In today’s fast-developing world distance is becoming a less important factor that determines the availability of labor resources. Now, small companies and large businesses can find and hire their employees online and outsourcing is becoming a new norm in various industries.

In the IT sphere, outsourcing has been a widespread practice for quite a long time already. Due to a variety of outsourcing specifics in IT, this business practice has split into several standalone outsourcing models and one of them is outstaffing.

outstaffing model benefits

IT outstaffing provides diverse benefits from effective cost reduction to quick access to the global IT talent pool. In this article, we’ll look into why many companies prefer outstaffing over other engagement models and what are the benefits of outstaffing IT services that your business can reap.

Why IT Outstaffing?

In traditional IT outsourcing, customers have to hand over their IT-related tasks or software development projects entirely to the vendor. This situation doesn’t work for the companies that want to control the software development process themselves.

Thus many outsourcing companies provide their specialists on the outstaffing model allowing companies to hire and manage remote IT professionals to fill in the gap with lacking resources. The team works only on the tasks provided by the customer and very often uses customer project management systems and communication tools.

Having full control over an outstaffing team, the customer can conduct daily meetings with the team to check the progress on the ongoing tasks, change project requirements any time, or scale up the team to reach the project deadline faster.

With IT outstaffing you can extend your in-house team with highly-skilled specialists whether it’s a short-term or a long-term project. The outstaffing partner will select and allocate the candidates who perfectly match your requirements while the management of the specialists will remain on your side.

Outstaffing Is Growing in Popularity

Outstaffing is a commonly used model among tech companies. They can extend their existing in-house teams by adding more tech specialists with the necessary skills. As a result, tech companies can quickly fill in the gaps in their projects without spending much time and finance on searching, hiring, and training new specialists.

It doesn’t mean that only tech companies use outstaffing as a viable solution to scale up their teams. Non-tech organizations have also started using an outstaffing model to cover their IT needs such as software/hardware infrastructure setup, existing software improvement and new feature development, independent QA testing, and others.

5 Benefits of Smart Outstaffing Teams That You May Have Overlooked

The outstaffing model offers tech and non-tech companies a number of outstanding benefits that allow them to keep a competitive edge in the market, expand faster and, as a result, significantly increase their revenues.

benefits of outstaffing model

Here are 5 outstaffing benefits that make this outsourcing model so attractive for many businesses.

Reduced Expenses

Using the outstaffing model, businesses can significantly cut their resourcing and project costs. It becomes possible due to:

  • a remote working style of outstaffing teams when companies don’t need to invest into the establishment of costly IT infrastructure on their premises;
  • lower labor costs on IT specialists  in such outsourcing regions as Poland, Ukraine, the Czech Republic, or Brazil; in general these countries have lower labor costs on IT services while possessing strong IT skills;
  • absence of additional expenses related to in-house spendings, e.g. tax payments, medical insurances, and others.

Access to Innovations and Digital Expertise

Businesses that come from different industry niches usually require IT specialists with deep knowledge in their area. It often takes much time to find and hire such specialists in-house in the local labor market and that’s where outsourcing companies can help. They have professionals with extensive experience in working with industry-leading companies. Therefore, they know how to work with specifics, solve and prevent possible bottlenecks in logistics, FinTech, eCommerce, and other niches. By hiring such teams on an outstaffing basis, businesses ensure that they receive high-quality services that address their industry best practices.

Besides sharing their expertise, outstaffing teams also constantly upgrade their knowledge by keeping up with the latest industry trends and innovations and implementing them in practice. They can help in-house teams to select the most effective tech stack for creating digital products or choose the best-in-class tools to build and manage customer’s digital infrastructure.

Freedom from Strict Local Employment Laws

When hiring their own in-house IT teams, companies have to follow the employment rules in their countries, which can be rather strict or require additional expenses. For example, businesses need to care about their employees’ paid leaves, security retirement benefits, dismissal laws, and so on. With outstaffing teams, businesses eliminate most of these issues.

Outstaffing providers offer simple team hiring and dismissal conditions. Moreover, these companies are responsible for following all the employment law regulations in their countries.

Faster Time to Market

Many companies hire outstaffing teams to speed up their products’ time to market. Outstaffing teams become particularly valuable when an in-house team is struggling to meet the current project deadlines, or when they need to quickly launch a new project while handling other IT tasks.

benefits of outstaffing

With outstaffing teams, companies reduce their products’ time to market as they don’t get diverted to searching for qualified specialists who could fulfill project tasks successfully. Instead, they address outstaffing providers who can offer them the best programmers particularly fitting their projects, giving them more time to focus on their core functions and processes.

Flexible Teams

The outstaffing model provides companies with full control of the development process in their projects. This way, they can track the quality of the work, simply scale up and down their teams when needed, and improve their talent management initiatives inside the company.

By extending their in-house teams with outstaffing specialists, businesses can quickly add the lacking IT expertise and improve the overall skill and knowledge level of their inner specialists. This can be done by establishing strong cooperation between the external and internal teams.

Summary

The outstaffing model is a popular outsourcing practice that is used by many tech and non-tech companies that want to have quick access to the global IT talent pool while bringing under control all the processes in their IT departments.

Outstaffing helps businesses to cover all the IT talent gaps, reduce their IT-related expenses, improve their product’s time-to-market, enhance their in-house team’s skills, and much more. That’s why outstaffing is quickly gaining its popularity, becoming one of the leading models among other outsourcing practices.

 

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