What is IT-Outstaffing?

What is IT-Outstaffing?

IT-Outstaffing is a type of remote employment when a hired IT-specialist carries out all job duties for your company but is officially employed by an outstaffing company. It may sound weird for now, so let’s use an example.Imagine you need a developer. You can go and recruit one yourself or leave it to an outstaffing company.

In that case, you only provide them with a detailed job description and requirement for a new position. Than the outstaffing company finds the best candidate for your needs from their pool of workers. Your job is to only interview him and choose the one that you like best.

Still, this developer will not become your employee in an ordinary way. He will carry out all your tasks and assignments but the outstaffing company will act as his legal employer and will be responsible for wages, taxes, workplace, etc.

There’s a huge demand for IT-outstaffing these days because it is usually cheaper and easier than hiring an IT-specialist directly. The outstaffing model is commonly used by tech startups and middle-sized businesses, but global corporations also use outstaffing a lot.

You may have already heard of outsourcing and probably wonder at this point what’s the difference between outsourcing and outstaffing. Let’s quickly dive into this question.

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What is the difference between outstaffing and outsourcing?

The main difference is that outsourcing usually refers to hiring another company or a team to carry out a certain project and outstaffing refers to hiring individuals to work for your company.

What’s more important is that when you outsource don’t have direct control over the team. Usually, you will keep in touch only with the project manager of an outsourcing company, but when you outstaff you manage remote workers directly.

Also, rates are different. On average outstaffing is 20% to 30% cheaper because outsourcing rates include the cost of daily team management, overheads that the vendor uses to cover the salaries of other employees, and risk management.

What are the benefits of outstaffing?

01

Cost reduction

Outstaffing is much cheaper than having your own IT-department. When you outstaff you don’t have costs on recruiting, taxes, insurance, workplace, hardware, and so on.

02

You don’t have to recruit

This is super important for startups. Outstaffing companies have lost of professionals available for hire right away. It means a quick start without losing valuable time. Also, outstaffing saves you from recruiting incompetent workers because for a good outstaffing company competence of their workers is their reputation.

03

Hire from anywhere

With outstaffing, you aren’t limited to choose from specialists in your area, so you will never fall into a situation when it’s impossible to find a person with the needed skill set and experience.

04

Flexibility

The workload is always different because all projects are unique. One day you may need more people to handle a certain task and the other day your team will just sit back because the workload is too small. When you outstaff you can easily add or reduce team members whenever you want without a long process of recruiting.

When to use outstaffing?

If you need a quick start

Outstaffing saves you tons of time because you don’t need to recruit. So if you need to get something done really fast and it’s a task that doesn’t require a professional team to carry out — go for outstaffing.

If you need help with an ongoing project

If you feel need to reduce the average workload of your team members only for a certain project outstaffing is your savior. You will find a specialist much faster and there will be no need to fire him after.

If the task is simple

As long as outstaffing is cheaper, for any simple tasks that can be carried out solely it’s a solid option. For example, maintaining hardware and software in your office is much cheaper when you outstaff.

Now, If you are still not sure what do you need: hire an employee, outstaff or outsource, we can help you.

We have a lot of experience in consulting businesses on the best options regarding their current needs. Moreover, we do outstaffing ourselves and have a big pool of professionals from top IT-capitals of the world. We have developed our own recruitment process to make sure that our clients get the best workforce on the market.

Even after we find the best candidate we will also continue monitoring his work and checking results to make sure that our clients are getting the level of service they were looking for.

Contact us and we will find the best solution for your needs