Microcuts May Be Coming To Your Tech Team

There’s a new trend sweeping through technology companies right now — and no, it’s not artificial intelligence. It’s the tendency for companies to make small cuts to their information technology staff without announcing mass layoffs.

These staff reductions are called “microcuts,” and the largest technology companies, including Meta, Amazon, and Microsoft, are engaging in it. After making substantial job cuts in 2022 and early 2023, many companies are now looking at their tech teams and trying to figure out how to make small cuts while maintaining productivity.

The microcuts are part of a more significant push among companies to maximize their profits and focus on being as productive as possible without going on massive hiring sprees. So far this year, companies have cut 186,000 tech jobs, and the job posting company Indeed says software development postings are down 51% over the past year.

But it’s not just the world’s leading technology companies that can benefit from this strategy. Companies of all sizes know that ramping up tech talent in the current economic environment probably isn’t the best strategy.

As a result, many companies are pivoting to nearshore IT development companies like Kiberbnum to fill in the gaps.

How Partnering with Kibernum Can Offset Microcuts

If your company is considering microcuts or has already used them, you may need some outside technology services to help offset the staff reductions. And no matter what your IT needs, Kibernum’s services can help. Here’s how:

● Software development: Kibernum offers scalable, on-demand software development services to complement any tech team. Choose as much or as little help as you need to build software programs with expertise in Lean and Agile methodologies.

● Software maintenance: Outsourcing maintenance can be one of the best ways to save money while keeping existing systems functioning and up-to-date. Kibernum’s skilled teams allow your IT staff to focus on the big picture without sacrificing ongoing maintenance.

● Application development: One simple phone call can add world-class mobile development to your tech team. Kibernum can build mobile apps for Android, iOS, and Unity platforms that are either native or hybrid, depending on the need.

● Cloud development: Creating efficient and powerful cloud products is essential for any company that’s scaled back on their teams but still needs effective DevOps, artificial intelligence services, and data management to move their company forward. Kibernum can handle them all, so you don’t need to.

Partnering with Kibernum means working with a company with more than 30 years of experience who knows how to listen to your company’s needs and help you build the appropriate services to fill in the gaps.

You’ll have the opportunity to scale up when the timing is right and pull back when needed, allowing your company to benefit from on-demand tech expertise that works with any budget.

Harrison added that choosing the right outsourcing partner is “pivotal to the success of your project,” so don’t be shy about asking questions or inquiring about a potential partner’s list of clients.

“Outsourcing partners often specialize in specific technologies and industries,” Harrison said. When you find the right one, you can leverage their expertise and utilize innovative approaches you might not have access to with your internal tech team.

The Need for Nearshore IT Services Will Keep Growing

Technology companies already know what other industries are beginning to realize: The economy is still unstable right now. Recent analysis from Bloomberg economists determined that a U.S. recession is “likely and coming soon.”

This means that companies who have yet to experience microcuts within their IT teams could see them soon. A Wall Street Journal article highlighted this trend recently, citing Adam Ward, the founder of a recruiting agency, who said,

“There’s a second look at costs, at lines of business, and where investments are going to be next year. The output are these microcuts. This will be a new normal.”

Kibernum can help companies stay ahead of this trend by providing top-shelf tech services, allowing IT teams to manage existing systems and build new applications at a fraction of the cost.

Find out how Kibernum can help you innovate amid microcuts. Our company has over 30 years of experience working on projects with the world’s largest corporations. Get in touch with us to find out how we can help you.

Find out how Kibernum can help you innovate amid microcuts. Our company has over 30 years of experience working on projects with the world’s largest corporations. Get in touch with us to find out how we can help you.