Some 86% of UK employers are having difficulties hiring and, in the financial services industry alone, this figure is at 83%.
Financial services employers are struggling to hire people to implement their critical digital transformation programmes. Fintech is seeing an all-time high in demand for people in emerging and advancing areas such as cybersecurity, artificial intelligence (AI) and data analytics. Globalisation means intense competition for skilled workers and qualified professionals.
Talented people can afford to be choosy too, expecting as the norm benefits such as remote and hybrid working that emerged from the pandemic.
Outsourcing talent
Increasingly, businesses in the financial services sector are getting around this perfect recruitment storm by looking outside their organisations and implementing resource augmentation. To stay ahead, they need to take new approaches in acquiring and managing talent.
Accenture Research has found that nearly 90% of companies across all industries contract a third-party solution provider to help with at least one component of their digital transformation.
Having access to the right talent at the right time can be critical as fintech rapidly advances. Keeping pace otherwise for financial services businesses is a real challenge.
Put simply, resource augmentation is a flexible and cost-effective way of sourcing what you need. More than a convenient option for managing short-term needs, when implemented strategically, resource augmentation can be an integral part of an organisation’s long-term success.
Filling gaps with technology
Instead of investing in hiring employees with specialised skills, companies can access expertise in emerging technologies such as software development, data analytics and cybersecurity. Companies can scale their workforce up or down based on project demands. The flexibility of resource augmentation allows for more efficient resource allocation and cost management, even reducing costs.
It’s not just the larger companies that are using resource augmentation to bolster their tech. A broad range of financial services organisations are doing so for different reasons while achieving cost efficiencies.
SMEs and start-ups are augmenting resources to access specialised expertise on a temporary or as-needed basis without the long-term costs and commitment associated with traditional hiring.
Both types of business can operate with limited resources and so need to be agile in scaling their operations.
Larger enterprises benefit from resource augmentation when there are short-term projects, spikes in workload or seasonal or cyclical fluctuations. Augmenting their existing teams with specialised skills can help meet project deadlines and maintain productivity without overburdening their internal staff. They can scale their workforce up or down as needed. The same is true of special projects, such as software development, mergers and acquisitions (M&A), or process improvements. These may require specific expertise or resources that are not available internally.
Resource augmentation brings in experts or specialised teams.
Moving quickly
Businesses expanding into new markets or launching new initiatives may need to quickly ramp up their capabilities to support growth and innovation. Resource augmentation enables them to access the skills and resources necessary or implement strategic initiatives without delaying timelines or overextending their internal teams.
Resource augmentation allows organisations to quickly adapt to market demands, innovate, and seize new opportunities. By outsourcing non-core functions or tasks, organisations can free up internal resources to focus on core competencies and strategic initiatives that drive business growth and innovation.
This strategic focus enables organisations to allocate their resources more efficiently and effectively.
Engaging augmented resources typically involves shorter-term contracts or project-based engagements, reducing the long-term financial commitments associated with hiring permanent staff. This can be particularly advantageous for companies operating in dynamic or uncertain markets.
Augmented resources can bring fresh perspectives and efficiency improvements to projects, potentially leading to cost savings through optimised processes and workflows.
With a growing number of market forces impacting the financial services industry, resource augmentation is an important part of a business’s armoury in delivering its strategic objectives.
It is much more than just filling a skills gap.
