tuned!