How to Reduce Your IT Staff Costs?

Employees remain one of the largest costs for any company. Especially if you’re in the IT business. Software engineers are very costly and finding good ones can dramatically increase the cost.

To find a talented IT specialist you need a dedicated HR person who is putting out costly job ads, interviewing people and then transferring them to the software department for additional tech interview.


A year later this new software developer leaves the company and the process starts all over again. How much did that cost? A lot!

Firstly, turnover is expensive. Lower it.



One-third of new hires leave voluntarily within the first six months.  And for a good reason – during that time, employees are learning how to do their jobs well, how they fit into the company’s culture, and it becomes a lot to take in. Without additional help in these first crucial months, they can easily drown in information and decide to quit.According to a study by the Center for America Progress, the cost of losing a highly trained employee can be up to 213% of the salary! For example, if your senior software developer is making €80,000 a year and decides to quit, then finding and training another senior developer can cost you up to €170,400!




Secondly, IT, HR and accounting are among the top outsourced services. Outsourcing your IT department may not only reduce your yearly IT development and automation costs but will also eliminate some of the costs from the HR department.

Think of it like this: it’s more expensive and time-consuming to find, train and maintain a good software developer, then simply outsourcing these tasks to a recruitment company.



Thirdly, one way of reducing staff costs is by reducing your employee count. IT solutions come handy here: by automating the daily tasks of some employees, companies can cut jobs and reduce their staff costs.

With the help of automation, U.S. banks are going to cut over 200,000 jobs in the next decade. Chatbots have already started to eliminate many call centre positions all over the world and it’s only the beginning according to Wells Fargo’s executives.



Also, finding senior developers takes a very long time and hiring them is very expensive. On the other hand, junior developers are not so sparse, cheaper to hire, and usually motivated to learn. If you can get a senior developer who is willing to lead a team of juniors, then you have a great team of motivated developers.

In short, to reduce your staff costs you need to lower your turnover rates, as it can get really expensive in the IT business, outsource services like hiring or software development, automate as many tasks as possible, and try to build your team around an experienced senior developer. Feel free to contact us if you want to outsource your software development team or find an experienced senior developer with team-leading skills!




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