The Ultimate Guide to IT Outstaffing: Benefits, Challenges, Decision-Making Tips
With the ongoing talent shortage remaining an acute point for business leaders across industries, forward-looking companies are looking for optimized solutions. IT outstaffing, which is a form of staff augmentation, is a viable solution that allows businesses to quickly source developers and other specialists to address current tech-related business goals.
In this article, you will learn what IT outstaffing is, how it’s different from outsourcing, when you should opt for outstaffing, and how to efficiently collaborate with an outstaffing company that offers Remote In-Sourcing® services.
What Is IT Outstaffing?
IT outstaffing is a remote staffing model that allows you to get qualified team members from an outstaffing agency. The agency can either provide you with a single specialist or a development team that will work alongside your in-house one. The collaboration often implies the long-term involvement of external team members that are dedicated to your project only until the contract is finished.
The model is rather similar to regular recruiting. However, in this case, you don’t spend months finding a perfect-match employee; instead, you’ll choose from experienced candidates with proven professional backgrounds.
Read also: What Will I Get from an Outstaffing Company?
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.
Speaking of project management, it remains on your side. Your involvement in the development process is high, which implies you need a supervisor to monitor and adjust teamwork.
Outstaffing vs. Outsourcing: What Is the Difference?
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. In other words, outstaff vs. outsource is getting a developer or several ones joining your team vs. getting a whole software development team.
Often, outsourcing implies a short-term collaboration for a single project, while outstaffing — a long-term one. You won’t need any technical expertise in outsourcing because management is on the vendor’s side. However, this is often more expensive compared to attracting external staff.
At the same time, with a larger check and little-to-no management, the responsibility for the project fulfillment and delivery is on the outsourcing partner. This allows business leaders to focus on their core business, without shifting the focus to IT-related activities. This is often especially beneficial for non-technical industries.
When to Use Outstaffing Services?
If you have little-to-no in-house technical expertise but need a digital solution to foster your business growth, then software development services or outsourcing is a good choice for you. However, if you have an in-house team, you may face a challenging situation in which outstaffing is the right solution to help you meet current business needs:
· You need professional guidance to innovate and overhaul your internal technical processes. An expert Remote In-Sourcing® team can help you rethink legacy processes and implement industry best practices.
· You lack the talent to deliver the project on time. By quickly expanding your team with high-quality employees, you can meet turnaround time requirements.
· You fail to apply emerging technologies and, therefore, struggle to innovate. If you source developers proficient in specific tech stacks (for example, AI/ML, IoT, etc.), you get reliable team members able to utilize advanced tech.
· You lack employees with relevant expertise or want to decrease high talent acquisition costs. Outstaffing allows you to access a wide talent pool and get yourself an expert at an affordable price, even in times of talent shortage.
· You have no time to proceed with tiresome HR routines when sourcing a candidate. You can forget about numerous interviews and endless CVs when dealing with an outstaffing agency: share your requirements and review some of the best-fit candidates.
· You need a more affordable solution than hiring an in-house developer. Benefits, taxes, equipment, recruitment fees, and other expenses take up a large share of your budget, which may become a financial burden. In the case of outstaffing, you just pay an hourly rate only. The rest is the vendor’s responsibility.
Advantages of Modern IT Outstaffing: The Remote In-Sourcing® Model
Here are 3 main benefits enterprises and SMEs reap when turning to an outstaffing model:
1. High-quality deliverables and increased innovation potential. Outstaffing allows you to get talented engineers with a proven professional background in the chosen technical niche. This lets you spice up your team with experts in emerging technologies and promote innovation.
2. Quick and easy filling of talent gaps. Unlike regular recruitment where 86% of CIOs face more competition for qualified experts, outstaffing agencies provide you with access to talent pools to facilitate the expansion of existing teams. The talent pools consist of employees with a proven professional background, alongside industry-leading knowledge and skills.
3. Reduced costs with increased capacity. You avoid typical HR expenses when you hire a software engineer or several with the help of an outstaffing consulting agency. Furthermore, the candidates start working immediately, saving you on the onboarding and training. The developers are already trained to meet your company standards, which facilitates your team allocation process.
The Cost of IT Outstaffing Services
If you have decided to outstaff, the only expense you incur is the hourly rate of a specific engineer. However, you may still face other options, like project-based payment.
The rates significantly depend on the developer’s experience, tech stack, and region. The latter often can become the deciding factor in the final price. For example, according to Glassdoor, a Senior Software Engineer in the USA makes around $150,000 annually. At the same time, the annual salary in France drops to $71,000. In Armenia, it’s almost the same — around $70,000 per year, while in Moldova — approximately $50,000.
A similar tendency is applied to hourly rates: they are higher for engineers from the USA and Europe, while more affordable if you consider off-shore specialists from Eastern Europe. Yet, it doesn’t mean poorer qualifications or skills. Intetics, as a reliable Remote In-Sourcing® partner, ensures all specialists are high-level certified professionals aware of industry best practices.
The Key Steps of the IT Outstaffing Process
Here are the key stages when you proceed with IT outstaffing:
· Identify talent and process gaps. The more details and objectives you provide, the better talents an outstaffing agency can attract. It takes around 2 weeks for Intetics to allocate the required specialists.
· Meet your team and assign work. Start to manage new team members by assigning them tasks and explaining to them your project objectives, KPIs, etc.
· Specify standards and expectations. New engineers are flexible enough to adjust their work to your standards. It’s best to discuss the requirements and expectations before they start working.
· Collaborate with new team members as if they are your in-house employees. All the outstaffed engineers are completely dedicated to your project, so you won’t notice that they come from an external company. While the contract is ongoing, they are part of your team.
How Can Intetics Help?
Intetics, as an experience Remote In-Sourcing® company, offers you extra talent that is 100% dedicated to your project, is a perfect match for your technical and resource needs, and allows you to reap the benefits of 28+ years of expertise and process enhancement. By dealing with an international company that has a global presence, you can source experts from various locations to ensure they can collaborate with your team from a convenient time zone to satisfy your and your customer’s needs.
You can source talents with relevant professional expertise in specialized IT domains, including AI/ML, IoT, GIS, and many more. What is more, you can find developers with extensive expertise in your industry: Intetics offers professional software development services in 20+ industries. Regardless of the complexity of your digital solution, you can be sure that it’ll be of high quality to foster your business growth by optimizing processes, enhancing current offerings, or improving customer service.
Want to enrich your team with expert developers who have proven professional records? Source talent from an experienced outstaffing provider that has polished the processes and now offers Remote In-Sourcing® — a model with a refined outstaffing procedure to maximize your business benefits.