Exposing “The Bench” in IT Outsourcing

At TechPods, “Co-Sourcing NOT Outsourcing” means that we do things differently compared to conventional IT Outsourcing companies, and one of those things is having a bench. Before we get started, we do not operate a bench, although we do believe that there is one type of bench that is really beneficial to junior engineers. However, let’s first dive deeper into the term bench and what it actually means in IT. 

What Does “The Bench” in IT Outsourcing Really Mean?

The IT outsourcing bench is a prevalent practice within the IT industry where a firm retains a pool of salaried engineers who are not currently engaged in any client projects. Essentially, it represents a resource “bench” in software firms made up of software engineers who are awaiting their next task. The "bench” model in outsourcing is frequently showcased to clients as an immediately accessible talent pool that can be deployed swiftly. Nevertheless, this strategy can result in various problems, including low motivation and doubts surrounding the genuine availability and involvement of the outsourced team.

The Three Most Common Types of Benches - and Why They Don’t Work

Although outsourcing firms have developed different terminologies and rationales for their bench models, they typically can be grouped into several categories. Each category carries its unique set of risks and inefficiencies for the client. Let’s explore the three most common bench models you are most likely to encounter in practice.

The Classic Idle Bench

This is the most well-known type of bench that has become so infamous over the years, and is where FTEs within the outsourcing company are literally idling because they have no work.

If you’re a CTO, you’ve no doubt heard from outsourcing companies, telling you they have rockstar engineers who can immediately start on your projects, right? The truth is that rockstar engineers do not sit on a bench, and even if they do, you’re trying to force square pegs into round holes. More often than not, the engineers they’re trying to sell you are actually freelancers or subcontractors. 

The On-Demand Bench

More like a pool than a bench, this is where an outsourcing company builds a network of partners and gets to work selling their services. This might actually work for tactical projects; however, CTOs must understand that freelancers and/or subcontractors that are being sold via outsourcing companies are usually juggling various projects, thus you’re getting a diluted version of their true capabilities. This approach is a great way for outsourcing companies to turn a quick profit with little risk, hence its popularity on the market.  

The Junior Bench (The Only Good Kind)

Earlier in the article, we mentioned that there is a bench that is actually beneficial for the development of junior engineers, and here it is! Specifically designed for learning and development purposes, this type of bench gives junior engineers an opportunity to attend courses on company time and work on varying projects, with varying technologies and people, and will ultimately enable them to discover their talent. However, this should be a fast-track programme resulting in them being placed in a permanent team within 6-12 months. 

There are, of course, other types of benches, including Rotational, Strategic, Buffer, Shadow, etc, and they all pretty much mean the same thing, which is engineers being kept as reserves until their services are required. 

Why Engineers Deserve Better Than Sitting on the Bench

The common outsourcing practice of keeping developers disengaged presents considerable concerns. For engineers, prolonged durations on the bench may lead to a stagnation of skills and a drop in motivation. "How does being on the bench affect a developer's performance?" is a pivotal question. The absence of stimulating projects can lead to developer underutilisation, where capable individuals cannot apply and enhance their expertise. This represents a significant issue with IT staff augmentation that clients frequently encounter, as they might find themselves with a team that is not as skilled or current with the latest technologies. Additionally, managing bench resources in IT can be a complicated endeavour for outsourcing firms, often resulting in an emphasis on utilisation rates at the expense of developer well-being and career advancement. 

This is why hiring dedicated development teams that are completely integrated within your own internal team is a more efficient strategy. The problem of outsourced team availability is also a common outcome of the bench model, as the promised immediately available engineers may lack the specific skills necessary for a project, causing delays and frustration.

The traditional IT outsourcing bench model is fraught with challenges for both clients and engineers. This system often leads to skill stagnation for developers and provides clients with disengaged or mismatched talent, creating project risks. A co-sourcing approach, however, avoids these pitfalls by focusing on building dedicated, fully integrated teams that are invested in your company's success from day one. To learn more about a more effective approach, read this article on how co-sourcing successfully eliminates the bench model.