What is IT Outstaffing and How It Can Help Your Business

Once you’re satisfied with the proposed outstaff team, hold further discussions on the fee, confidentiality measures, responsibilities, liabilities, and other legalities. Many startups choose to outsource their projects for these reasons. In the beginning, we’ve provided you with examples of Riseapps implementing these methods. For clarity, let’s introduce one more case – of outsourcing this time. At the same time, you, as a client, will have the possibility to fully focus on your core business activities and the needs of your project. More than a third of small businesses surveyed in Clutch’s 2019 review outsource a business process and more than half have plans to outsource in the future.

outstaffing model

So, IT outstaffing is an efficient method of hiring remote IT staff that suggests collaboration with a third-party company providing you with IT specialists that you currently need. 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.

Outstaffing Pros:

This allows you to hire the best person for your job without being limited by location or availability. After creating a favorable impression with their initial Discovery phase of Dryft’s app, ProCoders was hired for an additional activation. The ProCoders team worked seamlessly with the UX/UI designers at Dryft to create an app that delivered on the user experience they were trying to achieve. The arrangement allowed ProCoders staffers to augment the Dryft staff for as long as they were needed. We help to estimate your project as accurately as possible, but you should understand that even in the most accurate measurements, there are errors.

outstaffing model

The contractor agrees to the terms of the customer, undertakes to deliver software of proper quality on time, and must include all possible risks in the price. A deployed website for your business developed by a company with a fixed price model can cost you up to $250,000. Run background checks to prevent hiring an IT outstaffing company that doesn’t align with your requirements. Clutch allows clients to leave comprehensive reviews and experiences of outstaffing providers. Compare them and choose those that provide consistently good services. Here, it’s essential to find out if the company can provide you with the necessary number of employees with the right skills.

Why Do Businesses Prefer Using these Two Models?

As an outsourcing company with 9+ years of experience, Mind Studios have worked with business owners from all over the world. As a result, we’ve gathered a list of hacks that make the web development process efficient, as well as protect both parties from questionable deals. The transition to a new business model in itself can be stressful for a company; it makes no sense to drag into the future the customers who were a burden to you even at the best of times. Determine the quality of your clients with the Boston Consulting Group matrix.

  • Clutch’s report shows that businesses also outsource to increase efficiency (24%) or acquire expert assistance (18%).
  • Decide which method works best for both parties and agree on them.
  • Commit to the product and give the product more than just the hours spent.
  • Outsourcing and outstaffing are based on a different hiring model and meet different business needs.
  • When you hire IT employees, you do not have to pay for taxes, insurance, facilities etc.
  • Staying in ‘commodity’ keeps prices (and in turn salaries) limited by the market.
  • Possible outstaffing service providers can be found using search engines, business forums, the world of mouth, or specialized platforms like Clutch.

Then comes the time for a technical interview with the client’s tech leads. If an interview isn’t enough to make a final decision, clients give tests to ensure the suitability of the candidate. You can imagine it in the form of the hourly rates or cost+ model. Clients buy an hour of work; the vendor gets their profit from hours sold. However, if you are considering outsourcing, you’ll need to ask yourself different questions.

How to Find an Outstaffing or Outsourcing Partner

A large industrial manufacturing company in Europe decided to develop a solution that could minimize or prevent serious and fatal injuries during construction. The company felt that using the IoT technology would benefit the project significantly. However, they lacked expertise in this area, which resulted in hiring Softengi experts to fill in the talent gaps. Together with the client’s in-house developers, they’ve been able to create a complex Smart Site Safety Solution (4S) that reduced the risk of on-site accidents by 70%. Outstaffing is the most reliable way of hiring remote resources dedicatedly for a project or for a specific time duration. Outstaffing is different from other remote hiring models in different ways as given in the following table.

If you’ve made up your mind in favor of outstaffing, follow these steps to hire a competent IT outstaffing company. Besides wages, you have to pay for hardware, software licenses, social packages, etc. With outstaffing, an oversea company will be taking care of all the administrative duties, relieving you from any unnecessary bureaucratic commotion. Statista forecasted that the IT outstaffing revenue would hit US$395.00 billion in 2023, emphasizing the attractiveness of the software outstaffing model. What is the first thing that comes to mind when we want to add new talent to the existing staff?

#3. Wider varieties of specialists

Here are some examples of industries, developed solutions, and results we brought to our clients. If you are satisfied with the choice of developers, you could enter into further discussion of the process, security, liabilities, as well as any other legal details. As these issues are talked through, it would be best to have outstaffing model them in a written form to avoid misunderstandings. Or do you buy the services of a professional plumber who has the knowledge, skills, and equipment to fix a problem for a reasonable price? Some cultural differences, a time difference, as well as a language barrier may lead to misunderstanding and poor communication.

Is your company ready for an employee who can work from another location? After a formal outstaffing agreement is signed, it’s time to onboard new members of your development unit. Make sure you give them a warm welcome, as well as thorough guidance, project objectives, and milestones to achieve while contributing to your company’s success. Many businesses have turned to the outstaffing model over the years, and these are their primary motivations. Continuous communication allows you to establish deadlines and observe them at each development step that eliminates any inconsistencies. One might think that it’s a good idea to expand the staff in a company by hiring more specialists.

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Luckily, there are numerous digital tools available to help you manage communication despite the time zone differences. With all established criteria in mind, make a list of 10 to 15 outsourcing web development companies. They should match your requirements in terms of budget, location and experience, and also have real reviews and case studies you can actually check.

outstaffing model

The candidates that we will offer to you will have all the relevant skills and expertise so that they can perfectly fit your team and your project. Outsourcing companies are accountable for the ultimate outcome produced by their development team. This means that clients can reject the finished work if they are dissatisfied with the team’s performance, which is not the case with the outstaffing model because the client is in charge. Outstaffing enables software companies to hire more developers without going through a lengthy hiring process or begging for money from the CFO.

Benefits of Choosing IT Outstaffing

With outsourcing, team management happens on the side of the offshore web development agency. First, companies realize the need for the services of a couple of developers, or maybe a whole team, for your software projects. It involves hiring developers along with the terms and conditions, as the end product will be attested with a full guarantee. Earlier outstaffers used to work remotely and we’re often asked to relocate and join the team. During the first meeting with your prospective partner, you can discuss the details of your project and figure out whether the outsourcing company can implement it based on their previous experience.

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