Bringing a business idea to life often requires SMEs, startups, or enterprises to hire an experienced team to deliver their projects successfully. But they may face a significant problem related to the tech talent shortage. For instance, the ManpowerGroup survey shows that 69% of U.S. employers struggle to find qualified staff.

Fortunately, opting for IT outstaffing services can help organizations augment their existing team with the required expertise. Below, we will analyze the basics of smart outstaffing and its most critical advantages, and we’ll also provide a helpful guide on choosing a reliable outstaffing agency.

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What Is IT Outstaffing?

IT outstaffing services refer to a remote hiring model where an outstaffing company provides a dedicated team or individuals to the customer for its software development project. These specialists work only on the client’s project for the period defined by the contract. Although the customer has complete control over the outstaff team, it doesn’t have to deal with any operational issues.

it outstaffing services

 

When to Use Outstaffing Services?

The most common situations when businesses start working with an IT outstaffing company are the following:

01

3-12 months of project duration.

If necessary, you can easily add to or disconnect new specialists from your project with a remote staffing agency. So, if you require a UI/UX designer for three months, you can get one for this period of time. If you have to hire a developer until the project’s end, you can get him or her as well. Since 3-12 month projects often focus on fast scaling, market share expansion, and customer base growth, IT outstaffing helps you reach your goals quickly, and without affecting the quality of your project.
02

A shortage of local tech talent.

According to a McKinsey survey, 87% of global senior executives say “their companies are not adequately prepared to address the skill gap.” But with IT staff augmentation services, you can recruit talent with excellent tech expertise, even when it is considered relatively rare. For example, you may gain crucial benefits from DevOps staffing or security engineers provided by your outstaffing partner. These experts can be from different outsourcing destinations, such as Latin America or Eastern Europe for example.
03

A need for time and money savings.

An outstaffing business model helps clients avoid hidden costs, such as office rent, hiring costs, insurance, extra bonuses, etc. In this case, your company only pays for the developers’ rates. That allows clients to focus on more critical business tasks.

IT Outstaffing Advantages

Using IT outstaffing services provides businesses with many significant advantages and thus helps them stay competitive, scale faster, and increase revenue. Here, we will analyze the top-five benefits of outstaffing that make it a perfect option to choose.

it outstaffing services pros and cons

 

#1 Access to High-Quality Digital Expertise

Organizations from various industry niches always need experienced IT specialists with the appropriate knowledge in their field. How to prevent fraud in the supply chain, store patients’ data, or build an app that analyzes insurance-related data and comes up with a prediction? All these cases can be covered by experienced software developers and the appropriate experts.

And since finding and hiring these specialists in-house is often challenging, IT outstaffing services can really come in handy. A reliable remote staffing agency always has professionals with vast experience in solving common industry challenges.

Thus, they understand the specifics of the customers’ business and know how to address and prevent potential issues in fintech, healthcare, eCommerce, etc. With the use of smart outstaffing, organizations ensure that they get first-class services facilitating best practices in their niches.

Apart from sharing expertise, specialists provided by outstaffing companies continuously upgrade their skills. That helps them to keep up with the hottest industry trends and innovations and know how to implement new technologies in practice. Ultimately, they can assist clients’ in-house teams in choosing the most efficient tech stack to create digital products.

 

#2 Unlimited Control

The good news for businesses considering IT outstaffing services is that they get complete control over the hired specialists, the development process, and its outcomes. This allows them to manage the hired staff directly and much more effectively. Today there are plenty of collaboration tools ensuring faster and more productive project management.

In addition, an IT outstaffing model can assist you in tracking the work quality, scaling up and down your teams if needed, and improving the talent management policies inside your company. Meanwhile, extending your in-house teams with staff augmentation services not only helps fill the gap in IT expertise, but also enhances the skills of your in-house team. All you need to do is establish strong cooperation between in-house teams and the remote staffing talent.

 

#3 Faster Time to Market

Speeding up hiring processes is among the top-three recruitment-related priorities for many companies. That is because they aim to accelerate their solutions’ time to market.

Partnering with an IT outstaffing company is particularly advantageous when your in-house team has problems meeting the current project deadlines. Or your business may need to launch new projects and handle other critical IT tasks simultaneously.

With IT outstaffing services, organizations obtain faster time to market for their products. They do not need to search for experienced tech specialists who can deliver the project successfully. Since an outstaffing agency is responsible for offering top developers to fit specific project requirements, clients have more time to deal with their core operations.

 

#4 No Need to Follow Local Employment Legislation

When hiring an in-house IT team, each business must follow the employment regulations in its own country. But such legal rules may be stringent or require companies to pay additional expenses, which is often challenging, time-consuming, and costly. For instance, companies must deal with the workers’ paid leaves, retirement benefits, dismissal rules, etc.

However, when partnering with a remote staffing agency, you will obtain a simple team hiring process and also proper dismissal conditions. After all, IT staffing agencies cover all the necessary employment requirements in their respective countries.

 

#5 Reduced Costs

Numerous companies undoubtedly opt for IT outstaffing services because of the chance to reduce their resourcing and project costs. What makes this possible?

 

  • Remote staffing does not require organizations to invest in expensive on-premises IT infrastructure, office facilities, administration, and HR, etc.
  • Lower labor costs allow business owners and startups to hire skilled and reliable tech specialists. Latin America and Eastern Europe are the most popular regions to find an appropriate IT outstaffing company. For example, Ukraine has evolved as the perfect outsourcing and outstaffing location in recent years.
  • Clients can forget about paying extra expenses, including taxes, medical insurance, pre-payments, etc. All of these costs will be covered by your IT staffing vendor.
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Drawbacks of Using Outstaffing Services

Although software outsourcing and outstaffing are widely used models, both have their shortcomings. For example, the critical disadvantages of using IT outstaffing services are the following:

01

Communication problems.

When working on software development projects, there can be a misunderstanding of tasks between your in-house and outstaff specialists. In this case, the cooperation suffers. However, convenient collaboration programs like Asana, Jira, Trello, Slack, etc., help maintain appropriate communication.
02

Motivation issues.

When you hire in-house employees and outstaff talents, you may struggle with underperformance. That is because outstaff team members can lose motivation since they do not obtain various benefits and bonuses typical for in-house teams. How to address this? Cooperate with reliable outstaffing companies that take care of all such nuances and provide their employees with a great benefits package.
03

Higher responsibility level.

The responsibility factor is increased if you have decided to opt for IT outstaffing services. Your organization has complete control over the hired specialists and should guarantee the appropriate workload , which may be difficult sometimes. But with tech-savvy experts on the team, you can ensure effective project management will result.

Outsourcing Vs. Outstaffing: What Is the Difference?

When comparing outsourcing vs. outstaffing, the key difference is that the first provides the vendor with the authority to do specific tasks or business processes due to the contract. In the second case, the client hires talent from an IT outstaffing company, assigns them tasks, and controls the implementation. But such talents are registered as the vendor’s employees.

Below, we have briefly mentioned some more critical differences.

OUTSOURCING OUTSTAFFING
Tech Expertise Creating requirements is all you need to do. It can be done together with the development team during the discovery phase. You should have enough tech skills as you manage the project.
Cost More costly because the vendor performs the entire scope of work, including project management, QA testing, design, etc. Cheaper since the client performs many project-related tasks on his own.
Responsibility Product ownership. Full responsibility all over the project management
Management The vendor’s project manager manages the team. The customer manages outstaff employees personally or by an internal project manager.
Time Outsourcing requires time to create specifications and build the team. Kick off is faster, but the client’s project specifications should be prepared in advance.

How to Find a Reliable Outstaffing Company

When browsing the Internet, you will see numerous companies providing IT outstaffing services. They can help your organization adopt this model to your business processes and obtain the mentioned benefits. But how to select the right partner to reduce the potential outstaffing drawbacks? Below, we have created a checklist to assist you in your search.

 

The Key Steps of the IT Outstaffing Process

If you prefer outstaffing in Eastern Europe and partnering with DOIT Software, the process will include the following stages:

it outstaffing services process

01

Initial contact.

You send your request and share your project details using our website or via the email: request@doit.software
02

Intro call.

We get to know each other better and discuss your project in depth.
03

Sharing requirements.

You determine the positions with necessary skill sets and share your specific expectations such as years of experience, the required tech stack, etc.
04

Shortlisting candidates.

Our team conducts the talent pool analysis and selects the best developers depending on your requirements. We also provide interviews and evaluate technical test tasks done by candidates.
05

Interviews and selection.

Together with you, we do some online interviews and talk with the strongest pre-selected engineers. After that, you select the best candidates to get started with.
06

Integration into your team.

The chosen candidates are ready to become part of your project through our company. We sign all docs, and the onboarding process starts.
07

Ongoing support.

As an outstaff IT company, we assist your business and address all administrative issues.

Where to Find an IT Outstaffing Partner?

So you have decided to use IT outstaffing services. But where should you find a reliable, experienced partner to meet your project needs? Here are some helpful resources:

01

Start by googling the B2B network websites of tech companies.

The most popular ones are Clutch, IT Firms, and GoodFirms. They aggregate valuable information regarding outstaffing (Eastern European companies are also included), so you can analyze the available ratings and reviews.
02

Read industry-specific publications.

For instance, Gartner, Forrester, and WhatNews regularly publish research papers that mention the market leaders.
03

Use LinkedIn.

Many companies promote their IT outstaffing services on LinkedIn. Thus, you can check their profiles, learn about their experience and employees’ number, and read their content.

Ultimately, you can always find an appropriate IT outstaffing company depending on your business partners or customers’ recommendations.

When it comes to IT outstaffing, Eastern Europe is among the most popular destinations.

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How to Evaluate IT Outstaffing Companies

When evaluating your potential IT outstaffing vendor, you should consider the following critical factors to ensure that they will meet your business requirements.

01

Analyze their Previous Projects

Today, almost all IT vendors have portfolios describing their previous projects. Analyzing them helps you to better understand the company’s expertise in providing IT outstaffing services and decide whether the particular vendor can work on your project.
02

Check their Market Reputation

You should be confident that your partner has an appropriate market reputation and can deliver your project on time. Thus, a good practice is asking for customer references and success stories. Also, you can explore reviews and feedback on the sites mentioned above (ie., Clutch, IT Firms, and GoodFirms).
03

Learn about the Recruitment Process

Knowing your potential vendor’s talent pool coverage and search strategies is vital. That allows your business to understand whether or not you can rely on its IT outstaffing services in the future. After all, scaling up your remote team is often crucial for your company’s growth plan.
04

Pay Attention to the Time Zone

Differences in time zones can bring excellent advantages to your organization. For example, if your project requires 24/7 support, you can select vendors from various overlapping time zones. In Eastern Europe, software development services are also popular because of this.

Efficient Collaboration with Remote Developers: Tips and Tricks

it outstaffing services with remote developers
Managing remote developers undoubtedly differs from managing your in-house team. Thus, when using IT outstaffing services, you must ensure effective cooperation with augmented personnel. Here we have briefly described a few trips and tricks on how to do that.

01

Use project management software.

Such software tools help make your project management more straightforward. Using the solutions mentioned above (Asana, Jira, Trello) allows for checking project progress, assigning tasks, and setting deadlines. Also, engineers can receive relevant notifications within these programs.
02

Create development-related documentation.

Your new team members should continue working even if they do not know how to complete a particular procedure. To avoid such a situation, you must document tasks and internal processes, provide all team members with access to this information, and ensure smooth onboarding.
03

Utilize video conferencing tools.

Video calling apps like Zoom can help build better relationships within your team. So you should leverage them to promote a sense of team cohesion.
04

Conduct regular meetings.

These meetings let team members feel involved and discuss various project-related issues and challenges. Therefore, you can collect valuable feedback and respond to emergencies quickly.
05

Adopt time management practices.

IT outstaffing services require the customer to plan daily and even weekly tasks in advance. That helps structure the team workflow more effectively. For instance, you can adopt rotating shifts for both your in-house and augmented developers.

Conclusion

When deciding whether to outsource vs. outstaff, many companies prefer the second option. All because IT outstaffing services provide excellent results due to full team dedication to projects. After all, more and more businesses have started hiring remote teams to deliver their projects. So, if you do not want to worry about where to hire high-quality developers and what taxes you should pay for them, opt for IT outstaffing services.

Therefore, get in touch with DOIT Software to augment your team with additional expertise. With staff augmentation provided by DOIT Software company, you will get significant benefits:

01

The perfect fit.

90% of our candidates pass probation, while over 70% of staff work on customers’ projects for more than 12 months.
02

2-4 weeks.

The time it takes for us to find the best specialists for your project.
03

No recruitment costs.

Your organization only pays the hourly/monthly rate of our top talents.
04

Free replacement.

We replace hired developers if needed and facilitate knowledge transfer.

Freequently Asked Questions

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What is outstaffing?

Outstaffing is a remote staffing model where the IT vendor provides the customer with additional resources, one or a few developers, or even a dedicated team.

What is the difference between outsourcing and outstaffing?

IT outsourcing means delegating business tasks or processes to external software agencies. In this case, communication is limited, you get weekly/monthly reports and project demos from a project manager. Meanwhile, IT outstaffing services provide clients with complete control over the team, although it is officially registered as a vendor’s staff.

What are the benefits of IT Outstaffing?

The most critical advantages of IT outstaffing services are the access to a global talent pool, full control over the team, faster time to market, cost reduction, and the absence of legal and administrative issues.

What is the difference between managed services and staff augmentation?

Managed services require the IT vendor to deliver a particular outcome (for example, a mobile app). In the second case, the IT vendor provides software engineers fully dedicated to your project.

VITALY MAKHOV,
CEO @ DOIT SOFTWARE
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