While the outstaffing company provides services to a customer according to the contract, a customer company pays for them. 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 that reduced the risk of on-site accidents by 70%. Outstaffing removes most of the organizational processes of recruiting employees and ensuring good working conditions for the client.

Respectively, with this approach, you optimize development costs by means of paying only for the services provided. One of the key reasons for choosing IT outstaffing is that a company gets full access to important managerial decisions and resource management. It is better to have a project manager who can assign tasks to hired professionals. IT outstaffing is an outsourcing model focusing on a company hiring a needed team of professionals via a service provider.

What is the difference between outsourcing vs outstaffing?

When it comes to time, outsourcing IT work is often the more efficient option. First, it can take a long time to interview and hire qualified IT employees. Once they are hired, they may need training on specific software or hardware that your company uses. Any business that relies on technology needs to put thought into how they will staff their IT department. The two most common options are to either outsource the work or hire in-house employees. Each option has its own advantages and disadvantages, but one of the most important factors to consider is time.

Main advantages of smart IT outstaffing

IT outstaffing companies offer businesses flexibility in terms of scalability. Companies can quickly adjust development-related costs per shifting project requirements. When working with a dedicated team, you might not get a group of IT professionals with the same loyalty and motivation level. It smart outstaffing can be a real challenge and directly impact the quality of the project development. If people are disconnected from your company’s culture and values, they won’t be motivated enough to provide a hundred percent input. Yet, with all the phenomena can offer, it is still not one fits all solution.

Varied Skillsets

Another major trend in the industry is directly linked to the rise of remote work. Again, COVID-19 accelerated this trend, thus putting outstaffing at the forefront. According to Gartner, about 82% of companies plan to turn to remote work for some of their staff, while 47% of firms plan to adopt remote work for all full-time employees.

Main advantages of smart IT outstaffing

You must know the project requirements and the type of IT professionals you need to complete it. First and foremost, you need to understand what is IT outstaffing. It is a concept showing how companies collaborate with third-party vendors to hire various IT professionals. Everything is established in a manner for a remote team to help you with some projects while you are not burdened with any management-related tasks. Remote developers employed by another company help you with the tasks you don’t have the capacity to do with your in-house team, they are not the same. Recognizing the differences between outsourcing and outstaffing models can help you reveal the best approach for your projects.

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Main advantages of smart IT outstaffing

JOBITT experts have collected all the advantages of outstaffing and are ready to tell you about each in detail. A study by Grand View Research found that spending on outstaffing and outsourcing will exceed the $936 billion mark by 2027. This growth in the outsourcing and outstaffing market is because many companies from various industries need to develop digital solutions. Compared to outstaffing, outsourcing typically sets higher rates. The reason for this is that customer pays significantly more for the whole team involved in the project, than hiring a single person.

Restricted budget of the young tech companies

Good skills, and if there was an issue where we needed special skills they provided that skills to us. With their help, we successfully finished the project within the scope. Say NO to spaghetti code being put into a God-Object and having tons of a1 variables! Our outstaffing programmers develop the code to be clean and easily readable. A company most often entrusts the whole project to the outsourcing agency from beginning to the end. You need to devote some time in the recruiting process to select the right applicants.

  • The IT industry is rapidly expanding, new projects are emerging each and every day.
  • However, the main condition for successful interaction is the ability to correctly set up processes and plan Agile team work.
  • Outstaffing also allows you to scale up or down as needed, without having to worry about layoffs.
  • Outstaffing definition is a model of team augmentation that implies hiring external specialists from another software development company to enhance your own team.

This is done in contrast to hiring in-house full-time employees directly. What’s significant is that a client gets full control over the staff, development process, and the results of cooperation. Identify professionals you hire and guide their activities as per your business demands or requirements of a particular project. Nowadays there are a bunch of tools that help you do that faster which is time-saving and more productive.

Remote Development Team Management: How to Make It Efficient

There’s no need to spread yourself too thin and keep everything in mind. All the payroll, paperwork, and bureaucracy issues will be handled by the vendor. All the required hardware and software is provided by an agency and loads this responsibility off your shoulders. Typically, an outsourcing agency’s work is to translate ideas into reality without bothering the client with irrelevant details or questions. We are implementing innovative digital product development methods to make this process fast and consistent.

Main advantages of smart IT outstaffing

Classic IT outstaffing refers to the usual type of outsourcing where remote programmers or a third-party agency are hired to perform individual tasks or develop entire projects. At the same time, the customer’s capabilities are limited by their own expertise and in-house team skills. Therefore, when a person https://www.globalcloudteam.com/ leaves, their experience is lost, and finding a replacement turns into a long and expensive undertaking. Obviously, this method often lacks structure, transparency, and communication. IT outstaffing provides diverse benefits from effective cost reduction to quick access to the global IT talent pool.

Pros & Cons of Outsourcing

First, you should evaluate their experience in the demanded sphere. Review the agency’s portfolio and services, evaluate the amount and quality of the performed job, and form an opinion about Cost. Typically, European outstaffing agencies are cheaper than those located in the US.