The Truth About Project Staffing

Solving the Challenges

The Challenges

Project Staffing Resources

Vendor Management Systems
Many companies use vendor management systems (VMS) to handle their contingency labor needs. They help procurement control an ever-expanding pool of vendors while reducing complexity and cost.  And they’re especially suited to providing candidates for 90% of commonly required roles.

Efficiency. Control. Cost savings. Sounds great, right?

In reality, most VMS programs commoditize a company’s most important asset - its people.  Not only are they required to fulfill crucial business-centric IT roles, they’re responsible for everything from admins to executives.  The system restricts direct communication between hiring managers and the vendors that can deliver precisely what they need. Pay rates are often based upon factors incongruent to market conditions and skill specifics, resulting in poor fits.

This all results in the submittal of mediocre talent requiring IT hiring managers to choose between the right fit and temporary cost savings. In many cases, they're forced to either accept the risk of a project failure and it's associated costs or turn to a system integrator...

System Integrators are impressive. Armies of polished sales people pitch the latest game-changing methodologies and software.  They promise to assume full responsibility for a hugely successful delivery.  All you have to do is sign one contract giving you one throat to choke. On top of that, it’s just plain easier…there’s no HR paperwork for the IT hiring manager, funds are usually pre-approved and, even though the ultimate price tag can be shockingly high, average hourly rates look manageable.

But peek behind the curtain and a different story emerges...

There are two issues at stake here: pricing and responsibility.

What's usually being sold are "blended teams" with ratio's favoring offshore vs. onshore talent. These teams are frequently oversized and overpriced. While true that "average" hourly rates are lower than what local, independent consultants charge, SI's still achieve extremely high margins. They often do this by averaging higher-than-market onshore rates (charged for that newly minted MBA they're training on your dime) with the "lower" rates for offshore talent, but still charging rates multiple times greater than they pay. And since offshore makes up the majority of an already oversized team...well, let's just say it's a business model that's tipped in their favor.

What about this notion of "skin in the game"? Do SI's really take responsibility for a successful project? Every project requires deliverables by both the client and the SI. Often, the SI assumes responsibility for doing their part, but conditions it with the successful delivery of yours. They make you accountable, in many cases outlining your accountability in the engagement agreement. This is where the wheels can come off the rails. This is their "out". If the client, for whatever reason, doesn't deliver on their end, the SI can't be blamed. And let's not get started on the inevitable change orders. The bottom line is that some SI contracts make it easy to push the goal posts back and their responsibility is dependent upon you, the client.

So why not look at a pure offshore play?
Systems Integrators
Lower labor costs, tax benefits, 24/7 operations, a global pool of talent to draw from...what's not to like about offshoring?

Plenty, actually.

Language and communication barriers can create miscommunication.  That could lead to misunderstandings which introduces loss of control and, ultimately, the risk of project failure.

Then there are quality control issues. Even if you provide quality guidelines, the differences in working culture, language and management style may affect the quality of the deliverable.

You'll need to make time zone adjustments to work schedules. Gaps in communication times can affect the decision-making process where the time it takes to wait and get a decision can affect tasks that are time-sensitive and deadline driven. And you just can't beat the connection face to face relationships give you.

It's not about the rates, it's about how productive that contractor is going to be.

In reality, the question that should be asked is "What is the best way to reduce risk, manage cost and gain control"...

Offshore Talent
See How We Work With Our Clients
reduce risk, manage cost, gain control
Here's How GlobalSource IT is Different. . .
Reduce Risk

Projects succeed because of the people behind them, not the technology. Our consultants have the real world experience and unbiased insight to help you avoid common pitfalls. That's how we reduce risk. "A" players. Only "A" players, from mid-level to SMEs.

Manage Cost

Unclear project expectations and an unending series of change orders. Everyone's dealt with them. We deliver consultants that help you identify pitfalls before they arise by aligning your project expectations with reality. When you know what to expect, you gain control.

Gain Control

Ever get the nagging feeling that your project is taking on a life of its own and your control is slipping away? It doesn't have to be that way. Seriously. Talk to us and we'll show you how.

Get Started With GlobalSource IT Today!
Our Services
How We Work With Our Clients
Subject Matter Expert
Subject Matter Experts

Unbiased, independent and experienced. Our SME's aren't beholden to any particular technology or company. That frees them up to provide honest, actionable insight with your best interest at heart.

Project Management
Project Management

Enterprise technology projects can be a complex mosaic of shifting needs requiring deft management skills. Whether you need help running your PMO or a seasoned project manager to work with your internal team, our PM's fit the bill.

Full Project Teams

Sometimes you need a full, out-of-the-box team. A team led by a seasoned PM, supported by experienced technical and functional experts. Lean, focused and efficient.

Staff Augmentation

Envisioning an ERP project, but lack the internal talent to make it a reality? Reinforce your team and get superior outcomes from top talent without the long-term commitment.

Contract to Hire

An expedited hiring process, budget flexibility and the ability to trial-run a candidate. These are substantial benefits that also extend to the candidate. It's a win-win for everyone.

Direct Hire

When you're ready to supplement your team with the very best talent in the market, look no further. With a candidate pool tens of thousands deep, we'll find the right match, the first time.

Project Safeguard

We'll help set you up for success with checks and balances built our by our Project Safeguard process. Bring an unbiased expert onto your team to ensure success between you and your systems integrator.

Back in 2011, I developed a very good relationship with GlobalSource IT and it's been a great journey. I supported the global SAP Data Migrations for their client for the past 10 years as a GlobalSource consultant. The team at GlobalSource has always been very professional, straight forward and never late on payments in the span of 10 years without any follow-ups. A special thanks to Ryan and the GlobalSource team for this long-term relationship. Happy to collaborate again to extend the relationship.
Suresh Kancharla
Data Migration Consultant