Published on June 25th, 2020 | by Bibhuranjan0
The IT Outstaffing Model: an Approach to Hiring Remote Talent You’ll Want to Try
Outstaffing is a procedure for employing new members for your business indirectly. There are reputed out-staffing companies available globally, whose main purpose is to provide the ultimate services of retaining, staffing, and overseeing some significant full-time talent for your company. The team will further cover some of the legalized aspects of cooperation, IT support, and even workspace servicing to the team members of the out staffed companies. They will be paying their salaries, conducting the HR procedures, and recruiting some fresh faces and new talents for the upcoming job role. So, they are literally forming the gap between companies and employees.
More about this term in detail
In some parts of the world, this term outstaffing is known as contracting, and in others, it is known as offshoring, subcontracting, or even talent outsourcing. You are literally hiring contract workers by procuring help from a notable company, known to cover the business’s HR duty on behalf of big or small firms.
The reputed out-staffing companies have years of experience in staffing client’s teams with specialists. So, the required business owner will send these companies detailed information about the kind of employee they are looking for along with job description, salary bracket, and more. Based on the acquired information, the company will start working on procuring the best candidates for the firms. Not just for a temporary call, but these outstaffing companies can easily select employees for full-time job fulfillment. Upon presenting new talents, these outstaffing companies will receive a commission based on the number of employees.
In terms of classical outsourcing, the client will get the opportunity to partner with an outsourcing vendor, who will take the entire responsibility to manage talent and implement the project. Therefore, the outsourcing rates will often address costing of daily team management, salaries of other employees, and also focusing on risk management. Therefore, the outstaffing rate always remains around 20 to 30% lower than the outsourcing ones.
Why are more people into outstaffing these days?
Previously, people used to focus on outsourcing services because of saving some bucks. But with time, this outsourcing model came up with various flaws. With poorer motivation, lower code quality, and a poorer understanding of business model among the vendors’ employees, people started ignoring the value of outsourcing. Even missed deadlines, unpredictable end results, and inflated budgets are some of the other common issues among outsourcing companies.
Therefore, people thought of giving outstaffing a chance to stand. It came out as a scene for hiring some remote talent. Even though it remains technically outsourcing, but this method provides clients with enough control over the product. For that, the clients are allowed to manage remote workers in a direct manner. The SaaS companies, middle-sized businesses, tech startups, and global companies are moving toward by taking the help of this outstaffing service.
The core benefits of working on
Businesses, whether big or small, are heading towards outsourcing because it can easily cover the growing talent shortage, which is otherwise making it difficult for tech firms to grow. IT outstaffing can always suit the major technology firms, whose main purpose is to extend their present tech team quickly. The main purpose over here is to keep the ultimate control right over projects and talents.
- The client company over here will have the tech expertise always by their side for managing an extended team. At the same time, the service provider from IT outstaffing company will look to cover other tasks with ease.
- But, it is not that uncommon for the companies to start hiring project managers with a remote team, all through the outstaffing service provider.
- The main difference between the IT outsourcing model and the outstaffing model is that with IT outstaffing, the client gets the opportunity to manage distributed teams directly. Here, the client will take entire responsibility for delivering products timely and maintaining its quality.
- When it comes to outsourcing, it is always the job of the vendor to manage a team and take care of required planning. They will start tracking activities that lead to successful product delivery.
- The vendor in outsourcing will be managing the technical team daily. In most cases, the vendors end up staffing their teams with existing engineers, which may not always work.
Go for the advantages
Thanks to outstaffing, the clients do not have to look for any remote IT specialists anymore. The vendor will take the opportunity to fill up the client’s project with its own IT talent on a sub-contracting basis. The clients do not have to focus on employment taxes or payroll of remote employees anymore. Moreover, the rates are always on the lower scale than the outsourcing model, because the outstaffing companies will exclude the costing of overheads and risk management.
You have the outsourcing vendor, covering administrative processes like recruitment, payroll, and more. It will help the clients to concentrate well on managing the current product delivery team.
The perfect way to optimize present development costs
Right within this outstaffing model, you get the opportunity to have a remote team without opening a new company branch or working on a remote development office. Being a client, you do not have to hire lawyers, recruiters, facility managers, and accountants. They are already being part of an outstaffing vendor and taking complete care of operational work. At the same time, you get the opportunity to implement internal based corporate policies and culture with the help of current infrastructure and proper expertise of the outstaffing provider.
Focusing on the outstaffing cost:
To be very honest, it is really hard to calculate the average rate revolving around out staffed technical workers as the rates are subject to vary from one specialist to another. At the same time, the outstaffing cost structure will always remain transparent. It helps in providing a net salary of the developer and covering vendor fees.
After setting up a meeting with the outstaffing companies, there will be a detailed explanation of the workshop goals before finalizing on the recruitment process. The entire task is well-covered in multiple steps, and you get to choose whichever IT outstaffing model you want.