According to the Dice 2019 Tech Salary Report, the average salary of a DevOps engineer is $111,683 per year. This is the first time DevOps engineers enter the top-5 salary rating. There are approximately 2080 working hours in the year, so we can calculate an hourly rate – it is $53,69. Of course, these are average numbers and you can meet DevOps engineers with higher or lower salaries. This rate depends on the experience, qualification and… location of the DevOps engineer.
Because of this a lot of companies prefer to outsource some services to the Managed Service Providers (MSP) and below we will talk about the benefits of this approach. Here you can read about the kinds of DevOps services you can outsource: https://itsvit.com/services/devops/.
Is it all about money?
Well, not exactly. Reducing spending is an important, but not the only reason for outsourcing. It is not a secret that services from Eastern Europe countries are cheaper than from the United States and Western Europe, so many business owners prefer outsourcing instead of in-house hiring. For example, while the hour of an in-house specialist might cost around $50 and more, the hour of outsourcing DevOps engineer might cost $20-30.
The new issue arises and it is quality of work. It is obvious that a great engineer can’t cost cheap. But the common idea is that outsourcing is really cheaper. With the same quality of the engineer’s work, you will spend different sums. In-house talent needs equipped workplace, maybe some expensive tools and gadgets while outsourcing talent receives all these things from the MSP with whom he’s working. So, you as a customer pay only for services and work with your projects. Even if the price per hour is the same, you’ll spend less on the result. Also, for outsourcing employees, you should not organize payment for the vacation of sick leaves. You shouldn’t pay for training and corporate events for such employees. Also, you’ll save a lot of costs on the recruitment and HR processes.
Is outsourcing the only efficient way of hiring?
Of course, no. Outsourcing is just an option. You always can hire in-house talents but it’s really some luxurious way nowadays. You should pay to a recruiter for a search, you should pay HR-manager for interviews and adaptation of new employees, you should buy expensive equipment for the workplace and many other things. This is an efficient way for companies that want to become Managed Service Providers and outsource their specialists in the future or for big companies that always need in-house DevOps engineers.
In other cases, outsourcing is much better. There is an issue with the quality of work. Unfortunately, there are a lot of unscrupulous MSPs who spoil the reputation of outsourcing companies. But still, there are a lot of great and higly-qualified DevOps engineers who work for the MSPs.
How to choose an appropriate MSP?
One of the greatest advantages of outsourcing – you can change the contractor at any time if you don’t like the quality of work. But this is also additional expenses and it will be better to choose the appropriate partner from the start.
You should pay attention to the successful projects and cases of the MSP and to the feedback from previous clients. You might look for some ratings or awards, or find a worldwide rating of the outsourcing companies with all the details – from services to the price per hour. Also, you might have an interview with the key specialists who will work with your project. Such interviews allow to get acquainted with the team and understand their approaches in the work and skills.
The next important moment is making a strategy of work. Before all the implementations, transformations and other changes, you should design a strategy with your outsourcing team. This allows MSP to understand your vision and vice versa.
So, more expensive specialists are better?
Definitely, no. The price per hour is formed by a lot of factors including the location of the specialist. It is not a secret there are more expensive and less expensive countries for living and this is also part of price forming. That’s why qualified DevOps engineers from Eastern Europe cost less than the same specialists from the USA.
Talking about hiring, you should choose to outsource or not and after that decide how exactly to hire a new employee. Sometimes it is better to hire in-house, especially for big companies with long projects or companies that want to become the MSPs. For small businesses, short projects and startups outsourcing is a better choice.
MSP companies have really great engineers, so you shouldn’t be afraid of outsourcing. The main idea is to choose a reliable and experienced contractor. After that, you can relax and enjoy the results.