In an Age of Talent Scarcity, Managed IT Services Are Looking Better and Better

    April 4, 2016

    By Per Bauer

    Tech companies have to shell out serious cash to retain dwindling tech talent, which is why many heads are now turning to automated IT services — they minimize the need to onboard new recruits while also enhancing the value of existing talent.

    A basic lesson of economics is that when supply goes down and demand remains stable (or increases), prices will soar. The market for top tech talent, such a computer engineers, currently fits this mold like a glove, as it gets more and more expensive for tech companies to hire the highly sought-after whiz kids just exiting college.

    According to the New York Times, the competition has reached a fever pitch, causing rampant mistrust and talent poaching between the ranks of Silicon Valley tech giants. This is especially true of those involved in emergent cloud technologies, such as Amazon’s AWS, Oracle, Google, and Microsoft.

    It’s a battle that has pitted the enormous cash reserves of household tech names against the wile and guile of smaller companies, who offer their talent immediate access to mission-critical projects and the opportunity to hone skillsets from the deep end of the pool.

    However, this age of talent scarcity has led to another interesting development: managed IT services, and their ability to replace expertise-laden tasks with automated algorithms, have become increasingly attractive to tech companies. Companies are finding that automated processes can free up existing talent to perform more valuable tasks, like making investment recommendations. Put another way, supply is responding to market demand in a big way.

    A Rare Trade

    The Times reports that Silicon Valley companies are putting up enormous sums to entice top talent. Many cloud engineering jobs that require just a few years experience or graduate degrees pay out more than $125,000 (if not $300K to $1 million) annually, complete with perks and stock options. Google reportedly paid a summer intern $45K for just three months.

    These kinds of sums are putting an undeniable strain on small to mid-level companies, especially as tech goliaths continue to up the purchasing ante. Naturally, the trend has invited some animosity among competitors — AWC head Andy Jassy loosely implied that Oracle was using “strong-arm” poaching tactics while speaking at a conference, according to CNBC.

    However, host companies that rely on complex IT environments to support business services have realized that there are greener (and more cost-effective) pastures within reach. Enter: the managed IT service provider, looking better and better with each passing day.

    A Service to Suit Every Talent

    TechTarget reports that, with such high demand for rigorous IT solutions, managed service providers (MSPs) are thriving — especially those with a broader focus. They confirm that, astoundingly, 33% of MPS have seen three-year revenue growth rates higher than 20%, while 30% have experienced growth between 11% and 20%.

    Of course, managed IT services have likewise had to adapt to virtualized and cloud environments, and TechTarget concludes that the strongest MSPs are those that have been able to brandish a diverse array of service options. Industry or application-specific solutions no longer fly in an interdisciplinary IT market.

    That’s the thinking behind TeamQuest’s Managed Services program, which provides highly customized solutions straight out of the box. Filled with an automated suite of capacity management, risk and health evaluation, and administrative tools, our IT services team help organizations elevate IT maturity and drive value faster, whether through optimizing existing infrastructure or helping to plan for additional capacity needs. They’re also automated, which leaves your experts with precious time to work on priority number one: growing the business.

    As a result, companies as diverse as multinational telco providers, financial services, and space agencies all use our software, as they have for over 25 years. Firms can always lighten their wallets chasing tech’s top talent — then again, they can also purchase products that come with world-class expertise already packed inside.

    (Main image credit: Charles Gadbois/Wikimedia)

    Category: cloud-computing