Every company requires good specialists, but not everyone has all the necessary resources to recruit and maintain a big team. That is why many companies use outstaffing type of hiring. The pandemic lockdown especially displayed the potential of this model over the others.
The choice of hiring approach largely depends on the initial needs and goals of your business. In this article, we will show the main reasons why software development outstaff is better than direct hiring and how to find an outstaffing company with a dedicated team that suits you best.
OUTSTAFFING: HOW IT WORKS
WHY IS OUTSTAFFING BETTER THAN DIRECT HIRING?
Outstaffing is a type of contracting when a third-party team or worker, being officially employed by another company, performs the work for a client.In outstaffing model, the whole scope of work is controlled by customers themselves who have direct access to the development team. Often, they manage the hired team (or an individual) along with their own; the payroll is handled by a contractor (an outstaff company), though.Basically, outstaffing model looks like this:
Clients often choose outstaffing when they already have their tech team but lack some experts, so a task can’t be handled internally.
Outstaffing example: The CEO of NorthDevTech, a Netherlands-based tech company, decides to hire a team of specialists located in an Eastern European country. After researching online and talking to fellow business owners, they decide to partner with TalentPro, a company specializing in staffing clients’ teams with local specialists. NorthDev sends TalenStaffingtPro detailed job descriptions and requirements for their open positions. TalentStaffingPro proceeds to find fitting candidates, who NorthDevTech interviews and then approves the ones they like best. The latter sign contracts with TalentStaffingPro, while TalentStaffingPro signs a contract with NorthDevTech. This way, NorthDevTech indirectly hires full-time talent that is technically employed by TalentStaffingPro. As a result, the Dutch company extends its team with subcontractors located abroad.
9 BENEFITS OF OUTSTAFFING
What is the reason for a growing interest in outstaffing? We’ve collected nine main reasons why do the leading worldwide companies value this approach of Extended Team Model:
1. Quick response to your business needs and less time to hire. You don’t need to gather an in-house team and get a faster product and business development. You can manage the number of developers on the project. There are no problems if you need to adjust the size of the extended team or the number of tasks during the development process.
2. You can find talents from all over the world. There are no limitations on location. You will have direct access to the remote or offshore team with the help of easy-to-use web tools.
3. You don’t need to take care of local taxes (in Eastern Europe or in emerging countries, taxes are lower) – it is simply cheaper than hiring an engineer, let’s say, in the UK.
4. You don’t worry about personnel retain – if the specialist stops working on your project, the company will simply find another one with the same skills. Besides, onboarding is also a task of the outstaffing company. Outstaffing helps with a high employee turnover.
5. Fewer efforts from your HR department – no need to search for the candidate and pay extra money to your recruiters. It only takes a few days to select a team for outstaffing, while finding a candidate for your team requires numerous interviews and more than a few weeks. You can always choose teams with extensive experience in the technologies you need. In addition, you don’t need to worry about finding a next project for the outstaffed team because it is not your team anymore.
6. Staffing flexibility – it takes no time to scale or reduce the number of software engineers since the vendor handles all communication. A client has control over the IT team or individual developer and is constantly informed about the whole situation of the project. Regular phone calls, meetings, and discussions, updates, sprints – you will know all details about your project.
7. There is no need to spend resources and additional time on educating employees – by hiring an outstaffing firm, you get access to the best talent pool and no longer have to train junior employees.
8. Less commitment – it’s better not to rush with building in-house departments if you plan risky undertakings. Contacting an outsourced firm is safer. You can quickly validate the idea since a business manager can terminate the collaboration if the project fails.
9. There is no need to maintain an in-house department – by hiring a dedicated team who works remotely, you will get significantly lower costs than hiring employees to your office. As a result, the lower development cost allows customers to offer a competitive price. Aside from office space, you don’t need to pay for equipment, proprietary management techniques, electricity bills, and other maintenance expenditures.
What to pay attention to when choosing an outstaffing agency.
It is the basis how to choose a software development company:
- remember to research your potential partner in social media, google, government sites
- discover their portfolio
- try to learn as much as possible about their internal culture
- make sure the low or very expensive price is reasonable
- legal backing of the process: NDA, IP rights
- including guarantees. For example, GetApp Group offers a two-week free trial and replace our employees if they do not suit your software development project
- asks whether you will be able to work with employees directly
- how they set communication: their communication tools and how fast they respond to your messages
- staff retention strategies they employ
- will a specialist work exclusively for you
- employees working conditions
- choose software development agencies that offer complementary services.
Smart hiring with GetApp Group: best tech talents in 2 weeks
- The top 3% of Ukrainian developers are working in GetApp Group, due to our detailed selection of five stages. Our HR department covers almost all worlwide candidates
- a dedicated project manager, who will in a transparent manner organize the work of experts you will hire from us
- 50+ reliable tech specialists to choose from
- 2-week trial to decide whether the developer is right for you
- 2 weeks to expand and scale down your team
- 90% of our employees have experience with multicultural teams
- 24 hours to see your first candidate’s CV from us