Even as subcontracting rates surge, IT cos are putting talent ahead of costs

As the war for talent rages across the technology industry, IT companies are turning to trusted subcontracting sources to fill the gap. According to estimates, subcontracting costs during the fiscal second quarter were up 7-10% from the previous quarter across the IT industry.

Even as companies have bumped up hiring, they are also making peace with surge pricing across subcontractors to make up for the heavy client demand they are processing said executives of IT firms. As in the case of hiring, even in subcontracting, employees with strong digital skills are the ones drawing premium payment.