IT Outstaffing Model: Cost-efficient Approach to Hiring Remote Talent

The project manager provides the best result at each stage of the process and controls the work on the project. The developers are not accountable for the quality of the final product in outsourcing. Good outstaffing provider has a built-up process of finding and vetting the right developers for each client’s needs. Apart from this main difference, outsourcing and outstaffing have other dissimilarities concerning pricing, management efforts, and payment which we structured in a table.

While the vendor handles payroll, staff resources are committed to you and your IT needs. After the interview, your goal is to choose those workers who will successfully cope with your business task. You need to define the project requirements and give all the necessary information to the developers or QA-engineers you will work with.

Benefits of the outstaffing model

With Outsourcing, by contrast, the outsourcing vendor or agency is in charge of overseeing and managing all team activities, and is responsible for the final product that the outsourced team delivers. IT Outstaffing service provides businesses with access to a large talent pool of experienced, devoted experts who will focus only on their projects. You may hire top professionals without spending a fortune on employee training programs.

Using this strategy, businesses may recruit individual highly talented developers from external vendors to briefly expand their in-house departments over a project period. With an organization dedicated to having a robust range of tech technologies, Quintagroup also provides this model of cooperation. Outstaffing software development provides additional freedom. If you detect a deficiency in human resources, it is simple to add new abilities to increase total production.

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So, to protect yourself you should deal with only trusted outstaffing companies, carefully study all the terms and conditions of a non-disclosure agreement, and engage experienced lawyers if needed. Compared to outsourced specialists, outstaffed ones work exclusively on a client’s project. 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. The first phase of collaboration begins right after the client chooses an outstaffing vendor and makes initial contact. During the opening phase, the client tells about the basic needs of the company, and the vendor says which of those can be covered by their means.

In general, outsourcing is when you have an idea, but there is no way to implement it on your own. You don’t want to bother and establish a whole IT department, instead, you just want to come to another company with your idea and get an application or website ready, paying a certain amount for it. Consider these recent statistics from Grand View Research, Inc. We cooperate with our clients according to three main cooperation models.

What Is An It Outstaffing Model?

The quality of code you get from outsourced coders is much better than that from amateur developers. The reason for this is quite obvious – companies hire only experienced developers with good knowledge and skills as they are worried about their reputation. If something goes wrong with a particular person, you can just fire them. However, in terms of an outstaffing company, if such a situation happens, then it loses its reputation, trust among clients, and, this way, the whole business. Also, with the lack of client control in the outsourcing model, the client cannot bet on the team’s level of dedication towards their project. Outsourcing means a company gives their idea to a remote development team — and they deliver a final digital product.

Outsourcing and outstaffing are the practices largely widespread and approved. They can speed up the development process, save your costs and allow you to utilize the precious experience of IT experts working from anywhere in the world. Frankly speaking, outstaffing is hardly sufficient for companies striving to attract investors. The lack of your own highly professional staff can be a deal-breaker, as investors usually pay particular attention to a team working on a project. Partnership with an outstaffing company may be perceived as a warning that a company lacks the expertise essential for the successful realization of your brilliant idea. Having outstaffed specialists in a team, you discuss with them some ideas sharing confidential information.

Now, let’s move to the advantages and disadvantages of outstaffing. Assessing consistency, quality, and pace of your development project might not be easy, as you don’t have direct access to your team. Nowadays, IT outstaffing is a widely used business model, and there are many reasons for this. There are many benefits that you can reap from outstaffing. After the client shares their thoughts on the CVs of potential team members and approves some of them for further communication, the recruiter schedules calls with the selected candidates. Traditionally, candidates go through two interview rounds.

Compared to outsourcing or hiring somebody in-house, outstaffing is significantly cheaper and great for decreasing costs. Hiring an outstaffer simply means taking in the temporary employee you can manage on the same level as your regular team members. Outstaffing allows you to have full and direct control over the whole process of completing the task.

Often, they manage the hired team along with their own; the payroll is handled by a contractor , though. So, outstaffing is an efficient method of hiring remote staff that suggests collaboration with a third-party software outsourcing and outstaffing company providing you with IT specialists that you currently need. Being employed in the outstaffing company the specialists are placed at a client company’s disposal for a period of time stated in a contract.

What is outstaff?

You don’t have time to train a team, or a hot schedule doesn’t allow your team to be focused on your product only. Since the team is focused on your product, https://globalcloudteam.com/ there is no need to be distracted by less important tasks . As a rule, managers will help you draw up a plan, select specialists, prepare a work plan.

This could be due to a difficult choice between software outstaffing and outsourcing or simply between outstaffing and trying to slog their way through finding and hiring extra developers locally. An outsourcing provider usually works on a project-based business model which means that most likely the client entrusts the outsourcing company the whole project from A to Z. The client rarely has access to the development team itself and those people who complete all the work on the project usually work on several projects at a time. There are many options to consider in the outsourcing vs outstaffing debate. Outstaffing is better for clients with significant, long-term needs that need day-to-day control of their vendor team.

Businesses are always in a race to scale their operations, expand their market share, and grow their customer base. They want to do this as quickly as possible without compromising quality. That’s one of the reasons why they outsource or outstaff their IT needs.

Currently, we are focusing on healthcare, wellness, tourism, and entertainment industries, where we have a lot of successful cases. In general, outstaffing is about 20-30% cheaper because in this case you are not charged for daily team management. Next, the recruitment process is held on the side of the outstaffing vendor. Their recruiter uses candidate portraits and makes pre-screening calls with suitable candidates. When a candidate matches the corporate culture of the client and their experience is relevant, the recruiter sends their CV with comments to the client and waits for feedback.

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Your partner will set up a sitting space, development environments, provide all the tools needed for communication and tracking. All the communication, including discussions, updates, phone calls, and other interactions, are direct, and you can rely on your team since they are hired by you only. After working with other dispatchers from who knows where, I decided to try out Outstaff. First two weeks we had to break in, but soon after I was satisfied with their results. Comparing to other companies, they have trained dispatchers that know their job. Also their setup is very professional, providing organized files and operations.

• The first thing to do is determine your needs and budget.
• This model allows companies to control their costs and enable them to become more flexible when it comes to software development.
• Sometimes it isn’t easy to cover all the needs of a company with only internal specialists.
• Staff resources are dedicated to you and your IT needs, while the vendor handles payroll.
• Let’s have a closer look at what outstaffing is to know the distinction.

It’s conducted by the client’s managers with an aim to see the cultural fit of the candidate. In the late 90s, the business world faced a new fast-growing trend — outsourcing. The American tech industry pioneered in trying out the new approach to doing business with the help of third-party vendors. Since then, nearshore and offshore partnerships have been getting increasingly common for both big corporations and small startups. The best method to avoid this issue is to define all the main development tasks in a single shared document with full descriptions.

IT Outsourcing and Outstaffing services help to reduce costs

However, it’s not uncommon for companies to hire project managers together with the remote team through an outstaffing vendor. BESTARION, we provide both outsourcing and outstaffing services. We provide our customers with the model that best meets their business needs. We choose the model based on our clients’ skills and business objectives. Our software development outsourcing firm is always willing to assist you with your software development project.

You’ll need the turnkey convenience that outsourcing provides. Considering information technology outstaffing services, it’s important to understand the ins and outs of working in an outstaffing model and how to manage your outstaffing team. A wider, more interchangeable variety of resources is available. When you work on an outsourcing basis, it is easier for your vendor to bring in various specialists to your project for just an hour or two.

For this reason, we have created an analytical guide that explains what outsourcing and outstaffing is and what the main differences are between them. This article will also help you figure out which model best fits your business needs and how to find high-quality collaboration partners to outsource your IT projects. Today it is a common practice to look for IT experts outside own organization and even country. The main mission of an outstaffing company is to supply your current staff needs. Therefore, its recruitment team does its best to provide you with specialists that perfectly match your requirements. The searching process goes on until specialists with the required qualifications and experience are found.