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

Therefore, they totally concentrate on it, and this contributes to the quality and speed of their work. Besides, the fact that the client company supervises their work also fuels specialists’ performance and helps to keep them on the right track. During the whole collaboration process, the outstaffing partner stays in touch and provides support. Calls are arranged with a certain frequency to share feedback, access specialists’ performance, and discuss some ongoing operational issues. Here’s a breakdown of the average price of software developers’ services in popular outstaffing destinations.

  • The USA. If you want to reduce your expenses and avoid hiring high recruitment costs, IT outstaffing companies in the U.S. is what you need.
  • With outstaffing, there are no communication barriers between you and your team.
  • On their first day, newcomers go through the onboarding process, get acquainted with a team, gain access to the systems and tools, and become familiar with a project.
  • When hiring an IT professional, they spend less time learning how to make their work compatible with your business as they’re already familiar with your processes.
  • Instead, this will be done by the outstaff company with which you agree on the project’s details and deadlines.

As your staffers might work in different time zones, it may hinder communication. Outstaffing will help you to improve your communication with your team members. The hiring process might take a few weeks to recruit a new staff member. Due to their extensive outreach, recruiting agencies find suitable candidates within several weeks. A recruitment agency shortlists the top candidates after conducting background checks. By talking to the selected applicants, recruiting agencies verify their skills and check whether they are suitable for the job.

How to Find and Hire Outstaffing Company: 7 Steps

So now, as the benefits of IT services outsourcing are clear, let’s speak about the challenges and the mistakes to be aware of when turning to an outstaffing company. This country is a major hub for outstaffing companies. It got a whopping 70.56 points in the US Chamber of Commerce IP Index released in 2020, which means that it’s the safest option among the countries with major outstaffing industries.

Not only do you want to make sure that the person or team you bring on board is invested in your company, but they should also be able to work well with other members of your team. Outsourcing, on the other hand, is when a company uses another company or individual to handle all or part of its business operations. This can be useful when a company is short-staffed or has a high turnover rate. It can also be used to fill seasonal spikes in demand.

There are brilliant software developers in every part of the world. However, not all share your language and cultural practices. When a language barrier exists, it becomes difficult to communicate projects, timelines, and expectations.

What is an Outsourcing Model?

We created a secure, automated platform combining innovative cloud software, leading-edge privacy… Even though the team works remotely, Geniusee strives to supervise the team every single step, not just to ensure the work but also to provide all necessary support. With outsourcing, the employer orders a specific labor service.

outstaff team

It just doesn’t make financial sense to spend four dollars when you can get the same thing for a buck. Over the past decade, Ukraine became a “go-to” country having the greatest number outstaffing company of software developers in the world. These remote developers are well-educated, well-trained, and… We offer all the necessary expertise to design, build and launch mobile & web apps.

Being employed in the IT outstaffing company the specialists are placed at a client company’s disposal for a period of time stated in a contract. Thanks to advancements in technology we have made our daily life more comfortable and got numerous opportunities to make work collaboration extremely easy and efficient. For example, today multinational teams are the norm for most IT companies. Remote co-workers are really full-fledged team members.

Communication barriers

A sound idea is to hire a tech expert, who has sufficient knowledge of the pros and cons of the development companies and the way they influence the project. Such individuals can be helpful through the selection among the plethora of companies and also the hiring process. So, a dedicated team is formed for a special project, but the management of this team is on part of the customer. At the same time, the client avoids all the recruiting and HR-related problems, as well as office and IT infrastructure costs.

It will help your outstaff workers comprehend the systems and values your business has in place. Gauging a service provider’s tech skills level is without any doubt essential, however, it’s not sufficient. Your vendor should have experience in your particular industry to thoroughly comprehend the specific challenges and cope with them effectively. The contractor should also have a profound understanding of your objectives and typical problems unique to your industry.

outstaff team

This can make outstaffing an attractive option for companies that are tight on cash. The difference between these concepts is that outsourcing transfers authority to a contractor to perform a specific business process. As for outstaffing, this is the registration of personnel in the contractor’s staff. In each case, you should only partner with the tech vendors that have expertise in developing solutions for your industry, and are familiar with its requirements for software products. Outsource agencies have different pricing models, with hourly payment being the usual. It covers the management and development expenses, which is why it costs more than outstaffing as the latter doesn’t include management fees.

What is a Recruitment Agency?

With outstaffing, you manage the remote developers directly and have total control over their tasks, milestones, information sharing, and deliverables. However, there’s very little visibility with outsourcing as you might not have access to source codes and some project documentation. Outsourcing allows companies to be very flexible when fulfilling their software development needs.

Unfortunately, it’s not always possible to maintain friction-free communication and get the team on the same page. In this case, the client should invest in secure platforms that would make transparent and timely communication possible. Alongside the peace of mind, lower costs, and full control, outstaffing has a few drawbacks to consider.

When is it better to choose outstaffing for a software development project?

Which one to choose depends on your needs, goals, and capabilities. There is also a certain risk in terms of communication. Some cultural differences, a time difference, as well as a language barrier may lead to misunderstanding and poor communication. Your workflow is smooth and well-tuned, and you have all the scope of tools and solutions needed for efficient communication and task management. Therefore, the outsourcing cost also includes costs related to work management. I needed someone to handle my trucking dispatch and accounting, which I had no knowledge, so I emailed Outstaff.

Outstaffing: The Pros and Cons It

It must include specific and complete information about the rights and obligations of the parties and the services provided. Outstaff development companies provide third-party organizations with their personnel for temporary or long-term work. The peculiarity of this form of recruitment is that employees remain registered to the outstaffing company.

Step 5 – Discuss budget, data confidentiality, and other terms

If you need an expert opinion on software development outsourcing or outstaffing, you are welcome to ask our experts here at TechCells. We are sure that we can help you regarding your concerns, as this is what our core expertise is. At the same time, the client company assigns work and tasks. Thus, there is no need to look for performers for your lice company. Instead, this will be done by the outstaff company with which you agree on the project’s details and deadlines. They select the right professionals from their talent pool for your tasks and requests.

You’ve landed the client that needs one of the cloud solutions you’ve previously developed for them, and you don’t have cloud engineers on your team. In this case, you will augment your team with cloud developers. As a result, you’ll have team members familiar with the client’s IT infrastructure and the needed specialists who will jump into the development process right away. Hiring developers from an outstaffing agency to complete your team gives you peace of mind that your work will be done on time and as expected. On the one hand, they have responsibilities before the outstaffing agency. On the other hand, they are responsible for their part in the client’s project.

The outsourcing agency assigns a dedicated project manager that acts as an intermediary between the client and the developer. The client pays a fixed price per project as initially agreed and doesn’t have to worry about any hardware, environment setup, team composition, etc. Outsourcing — a cooperation model where a client delegates the whole product development cycle or one of its stages to the outsourced team that usually does it remotely.