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by Teodora Vujovic

6 Key Reasons Big Tech Companies Prefer Partnering Over Hiring

In today’s dynamic world of technology, large IT companies increasingly recognize the importance of partnering with smaller IT companies instead of traditional hiring practices. This trend signifies a fundamental change in how major corporations approach their development and growth. Although it might appear contradictory initially, there are several crucial reasons why these companies are increasingly leaning towards partnerships.


Here are the top six reasons:


Cost Reduction

Partnerships allow Big Tech companies to reduce operational costs compared to traditional hiring. Instead of allocating resources for salaries, insurance, training, and other benefits for new employees, these firms can achieve similar results through partnerships with lower financial expenditures.


Flexibility and Agility

Partnerships enable companies to respond more quickly to changes in the market and technological trends.  By collaborating with smaller firms, large IT companies can quickly adapt their products and services or even experiment with new ideas without requiring lengthy hiring processes and employee training.


Access to Innovation 

Smaller firms often possess specialized knowledge and expertise in certain areas that large corporations may lack. Partnerships provide access to these innovative ideas, technologies, and resources without needing internal development or research and development.


Client-Centric Approach

Smaller businesses tend to offer a more dedicated and nurturing approach to client relationships. With fewer projects to manage simultaneously, they can fully focus on and commit to each project they undertake.


Risk Optimization

Reducing the risk of having people without a project after the current one is finished by partnering with another company allows you to share the risk.


Global Reach

Through partnerships with smaller firms worldwide, large IT companies can extend their global reach and presence in markets they may not be able to reach independently. This can be crucial for growth and competitiveness in today’s international business environment.


Partnerships between Big Tech companies and smaller IT companies are becoming an increasingly important strategy for achieving growth, innovation, and competitiveness in today’s digital ecosystem.

These partnerships bring various benefits, including cost reduction, greater flexibility, access to innovation, portfolio diversification, risk optimization, and global reach, making them an attractive choice for many major players in the industry.