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TECHNICAL RECRUITEMENT LEFTOVERS
Published on February 24, 2021
Recruitment

Technical Recruitment Leftovers – Outsourcing IT Resources

In Technical Recruitment, customers are routinely wondering why consistent and highly skilled technical candidates can’t be found. Qualified candidates (or jobseekers) are left wondering why the market appears so depressed. This article answers these questions by explaining:

  • What are Technical Recruitment Practices
  • Why skilled IT candidates can’t supposedly be found
  • Who or what is left over

This will be one of those painfully honest and direct articles covering Technical Recruitment. It will also explain how customers are stuck with their leftovers – Yikes!

Technical Recruitment Practice:

The widely known-secret of this industry is that it is riddled with layers of business players who are all seeking profit.

  • Each layer or player receives either a flat or hourly percentage of what has been allocated for that technical resource.
  • Percentage margins rank higher, in importance, over resource quality
  • The technical quality of a resource is DIRECTLY proportionate to the following factors:
    • Customer scoping and resource budgetary dollars
    • Number of layers between you and a technical candidate – i.e. profitable percentage cuts of each layer (or player)
    • Technical resource acceptance of the final, leftover, percentage

The quality of your technical resource is significantly dependent upon the number of layers receiving percentage cuts (e.g. Vendor Management System, Implementation Partner, Recruitment Agencies (typically off shore), etc.).  See example table.

The technical quality of any resource is DIRECTLY proportionate to the number of layers between you and a technical candidate.

Technical Recruitment Procurement Process (High Level)

“The technical quality of any resource is directly proportionate to the number of layers between you and your candidate.” Shawn May

These days, businesses use vendor management systems (VMS).  These are sometimes referred as contingent workforce services. Business units (BUs) post their resource (or contract) procurement requests to these VMS.  VMS systems, or companies, charge (or bill) percentages based on their services. These service might include full resource management (end to end).  Charges are sometimes passed to both the client and their servicing Tier 1 vendors.

Tier 1 vendors, or implementation partners, obtain or capture these business resource requests (or requirements) from the VMS. Sometimes these resource requests are sent directly from a manager.  Important note, these tier 1 vendors maintain a fairly standard markup percentage for their services in locating technical resources – typically receive an hourly percentage.  Tier 1 vendors (typically many) employ one or many recruitment agencies (aka 3rd Parties) to locate qualified technical candidates.

Once 3rd party recruitment agencies obtain this resource request, they immediately go to work by literally FLOODING the market searching for qualified technical candidates: job-board-postings (Dice, Monster, Indeed, etc.), emails, phone calls, etc. These 3rd party recruitment agencies aggressively search and contact candidates who possibly, even remotely, match the job description (or resource procurement request).  These agencies likewise employ other 3rd parties to locate potential candidates.  Nearly all 3rd party recruiting agencies are located off shore.

It isn’t uncommon to receive 20-30 emails or phone calls concerning a single project or resource request.

It’s important to grasp the following details:

  • Each layer (or player) attempts to maximize their profits through obtaining technical resources at the lowest cost possible (if you’ve ever spoken to one of these recruiters, you’ve possibly heard the trite question: “what’s your best rate?”  What they’re actually asking is, “what is your lowest or worst rate?”)
  • Very few Tier 1 or recruiting agencies have any technical skills to properly adjudicate the technical aptitude and interpersonal relationship skills of a candidate
  • The customer (i.e. original project owners, or technical leads):
    • is typically RESTRICTED to their business-elected VMS system and/or processes
    • is typically PRESENTED with a number of unqualified candidates
    • is seldom EXPOSED to the TRULY qualified candidates

Why aren’t you seeing these qualified candidates?  Frankly – your qualified candidates are far above, or outside, the rate or percentage range of the chains of 3rd Party recruiting companies.

This hopefully provides a cursory glance at this self debilitating industry.

Who actually suffers?  Regrettable, the customer.

Recommendation: Seek to eliminate the middlemen.


Example of Leftovers:

The following (high level) example ought to provide sufficient details to think with.  However I really wanted to avoid a deep dive into the various complexities (for example the difference between 1099, Corp to Corp, W2, etc.)

  • Customer Resource Title: Senior Security Architect
  • Technical Resource Budget = $300,000
  • Customer’s proposed Hourly Rate: $144.23
  • Duration: 52 Weeks | Weekly Hours: 40hrs | Daily Hours: 8

Note: This does not include taxes & other built-in fees and details (e.g. background / drug checks, etc.)

Standard industry rates for seasoned Senior Security Architects, with a CISSP, range between $110/hr – $145/hr.

Although the above layers will vary, you can immediately reason that:

  1. Tier 1 and recruiting agencies will submit resources (or candidates) far below industry rates
  2. The Interviewing and selection process takes far longer than anticipated because:
      • The majority of submitted candidates are not qualified – taxing internal resources
      • The majority of qualified candidates will and do not take projects at such debased rates – you will never see their resumes

DTS, Inc. does not utilize any middlemen for Technical Recruitment.  Not only does DTS, Inc. maintain direct partnerships with our customer, we also create long lasting relationships with our resources.

Thank you so much.  Reach out for any Technical Recruitment assistance, especially with cost savings.  DTS is at your disposal.

Warmest Regards,

SHAWN MAY – DTS Inc. | Principal Architect & CEO – About Us

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  • Bringing the correct talent (professional-staff-augmentation or project team)
  • Alignment to the business functional & functional direction
  • Maintaining agility with communication and options
  • Ensure to have a properly scoped project and accurate roadmap eliminating fluff

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I had a pleasure working with Dynamic Technical Solutions very closely on a very complex, critical project with a lot of moving parts and unknowns. Not only did DTS quickly grasped all the complexities of the project, they helped bring clarity and order to it. Their dedication and professionalism are tremendous. They are team members whom you can always count on to be there and deliver what’s required and then some. Their technical abilities have allowed us to develop and implement great solutions. DTS’ understanding of IT security helped us not only come up with a robust technical solution, but also a very secure one. I’ll gladly work with them any time again.

 

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I have had the pleasure of working with Dynamic Technical Solutions over the last year servicing the same customer. DTS demonstrates an exceptional technical aptitude, attention to detail and work ethic that makes their service delivery extraordinary. Anyone requiring solid directory services architectural or technical guidance will benefit from what DTS brings to the table. I recommend their work.

 

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I had the pleasure of working with Dynamic Technical Solutions at The Children's Hospital and found them to be an extremely knowledgeable in respect to Microsoft Windows Engineering. Their precision, dedication, thoroughness and understanding in Microsoft Active Directory design and support are impeccable. They take pride in continuously learning, adapting and implementing all of the knowledge they possess and have shown such aptitude in technical writings of Kerberos, DNS and Microsoft products as a whole. I would welcome the opportunity of working with DTS again and hope to do so in the future.

 

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