Offshoring Models Overview
Offshoring Models Overview
Six major considerations and implications
Six major considerations and implications
π Talent Source
Agencies
Often provides talent from current staff that is in between engagements.
Direct-to-Talent with Keepers
Recruit talent like an in-house recruiter to find a match across multiple layers of fit.
Implications
Agencies
β’ Placement as fast as 1 week.
β’ Speed at the cost of placing whatever staff is in between projects.
β’ More mercenary than missionary.
Directo to Talent
β’ Find the best talent fit by matching technical skills, experience in specific challenges, career trajectory fit, and cultural fit.
β’ The full recruiting cycle can take 4-5 weeks.
β’ Talent chooses to join your specific role, mission, and culture.
ππΌββοΈ Talent Preference
Agencies
Most top talent would rather be part of a team than work at an agency.
Direct-to-Talent with Keepers
Attract top talent with team integration, specialized support, perks, and fair compensation.
Implications
β’ You’re likely missing out on actual top talent.
β’ Top talent at agencies is at high risk of turnover.
β’ Top talent (including the top 1%) rarely apply for work at agencies.
π Talent Source
Agencies
Often provides talent from current staff that is in between engagements.
Direct-to-Talent with Keepers
Recruit talent like an in-house recruiter to find a match across multiple layers of fit.
Implications
Agencies
β’ Placement as fast as 1 week.
β’ Speed at the cost of placing whatever staff is in between projects.
β’ More mercenary than missionary.
Directo to Talent
β’ Best talent fit by matching technical skills, experience in specific challenges, and cultural fit.
β’ The full recruiting cycle can take 4-5 weeks.
β’ Talent chooses to join your specific role, mission, and culture.
ππΌββοΈ Talent Preference
Agencies
Most top talent would rather be part of a team than work at an agency.
Direct-to-Talent with Keepers
Attract top talent with team integration, specialized support, perks, and fair compensation.
Implications
β’ You’re likely missing out on actual top talent.
β’ Top talent at agencies is at high risk of turnover.
β’ Top talent (including the top 1%) rarely apply for work at agencies.
π΅ Fees
Agencies
50% to 75% take rate over the total bill, often obscured through NDAs.
Direct-to-Talent with Keepers
Transparent service fees. No take from talent comp. Compares at approx 17% of the total bill.
Implications
Agencies
β’ Incentivized to maximize spread.
β’ Unfair deals and siloes.
β’ Misrepresentation of talentβs experience and skills.
β’ Misaligned expectations due to low salary passthrough.
β’ Higher risk of talent turnover or reassignment.
β’ Work secretly executed by junior “back-office” talent.
β’ Lack of actual top talent.
Direct-to-Talent with Keepers
β’ Incentivized to foster successful long-term relationships.
β’ Fairness and transparency breeds goodwill.
π Turnover
Agencies
Talent may have been with the agency for some time and is statistically closer to turning over.
Direct-to-Talent with Keepers
Keepers finds fresh talent and focuses on engagement to keep the day-one energy alive.
Implications
β’ Can cost 1.5 to 2 times the annual compensation.
β’ Causes knowledge loss, disrupts workflows, and decreases efficiency.
β’ Lowers morale and engagement among remaining members.
π΅ Fees
Agencies
50% to 75% take rate over the total bill, often obscured through NDAs.
Direct-to-Talent with Keepers
Transparent service fees. No take from talent comp. Compares at approx 17% of the total bill.
Implications
Agencies
β’ Incentivized to maximize spread.
β’ Unfair deals and siloes.
β’ Misrepresentation of talentβs experience and skills.
β’ Misaligned expectations due to low salary passthrough.
β’ Higher risk of talent turnover or reassignment.
β’ Work secretly executed by junior “back-office” talent.
β’ Lack of actual top talent.
Direct-to-Talent
β’ Incentivized to foster successful long-term relationships.
β’ Fairness and transparency breeds goodwill.
π Turnover
Agencies
Talent may have been with the agency for some time and are statistically closer to turning over.
Direct-to-Talent with Keepers
Keepers finds fresh talent and focuses on engagement to keep the day-one energy alive.
Implications
β’ Can cost 1.5 to 2x the annual compensation.
β’ Causes knowledge loss, disrupts workflows, and decreases efficiency.
β’ Lowers morale and engagement among remaining members.
π€ Integration
Agencies
Can result in siloed teams and talent feeling like outsiders.
Direct-to-Talent with Keepers
Team members can integrate to champion your team, mission, and culture.
Implications
β’ Engaged teams are more productive, inspired, and accessible.
β’ Agency talent optimizes for career growth inside the agency, affecting alignment and loyalty.
β’ Disengaged talent is costly, an $8.8 Trillion problem.
β’ An integrated team is more agile and responsive.
π©πΌβπ» Hardware
Agencies
Some agencies require their talent to provide their own devices.
Direct-to-Talent with Keepers
Keepers gives you the option to provide secure and high-performance equipment locally.
Implications
β’ Data breach risk and regulatory compliance.
β’ BYOD policy is silently viewed as an anti-perk.
β’ Hardware costs approximately 100% more in LatAm.
β’ No hassle to procure and manage equipment offshore.
π€ Integration
Agencies
Can result in siloed teams and talent feeling like outsiders (you feel it, and so do they).
Direct-to-Talent with Keepers
Team members can integrate to champion your team, mission, and culture.
Implications
β’ Engaged teams are more productive, inspired, and accessible.
β’ Agency talent optimizes for career growth inside the agency, affecting alignment and loyalty.
β’ Disengaged talent is costly, an $8.8 Trillion problem.
β’ An integrated team is more agile and responsive.
π©πΌβπ» Hardware
Agencies
Some agencies require their talent to provide their own devices.
Direct-to-Talent with Keepers
Keepers gives you the option to provide secure and high-performance equipment locally.
Implications
β’ Data breach risk and regulatory compliance.
β’ BYOD policy is silently viewed as an anti-perk.
β’ Electronics cost approximately 100% more in LatAm.
β’ No hassle to procure and manage equipment offshore.