How Outsourcing Can Tackle High Attrition Rates

Netsmartz LLC
3 min readNov 1, 2022

Over the past few years as more and more companies have turned to hybrid and remote work models, there has been a spike in the demand for major tech roles such as software developers, data scientists, cyber security professionals and cloud engineers. Sadly, this demand isn’t being met with a supply of trained employees and professionals. It has led to startups and enterprises offering current developers in the market salaries 100 to 150% higher than their base salary to acquire the talent and expertise they bring to the table. This has increased attrition rates.

Many times, employees don’t find the company they are working in to be beneficial for their long-term growth and progress as they don’t see much scope for work and creativity being welcomed.

Tech professionals also fear career stagnation which comes from working in one place for prolonged periods of time.

All in all, there are myriad factors that lead to high attrition rates that can’t be solely blamed on the employer but has a lot to do with the current employee attitudes and viewpoints in the market.

Some crucial reasons for high attrition rates:

  • When people are unhappy working with the provider, management is doing something incorrectly.
  • When service quality varies as a result of poor labor policies.
  • Your service provider is either losing ground in the labor market or your account is unimportant to them.

Outsourcing can help you tackle this issue. Here’s how:

1) Cost-Effective: You don’t have to spend as much time or money replacing employees when you outsource. Contractor and freelancer wages are typically lower than those of full-time employees. Because contractors do not technically work for your company, you are not required by law to provide employee benefits.

2) People with Extensive Training: Freelance and project-based work sites such as Upwork can be low-cost ways to improve your workforce. Such job boards make it simple to find highly trained individuals for any given role. However, you must first learn how to pay freelancers before you do so.

3) Fills the Specialized Role: Because outsourcers are frequently fully trained and experienced, you can temporarily fill a role without being obligated to fill that role permanently. They might even be certified in the competencies you require.

4) Quick Staff Augmentation: Skilled workers with specific capabilities will complete the job faster than you. The global market provides you with the opportunity to hire people from all over the world. If you hire someone in a different location or time zone, you can track your systems in time for customer inquiries.


Outsourcing development teams can be a boon for companies as we see above in more ways than one. It will not only curb high attrition rates but also help drive better business outcomes in the long run if leveraged properly.



Netsmartz LLC

Netsmartz strives to be a Leader in the Global Marketplace for IT Solutions in the areas of Cloud & Infrastructure Services, eLearning, Enterprise Mobility.