Technology resourcing: a critical component of the IT operating model

Technology Resourcing

An operating model is a representation of how an organization delivers value to its stakeholders, both internal and external. When I think of an operating model, the key phrase that comes to mind is ‘value delivery’. If an operating model is built around the idea of delivering value to stakeholders, it means that we must establish what value means for an organization and its stakeholders, and how to create and deliver the same.

To answer the question of value, we must be clear about the vision of the organization and how this translates into strategy. With clarity on the strategy, we then identify the capabilities and/ or enablers required to deliver on the strategy. Practically all the time, Information Technology (IT) is a critical capability and enabler required to deliver on organizational strategy and consequently, value to stakeholders.

An operating model for an IT capability (or simply IT operating model) is a visual representation of how an IT function delivers value to the organization. The IT operating model would typically show the IT capabilities or functions, processes, governance, policies, performance metrics, resourcing and tools required to support the IT organization. This post looks at the critical place of resourcing i.e. technology roles and resourcing of these roles within the IT organization.

Resourcing is a critical component of the IT operating model because we need skilled and experienced talent to execute, if IT will effectively play its role of supporting and enabling the business, and help deliver value and business goals. Absence of critical technical skills necessary for the IT organization to effectively partner with and enable the organization is a business risk that must be mitigated. Having the right technology talent can mean the difference between being an effective partner to the business and one that the business is frustrated with.

Every company is or will eventually be a technology company. In today’s world where there is such a high demand for business technology; the demand for technology talent outpaces supply, and there is increasing competition for technology talent. Organizations are constantly grappling with how to adequately resource their technology teams. Some of the challenges experienced include:

• Shortage of skilled and experienced resources: it isn’t that there are no technology resources available, it is that the employees with the right skills and experience are limited. This situation is further compounded by the need to evolve technical skills due to the rapid advancement of technology; resulting in a situation where there are a large number of resources available, but with limited experience and very few organizations willing to take a chance on them.

• Cost of hiring experienced technical talents: due to demand outstripping supply and the high degree of competition for talents, the costs for technical talents has increased in recent years, and this is expected to continue.

• Location-bias: organizations tend to have a preference for hiring locally, limiting the pool of resources they can hire from.

Addressing the technology talent challenge

How then can one go about resourcing the IT function?

• First we need to understand that IT is an enabler of business value. Consequently, we identify the most critical business capabilities and goals and determine the specific capabilities that are critical for IT if the organization will be successful.

• We then identify the role requirements for these capabilities and combine these roles into positions as may be required.

• With positions identified, we are in a position to source for adequately skilled technology talent to fill these positions.

In order to succeed in sourcing for and attracting technology talents required to properly resource identified positions within the IT function in a sustainable manner while also reducing associated risks, organizations should consider a mix of different approaches:

• For competencies that the IT organization has determined that they want to insource/ retain in-house, an approach is to consider teaming experienced resources with juniors. The senior will be responsible for training the juniors and ensuring quality of work. This helps to reduce resource costs while also ensuring quality of delivery.

• For competencies that the IT organization is not keen to retain in-house, or where the organization is best served by external sourcing, there are a few options available to explore:

  • Staff Augmentation: the IT organization can engage a partner to provide skills required to complement in-house technology skills. The resources provided become an extension of IT. The need to complete internal competency needs may be due to capacity, expertise or budgetary reasons. Sometimes, it may be in the interest of the organization to transfer the risks associated with attracting and retaining talent to the partner. Depending on the resourcing drivers, the type of skill and what works best for the organization, the organization may consider onshore, nearshore or offshore resources. Nearshoring and offshoring are very useful for looking beyond the competitive local market and taking advantage of lower costs of labor.

  • Project Delivery: here, the IT organization infuses resources for projects or to manage specific tasks. When there are no projects that require external resources, the IT headcount is down to the usual levels

  • Capability Outsourcing: here, the IT organization has determined that standing up a sub-function within IT is not worth the input required and is best served by outsourcing that capability to a service provider. The partner or provider manages and runs the outsourced IT capability.

What are the benefits of adopting one or more of the different technology talent resourcing approaches discussed above?

• Helps IT leadership effectively build or complement the skillset of the IT organization.

• Access to a wide pool of experienced technology talents and experts outside of local markets.

• Faster execution of projects.

• Selective sourcing of talents for specific organizational needs, making it easier to scale resources up or down as required.

• Lower talent costs, ensuring that IT leadership can achieve more with the technology budget.

Due to fast evolving technology skill requirements and the dynamic nature of the IT talent space, IT organizations must proactively identify skill needs before they are required. A technology strategy which clearly identifies IT capabilities and competencies required to support the business strategy would help the IT organization plan properly.

Get Started

Resourcing is a critical component of the IT operating model because skilled and experienced technical talents are required to execute if IT will effectively support and enable the business, and help deliver value and business goals.

Does your IT organization need to identify the IT capabilities and roles required to properly support the business? Contact us to discuss or schedule a free consultation.

Do you have staff augmentation, project delivery or capability outsourcing needs? Virtro can help by providing the resources you need. Contact us to discuss or schedule a free consultation.

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