IT Outstaffing Guide: Benefits, Challenges & Decision-Making Tips

In outstaffing, the customer hires a specialist or a team to integrate into his company with the right to manage, and in outsourcing, an external team independently solves issues. In this case, the customer can comment, and make edits but does not manage the outsourcing team. Many businesses have experienced a decline in revenue and are seeking ways to reduce expenses in order to remain financially viable.

  • We aim to explain everything so that all the puzzles come together in one picture in your head, and you can quickly put them back together even if they are reshuffled.
  • However, it’s important to make sure that you choose a reputable and reliable provider who will have your best interests at heart.
  • There are several engagement models or collaboration modes that can be used in the outsourcing scenario.
  • If the distance stopped you from hiring dedicated team in other country before, now when everyone is forced to go remote it might be your chance to finally try outstaffing or outsourcing.
  • The term is often used in the context of IT and engineering but can refer to any type of service.
  • It is designed to quickly solve hiring problems and significantly save the cost of maintaining your own staff.

This allows companies to hire highly skilled professionals at a fraction of the cost of hiring local employees. Outstaffing is becoming an increasingly popular option for companies to save costs and improve the quality of their work. In this article, we will provide a step-by-step guide to planning an outstaffing process, identifying cost-saving opportunities, and improving the quality of work through outstaffing. As the business landscape continues to evolve rapidly, companies are consistently exploring new avenues to reduce expenses while preserving the quality of their operations. Outstaffing is similar to purchasing a strong football player for a season to enhance your overall team performance. If we are to continue the analogy, outsourcing is like purchasing a football club — you merely set the goal, pay the agreed price for the team, and then review the progress from time to time.

What benefits will outstaffing bring to your business?

Outsourcing is the best decision for situations when you have an excellent idea, but don’t have any clue how to transform it into reality! In that case, the agency will ask you the right questions and select an individual project development plan, which will be elaborated by highly qualified specialists. Moreover, you won’t have to manage the team, spend time on finding the right people, and get involved in the development processes. The IT industry is rapidly expanding, new projects are emerging each and every day.

outstaffing benefits

Choosing the eternal search, you can discover cerebral equity in any country and any sphere, ranging from social media managers to specialists in setting up the observatory. Nonetheless, outside team members can bring innovative ideas and new points of view to your projects, broadening the horizons of the company. When the pandemic began, everyone was forced to face a new reality, in which a classic workflow was violated. All business owners had to review the way they manage their projects or employees and faced both financial and organizational challenges.

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Outstaffing collects half of your monthly premiums from each bi-weekly paycheck. For new enrollees, it is usually necessary to collect more than half of the monthly premium from each paycheck for the first few pay periods. When three paychecks fall within one month, the third will have no regular premiums withheld.

It’s important to keep in mind that outstaffed teams may not always meet your expectations, especially due to differences in work culture, lack of oversight, or inadequate training. But with proper research and assessment, you can find a team that is a perfect match for your needs and expectations. Outstaffing allows companies to access specialized expertise that may not be available in-house.

What do outstaffing companies do?

In this article, we will investigate the web development outsourcing market, learn its benefits and costs, as well as go over a comprehensive guide on how to outsource website development. Outstaffing is when a customer requires the exact specialist from an agency for performing short-term tasks. Outstaffing is quite similar to hiring a freelancer, but the main benefit is that you can be sure of your project’s high quality and security level. The outstaffing model commonly provides for signing contracts and quality assurance by an outstaffing agency, whilst the freelancer cannot guarantee that the project will be properly performed. Let’s assume there’s a development team, but they’re missing one member of the team. In that case, they go to an outstaffing agency and hire their employee to be a part of their team until the project is done.

outstaffing benefits

Quality outcomes are critical to the success of any business, and the right outstaffing partner can help achieve those outcomes. Outstaffing, also known as staff augmentation, is a practice that allows companies to hire qualified professionals for short-term or long-term projects through a third-party service provider. Outstaffing allows your business to save a significant amount of money. You do not have to rent office space, arrange equipment, or offer any extra employee benefits because the outstaffing company will handle all of them.

Outstaffing work model

Let’s have a closer look at what outstaffing is to know the distinction. To conclude with a successful project, both sides need to establish clear communication and provide the proper guidelines from the get-go. There are a lot of collaboration tools to help you keep everything under control—Jira, Asana, Trello, Github Project Management.

outstaffing benefits

It’s conducted by the client’s managers with an aim to see the cultural fit of the candidate. Then comes the time for a technical interview with the client’s tech leads. If an interview isn’t enough to make a final decision, clients give tests to ensure the suitability of the candidate.

Benefits of the outstaffing model

The outstaffing model requires a clearly defined task and provides for a person who will perform it properly. The customer pays directly to the agency, which furtherly pays money to the employee. Typically, a specialist stays in his previous company but works on another project until it’s completely done. If you need temporary expansion of your workforce, the outstaffing services will come to you in hand. Cost efficiency was the main reason to take the outsourcing route in the past. But as time went by, the classic outsourcing model as we know it today started to show flaws.

outstaffing benefits

This is a great way to quickly start a big project or launch a product with the help of an extended team that you manage, but don’t have to relocate to your company. Within the tech industry, the outstaffing model is quite popular among SAAS companies, tech startups, middle-sized businesses, outstaffing benefits and global enterprises. What is more, you save on benefits, taxes, insurance, software licenses, and even equipment — all these are the outstaffing company’s expenses. All you have to cover is an agreed hourly rate, which mostly depends on the engineer’s experience and skills.

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Finding the right contractor for your project is easier when you are not tied to a specific location. You can get a tech Specialist with the necessary experience and skills from any country. According to Statista, there are already around 27.7 million software Developers in the world, and the number of Professionals continues to grow. The growing market ensures that you find exactly the right candidate for the job. The first step is gathering project/product requirements, getting information about the skill set requirements, and then launching the recruitment process.

A Quick Introduction to Outstaffing

Time to market is critical for many companies, especially in fast-moving software or Internet technology industries. Therefore, the involvement of external IT specialists is an important IT outstaffing benefit for young or small companies. Long-term personnel search processes do not bind the company and can start work on the project faster.

Costs of Web Development Outsourcing

The contracting company takes care of all the legal aspects of employment. Accordingly, the client does not need to draw up employment contracts and provide social guarantees. The client also does not have to complete documentation on the payment of wages to new personnel and pay taxes on employees since all of this is the responsibility of the outstaffing company.


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