Navigating Tech Layoffs: Exploring IT Outsourcing as a Strategic Solution

You've likely heard about the layoff spree happening across the US and Europe, affecting companies from Google to Unity. 

These layoffs have created a great deal of uncertainty and challenges for the employees who are losing their jobs - as well as for the tech companies that are now running with fewer staff members, as they are still expected to keep up with the rapidly evolving tech landscape (which is a daunting task in itself), now with a fraction of the manpower.

It remains to be seen what will happen to these companies in the future, but we have some insights as to what may occur in the next few months.

Understanding the Current Tech Layoff Landscape

According to Visual Capitalist, Unity, Wayfair, and Google have laid off the highest number of employees in 2024 so far - at 1.8K, 1.7K, and 1K respectively - while Twitch has laid off the most employees percentage-wise, at 35%.

These seem to be the result of the mass hires that happened across the tech industry during the pandemic, which impacted virtually everyone’s tech consumption - whether for work, connection, or simply entertainment. They now are finding the need to cut back on some of that exponential growth, as a result of challenges like inflation and new-found opportunities in AI.

The Role of IT Outsourcing

In these times of uncertainty, where companies face budget cuts and overall limitations, it’s important to find flexible solutions that can shapeshift around your needs, and grow with you as those increase over time.

A great option for companies in these situations is outsourcing, as they get to, in most cases, work on an as-needed basis, without the commitment of hiring one or more full-time employees or even making room for them in your physical office.

This can not only save the company time and money, but also allow them to access specialized skills that might’ve required more than one employee, and again have the flexibility to customize the service to your needs. You also get to access a global pool of talent, that can offer different backgrounds that can be beneficial to your projects.

How to Successfully Navigate IT Outsourcing

If your company has been struggling to keep up with the demands of the industry, yet you’re not quite ready to increase your headcount, it may be time to outsource some of your IT needs.

In this case, you must find the right outsourcing partner for your business and particular situation - that way you can build a long-lasting relationship with that individual or agency, making future projects that you work on together go a lot more smoothly and quicker, as they’re already familiarized with the brand and its processes.

Some things to consider when outsourcing:

• Make sure you set clear goals and deliverables you’re hoping to get from this partnership, as well as a budget for the project, even before posting a job ad and/or reaching out to potential professionals.

• Be as descriptive as possible in your job posting and/or outreach communications, including your goals, budget, and any other information that’s relevant and that the professionals may need to know before deciding whether or not to reach out to you. This way you’ll have fewer people to consider for the position, and those will be much more likely to be a good fit.

• Communication is key: make sure you don’t hold back on any information, whether it is about the company or the project at hand, and make sure to set clear expectations to avoid misunderstandings down the road. This will also be important as you’re working together, as you’re sharing information and feedback since it’ll help the project timeline and success.

TLDR:

- Layoffs have been a result of budget cuts after an uptick in hires over the pandemic.

- A good, budget-friendly, and flexible solution to your company’s needs is outsourcing for strategic IT needs.

- When looking to outsource, you want to find a person or agency that is a good fit for your company, as you may need to work with them again in the future.

- Making sure you set clear goals and expectations and give clear, constructive feedback throughout the project will increase your chances of having a successful outcome.

Easily and quickly scale up your teams without the long-term commitment and overhead. Reach out to the InfoNet team today for a quote on your next IT project.