One of the primary reasons why companies turn to vendors

There's a reason why vendor resource management is currently becoming a necessity for enterprises. 

When a business encounters a lack of talent, whether it be in procurement, IT, marketing or some other discipline, outsourcing responsibilities to a third party appears to be the safest option. However, it's important to ask a critical question: Why is it that organizations are finding they don't have the employees needed to perform key jobs?


Corporations typically point to an absence of in-house training as the problem, but contributor Chris Fox believes salary has a lot to do with the shortage. The United States government, private enterprises and universities have been working together to provide apprenticeships and specialized programs to mitigate the situation, but these may not even be necessary. 

One of the first challenges associated with this issue is that millennials entering the workforce cumulatively find themselves with an exorbitant amount of student loans to pay off. Attending a reputed engineering or computer science school isn't cheap, and graduates favor well-paying positions that allow them to pay back their debt as quickly as possible. 

Job security 

Contracting a cloud service provider, database administration firm or other company to provide a particular service is a growing practice among organizations. There are three possible reasons why this trend persists:

  • A lack of in-house talent (as noted above)
  • A "They can do it better than we can" attitude
  • A shortage of in-house time, resources and knowledge

The general consensus is that in-house IT departments are considered a cost because they're not producing any profits. Professionals entering the field are recognizing this perception and seeking positions at managed IT services companies, primarily because they know they'll be regarded as revenue-generating assets. This means they don't have to worry about being let go due to an outsourcing move. 

Where's the resolution? 

First off, it's imperative for manufacturing companies to prepare themselves to train a generation of workers who have demonstrated their ability and willingness to learn a particular craft. They understand engineering concepts, so instructing them on how to apply this knowledge to the actual trade must become perfunctory. 

In addition, Industry Week noted millennials need to be more resourceful and enter the prospect of working in manufacturing with an open mind. Factories are looking for specialists who will take production to the next level - their job descriptions don't involve standing in front of a machine all day.

Yet, this points to the issue of miscommunication. Millennials assume accepting mundane work is conducive to landing a position in a factory. Companies need to acknowledge this perception and turn it on its head. 

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