Channel News and Analysis - Channel Insider
Empowering the next generation Channel
 

Bull’s Eye Awards
Nominations Open for Channel Insider 2009 Bull’s Eye Awards
Nominations are now open for the Channel Insider 2009 Bull’s Eye Awards, which recognize excellence in customer service, technology prowess, business acumen, channel leadership, communications and community building, and innovation among vendors, solution providers, distributors and channel services companies.



Sponsored Links
  • Control VM Sprawl, What You Don’t Know Can Hurt You
  • FREE Sophos Encryption Tool: Encrypt, compress and share files easily
  • LSI 6Gb/s Portfolio Expands to Include SATA+SAS HBAs
  • Reduce the cost of managing your mobile workers.
  • Find out 7 Ways to Drive Data Center Efficiency
  • SonicWALL breaks through network and email gridlock
  • Save up to 40% on calling costs with Avaya Aura™



  •  

    For Hire: Solution Providers Doubling as IT Recruiters

    in Channel News and Analysis


    Article Rating:starstarstarstarstar / 1
    Article Views: 3163

      Table of Contents:
    1. For Hire: Solution Providers Doubling as IT Recruiters
    2. Revenue generator
    3. Balancing act

    Rate This Article:
    Add This Article To:
    For Hire: Solution Providers Doubling as IT Recruiters - Revenue generator
    ( Page 2 of 3 )

     

    "I fill out an opportunity sheet with my client's employment information, job description, salary, etc., send it to Ingram Micro, and they find several potential candidates," Sarzoza said. "I call the client and say, ‘Pick one.'" The consultant is happy, and so is the client. "As IT consultants, we're the ones in front of the client providing services, and we understand their IT infrastructure," Sarzoza said. "Chances are we're the first ones they're going to call when they're looking to hire an IT manager or technician." If the staffing service grows to about 25 percent of MNIT's business, Sarzoza will be pleased, but he thinks more realistically it will grow to 10 or 20 percent. For MNIT, adding the staffing service was a recent and strategic business-planning decision.

    Resource Library:

    Revenue Generator

    While 40 percent of Ensynch's revenue flows from its staffing arm, that figure is shrinking as the company grows its managed services and professional services practices. Nevertheless, Holmquist said recruiting generates an excellent cash flow and will remain a core part of the business. "For smaller projects, in particular, it's the icing on the cake," he said.

    Sarzoza said MNIT, incurring no new overhead, earns pure profit when he offers staffing services to his clients. "If they hire someone for $100,000 using my service, I get upwards of 20 percent," he said. Not bad for filling out an opportunity sheet.

    As attractive as the money is, Sarzoza wants to keep things in perspective. His is primarily an IT services company with no plans to become a full-fledged employment agency. "For me, staffing is about getting our foot in the door for a business opportunity and helping the client generate money with new technology," he said.

    Call it a tool in the toolbox. That's the way Ric Hughes, CEO of IT consultancy Systems Alliance, views staffing services. "When you look at the value proposition of staffing, it's a way to maintain a high-value relationship with the client month in and month out," Hughes said. "Sooner or later, they're going to have staffing requirements, and I want Systems Alliance to be the first company they call." Today, Systems Alliance offers IT services primarily to midmarket businesses and has two regional offices, in Alabama and North Carolina, in addition to a Maryland location. Interestingly enough, the company started in 1993 as a staffing organization placing IT professionals; eventually acquired a software company; and, in 2003, after identifying gaps in the IT services marketplace, positioned itself as an IT consulting company for midsize businesses.

    Staffing has accounted for almost 25 percent of the company's annual revenue for the past three years. "In the past, that figure was higher, but our professional services business has grown," Hughes said.



     
     
    >>> More Channel News and Analysis Articles          >>> More By Lynn Haber
     


     


    [ci] feeds
    XML
    Add Channel News, Product Reviews, Trends and Analysis to your RSS newsreader or My Yahoo!


    HTML PLAIN TEXT

    Keep on top of news for VARs and Resellers with CI's Weekly Newsletter and Alerts.

     


    CHANNEL RESOURCE CENTER
     
     
    Enterprise Mobility Zone
    The Enterprise Mobility Zone (EMZ) blog is a tool designed to help senior IT executives discuss, create and deploy next-generation mobile strategies in their organizations.
    Go beyond yesterday's tactical approach to mobility!
     
    Build A More Efficient Data Center
    Demands are growing but budgets are not. Solve your pressing IT issues using the resources you already have. Determine which technologies can help you drive efficiencies and how they are applied. Gain a quick ROI on new initiatives
    Find out how
    Let Enterprise TechBrief do the work for you. Aggregated content, tech news, product reviews, vendor updates, how-to’s—all you need to boost your efficiencies and cut costs, all from one place.
    enterprisetechbrief.com