Why do companies outsource recruitment processes, especially for tech talent, instead of handling them internally? 

COVID-19 and digitalization have made the recruitment landscape undergo a dramatic transformation. Traditional methods of finding top-tier developers have grown cumbersome and sluggish, prompting businesses to reevaluate their hiring strategies.

In other words, companies are now facing increased pressure to adapt quickly and efficiently, leading many to seek more agile and innovative approaches to sourcing tech talent. 

What Is Recruitment Outsourcing?

Recruitment outsourcing, also known as staffing services or talent acquisition services, involves entrusting third-party vendors with all or part of the hiring process. These agencies will leverage their expertise and extensive networks to identify potential candidates, conduct initial screenings, and manage interviews, ensuring that businesses find the right fit for their needs. 

Depending on requirements, businesses usually select among four common types of recruitment services:

Why Do Companies Outsource Recruitment for Tech Talent: Top 4 Reasons 

1. Access To a Larger Tech Talent Pool 

One of the biggest issues when it comes to hiring skilled tech talent is the lack of potential candidates. Countries like Singapore are plagued with a severe shortage of developers, making it extremely difficult for companies to fill tech positions—a process that often takes several months.

Recruitment outsourcing firms can help address this issue due to their extensive and curated network of developers, especially those overseas. These vendors maintain databases of a diverse pool of tech candidates, including passive job seekers who may not be actively looking but are open to new job opportunities. Thus, they allow firms to tap into tech talent pools not accessible through traditional hiring methods.

2. Cost Efficiency

Let's face it—hiring is expensive, especially for startups and SMEs. The costs associated with recruitment go beyond just paying the salary. Sourcing, screening, interviewing, and onboarding candidates require significant time and resources, especially for tech talent. 

By relying on a trusted recruitment partner to manage part or all of the hiring process, firms can secure skilled developers much faster without the need to expand their internal HR teams. Additionally, recruitment agencies offer specialized expertise and industry insights, enabling them to conduct targeted searches and comprehensive screening processes. 

Through careful candidate selection, these agencies not only increase success rates of hiring but also lower turnover rates, ultimately resulting in substantial cost savings for companies.

3. Streamlined The Hiring Process 

Hiring tech experts can be a lengthy process, as it requires significant time and resources to find, interview, and onboard the candidates. In some cases, the process can take an average of 38 days and up to several months.

More importantly, developers are passive job seekers who require a much more personalized approach to secure them. Recruiters will need to maintain close contact with the candidates and build strong relationships with them. For startups and SMEs, it can be very taxing for their in-house HR departments. 

On the other hand, recruitment firms excel in locating qualified candidates through their extensive networks and specialized industry knowledge. They are adept at evaluating candidates against specific criteria and employing effective approaches to attract top developers, thereby making the hiring process much faster and more successful.

4. Flexibility And Scalability

Businesses can adjust their hiring needs through outsourced recruitment, as they do not have to worry about the burden of hiring additional recruiters. This is especially beneficial for companies that are growing rapidly and experiencing fluctuating demands for tech talent. 

Outsourcing also allows firms to access tech talent pools across various regions without investing heavily in sourcing, conducting interviews, or managing onboarding processes. Therefore, companies can scale their tech team much more easily, hiring as many skilled developers as required without being limited by their internal HR capabilities.

Selecting A Recruitment Outsourcing Partner

Now that we've addressed the question of "Why do companies outsource recruitment," the next step is to explore the important factors to consider when selecting a service provider:

1. Capabilities and Expertise

Ensure that the agency specializes in hiring developers and deeply understands the unique challenges associated with recruiting for these specific tech roles. For instance, if you are looking to hire IT professionals in Vietnam, opt for a trusted partner who specializes in tech hiring within the country and can guide you through the entire process effectively. 

It is also essential to thoroughly assess their capabilities, from being able to handle specific recruitment tasks such as screening and sourcing, to providing full end-to-end recruitment services and supporting future scalability needs.

2. Pricing Model

Choosing the best vendor requires a clear understanding of how their pricing model aligns with your budget and hiring goals. Companies may prefer a more straightforward payment structure, such as flat fees per successful hire or commissions based on hires. 

Moreover, it's crucial to inquire about any potential hidden costs, such as fees for additional candidate searches or extra services not included in the initial quote. This diligence ensures that you choose the ideal recruitment partner who not only possesses the capability to consistently deliver excellent results but also effectively aligns with your budgetary objectives.

3. Proven Track Record

By reviewing past performance, including successful placements, client testimonials, and retention rates of placed candidates, businesses gain insights into the vendor's ability to meet expectations and deliver quality tech talent.

Moreover, understanding the vendor's track record ensures alignment with company values and culture, fostering long-term partnerships that contribute to sustained business growth and success.

If you are interested in hiring developers in Vietnam, we highly recommend selecting trusted recruitment providers that are licensed by the Vietnamese government for staffing and recruiting, such as Talent JDI.

More Insights: Leading IT Recruitment Companies In Vietnam

Conclusion

When businesses ask, 'Why do companies outsource recruitment for tech talent?', it often signals a need for a more effective strategy to secure skilled developers. Partnering with a trusted recruitment service provider can allow them to access a larger pool of tech talent, streamline the recruitment process, improve cost efficiency, and shorten hiring timelines.

Moreover, companies can easily hire offshore developers and establish dedicated tech teams abroad by leveraging the network and expertise of these vendors. A notable example is Shopback, the leading cashback reward program available across ASIA, which successfully set up its development center in Vietnam with the support of Talent JDI. You can explore their story further here!

Find an experienced partner to leverage your hiring process: Top 3 Reasons To Build Tech Team In Vietnam