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Right skilling! Combination of Internal and External Resourcing and its Importance

The recent SAP Analytics Symposium survey of SAP implementation companies revealed that only around 32% of the companies felt they had the necessary skills to leverage their business data. Adding to that, less than 45% of the companies possess the necessary data analytics and business intelligence skills to fully leverage their data.

Michiel Verhoeven of SAP UK believes that “the availability of skilled talent is vital to the success of all organizations.” The lack of skilled talent is not just restricted to SAP users but is impacting most technology companies. EdTech company, Skillsoft has released its annual report on IT skills and salaries and reports that talent shortage has grown to 76%, which is an increase of 145% since the year 2016. The report says conclusively that 3 in every 4 IT teams are now facing serious skill gaps.

How do technology companies meet their growing skills gap? Through Right Skilling! The key towards achieving that is to combine external resourcing (from outside their organization) with internal resourcing (from within the existing workforce).

What are internal and external resourcing? Let us discuss that first.

What are Internal and External resourcing?

Whether the purpose is to fill a new job role and replace a departing worker, internal and external resourcing are the two primary modes of recruitment in technology companies. Let us look at each one of them.

Internal resourcing

With internal resourcing, companies look at their existing workforce for potential candidates to fill the vacant position. Internal resourcing (or recruitment) is often a more cost-effective mode of hiring, which can also boost the motivation levels of existing employees. On its part, internal recruitment can be implemented by offering an internal candidate a promotion (or salary) to a higher responsibility level, or by internally transferring an employee from the current to another job role.

External resourcing

With internal resourcing, companies look at their existing workforce for potential candidates to fill the vacant position. Internal resourcing (or recruitment) is often a more cost-effective mode of hiring, which can also boost the motivation levels of existing employees. On its part, internal recruitment can be implemented by offering an internal candidate a promotion (or salary) to a higher responsibility level, or by internally transferring an employee from the current to another job role.

Next, let us look at the pros and cons of both internal and external resourcing, as well as the importance of combining them in today’s job market.

Should Internal and External resourcing be combined?

Should organizations opt for internal or external resourcing or combine both in their recruitment process? Let us look at the pros and cons of each of these recruitment methods.

Internal resourcing

Let us start with some of its pros or advantages:

Here are some of the cons or disadvantages of internal resourcing:

External resourcing

Next, let us look at some pros or advantages of external resourcing:




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