Hiring an AS400 Programmer: Why Outsourcing Is Your Smartest ROI Strategy

Many businesses using IBM i systems think hiring a full-time AS400 programmer is the cheapest and safest choice for their ERP system. This idea comes from believing that having direct control leads to the best results. But things have changed. With rising costs, a major shortage of skilled experts, and a growing need for modern technology, it’s time to rethink this. The real cost of hiring and keeping AS400 developers in-house is often much higher than you’d expect. Outsourcing your AS400 application development to a trusted partner can save you money, improve your operations, and secure your investment for the long term.

Key Takeaways

• High In-House Costs: Hiring a full-time AS400 programmer involves significant hidden costs beyond salary, including recruitment fees (£8k-£15k), benefits, and high turnover rates, often making it less cost-effective than it appears.
• The Modernisation Gap: Many internal teams excel at maintaining legacy systems but often lack the modern skills in APIs, cloud integration, and security needed to truly modernise your IBM i platform, causing critical projects to stall.
• The Outsourcing Advantage: Partnering with a specialist firm provides immediate access to a team of experts without recruitment delays, converting a large fixed cost into a flexible expense and accelerating your innovation timeline.
• Strategic Growth, Not Just Savings: Outsourcing is more than a cost-saving measure; it’s a strategic move to ensure your IBM i system remains a powerful, future-proof asset that drives business growth.

The Hidden Costs of an In-House Team

Having your own team of IBM AS400 programmers seems like a good idea, but hidden costs can quickly eat into your budget. These costs can slow down your return on investment and stop you from improving your mission critical applications.

• High Cost of Talent: Finding a skilled AS400 RPG developer is hard. There are more jobs than qualified people, which pushes salaries over £70,000. It can also take three to six months just to hire someone, which delays your projects before they even start.
• Extra Overheads: On top of salary, there are many other costs for each AS400 developer:
  • Recruitment: Advertising jobs, using agencies, and spending time on interviews adds big upfront costs, usually between £8,000–£15,000 for each new hire.
  • Benefits: Pensions, healthcare, and bonuses add at least £10,000 more per year to each employee’s cost.
  • Turnover: Because there are few chances for career growth in this role, employees often leave. This means you have to go through the expensive and slow hiring process all over again.
• The Modernisation Problem: Many experienced developers are great with older systems like RPG IV but need costly and slow training to work with modern tools like APIs and cloud services. This skills gap can delay important updates or mean you have to hire expensive consultants. This can create security and compliance risks for your legacy applications.

The Strategic Advantage of Outsourcing AS400 Development

Partnering with a specialist for your development needs gives you instant access to expert help without the costs and headaches of hiring. This is more than just saving money; it’s a smart move for your core business operations.

• No Recruitment Fees: You get a team of IBM i specialists ready to work without paying any recruitment fees.
• Pay Only for What You Need: Outsourcing lets you adjust your AS400 development support as your needs change. This turns a large, fixed cost into a flexible one you can control.
• Get Modern Skills Instantly: A partner team is already skilled in the newest AS400 development language and technology. This includes working with cloud platforms, APIs, and security, so you don’t have to pay for training.
• Finish Projects Faster: With experts on demand, you can avoid delays caused by a small in-house team. This helps you improve your business processes faster and more efficiently.

Cost Comparison: In-House vs. Outsourcing

Why In-House Modernisation Efforts Stall

Even companies with their own teams find it hard to modernise their AS400 systems. These problems often stop them from getting the most out of their AS400 platform.

• Outdated Skill Sets: Many in-house AS 400 programmers are experts in older tools like RPG Report Program Generator. However, they often lack the expert knowledge of APIs, modern cloud platforms like AWS and Azure, and DevOps methods needed for real change.
• Not Enough Resources: Most internal IBM i teams are busy with daily tasks, system support, and fixing problems. This leaves them with little time to focus on important modernisation projects.
• High Training Costs: Training your team in complex skills like cloud systems and API security costs a lot of time and money. There’s also no guarantee that the trained employees will stay with your company.

What Does a Future-Proof IBM i Look Like?

The IBM i platform isn’t outdated; it’s just changing. The real problem is old processes and applications. A future-proof system, built with expert application development, uses modern tools to give your business an edge.

• Automated Security and Compliance: Set up automatic security updates and regular compliance checks. This protects you from online threats and helps you follow rules like GDPR, lowering your business risks.
• Cloud Integration: Use AS400 workloads in hybrid and multi-cloud setups like AWS and Azure. This improves what your system can do and lowers infrastructure costs.
• AI and Automation: Use the data from your IBM i system for smart analytics and to automate tasks. This makes your business more efficient and frees up your team for more important work.
• Modern Tools and Interfaces: Use modern development tools to change old green-screen applications into simple, easy-to-use web and mobile user interfaces.
• API-First Development: Use an AS400 application development toolset that focuses on APIs. This lets you connect your IBM i applications to other services like SaaS, e-commerce, and CRM platforms.

Conclusion

With fewer skilled AS400 programmers available, outsourcing is now a key strategy for growth. Partnering with a specialist firm gives you immediate AS400 developer access to the experts you need to run, update, and protect your system. This saves you money on hiring, speeds up innovation, and makes sure your IBM i platform remains a powerful tool for your business.

A partner like IMS, an IBM Silver Partner with Cyber Essentials Plus accreditation, can also help you plan for cloud migration and improve your system support. This ensures you get the best possible return on your IBM i investment for years to come.

A Smarter Path to IBM i Excellence with IMS

Choosing a partner is about more than just filling a skills gap—it’s about securing your long-term success. As an IBM Silver Partner with Cyber Essentials Plus accreditation, IMS provides:

• Instant Access to Vetted Experts: No recruitment fees or hiring delays.
• Total Cost Control: A flexible model that scales with your needs.
• Future-Ready Skills: Expertise in API, cloud, and modern security standards.
• Accelerated Results: Faster project delivery to drive your business forward.

Let us show you how our strategic approach to AS400 development delivers a superior return on your investment.

Speak with an IBM i Expert Today

Frequently Asked Questions About AS400 Development

1. Is outsourcing AS400 development cheaper than hiring in-house? Yes, in most cases, it is significantly more cost-effective. While an in-house salary is a known quantity, it doesn’t account for significant hidden costs, such as recruitment fees (£8,000–£15,000 per hire), employee benefits, pensions, and the high cost of staff turnover. Outsourcing converts these large, fixed overheads into a flexible, predictable operational expense, allowing you to pay only for the expertise you need.

2. What skills does a modern AS400 development team need? A modern team must go beyond traditional RPG programming. Core competencies should include API development for connecting the IBM i to other platforms (SaaS, e-commerce), cloud integration with services like AWS and Azure, automated security protocols, and DevOps methodologies. These skills are essential for modernising legacy applications and ensuring they remain secure and scalable.

3. Is the IBM i (AS400) platform becoming obsolete? No, the IBM i platform itself is not obsolete; it is a robust, secure, and modernisable system. The real issue is often the outdated applications and processes running on it. A “future-proof” IBM i system leverages modern development practices to transform legacy green-screen applications into user-friendly web or mobile interfaces, integrated with the latest technologies, such as AI and automation.

4. How quickly can I get started with an outsourced AS400 developer? One of the primary advantages of outsourcing is the speed it provides. The process of hiring a full-time specialist can take anywhere from three to six months, resulting in significant project delays. With a dedicated outsourcing partner like IMS, you gain immediate access to a whole team of vetted IBM i experts, allowing your development and modernisation projects to begin almost immediately.