If you are interested in finding out what is outstaffing, you probably need help in your software product building. This business model allows companies to incorporate extra IT experts into their domestic IT teams. The specialists with the required skills are integrated directly into the part of the team, which faces the lack of particular expertise. The external developer works under the complete control of the team lead and follows processes and workflow as a full-fledged employee.
IT outstaffing services with a reliable partner can reduce the cost of product development by 20-40% compared to in-house operations. It makes budget saving one of the top reasons why businesses choose to outsource. We describe other reasons, benefits and peculiarities of the outstaffing model in this article.
Why Do Businesses Choose This Model of Cooperation
As outstaffing definition says, this model of cooperation helps to integrate extra workforce into the company’s operations quickly and on a contract basis. Let’s see, what goals are behind the need to adopt an external workforce:
- Access to a limitless talent pool. Software outsourcing vendors who also provide businesses with individual developers have broad candidate bases. You choose from different locations and pick exact matches in skills and expertise.
- Optimized expenses. You hire extra hands on a contract basis for the determined period of time and avoid overheads caused by hiring full-time in-house engineers.
- Agile projects. If you utilize agile methodology, your project crew might need extension at any moment of work. Outstaffing offers easy and quick adjustments.
- Focus on the core tasks. Additional developers reduce the burden of extra tasks from the core team. Your in-house engineers work at the first-priority tasks while extra hands do side quests.
How Does IT Outstaffing Model Work
The IT outstaffing covers particular business needs in team extension. What’s the difference between this and other models? It lies mainly in work organizatin and processes. Check the frameworks of different models, before choosing the one for your business.
The outstaffing model follows the straightforward framework:
- Requirement analysis. You identify the specific roles and their skills needed to empower your team. Do it yourself or involve help of partner’s BAs.
- Talent acquisition. Your IT partner uses their recruitment potential to find a perfect match for the given requirements.
- Onboarding. The vendor’s PMs help to onboard a new team member and integrate them into your processes.
- Collaboration. As a client, you keep a complete control over the project. The external employee is integrated into your team and functions as it’s organic part.
- Support. You pay attention only to tasks or projects handled to an engineer working by outstaffing model. Administrative tasks like payroll, contract, and compliance are covered by the service provider.
Pros and Cons of Team Extension
According to Statista, the global outsourcing market doesn’t stop to grow. An outstaffing definition denotes that this model of work is a part of outsourcing, being more narrow though. In general, global IT outsourcing market reached $92.5 billion in 2023, and continued its growth at a compound annual growth rate (CAGR) of 6.5%. Such growth is expected to continue up to 2030. It means that more businesses are ready to invest in such model of cooperation.
Mostly they are attracted by the advantages like:
- Cost-effectiveness. Outstaffing model gives access to tech talents from regions with lover hourly rates of engineers. E.g. flourishing tech hubs of Eastern Europe.
- Flexibility and scalability. This model is perfect for Agile approach and gives you possibility to scale your team whenever you need for the required period.
- Reduced administrative burden. As soon as you have signed a contract with your IT partner, you don’t need to worry about recruiting, onboarding and support of the workforce. You take care only about tasks delivered.
- Specialized expertise. The entire project could be threatened by the lack of an internal expertise. You don’t have to stick to your internal capabilities, when a perfect match is at arm’s length.
In software development, there is no magic wand to cover needs of everyone and fit every project. Considering the way to build your digital product, mind the disadvantages of this model:
- Communication challenges. Cooperating with a remote employee, you will face obstacles like non-perfect language, time differences, cultural divercity. Be prepared to handle all of them.
- Potential security risks. Sharing sensitive data about your people and business requires high security standards and safety measures.
- Dependency on vendor. Be scrupulous and meticulous in choosing your IT partner, because you will have to entrust your development process partially into their hands.
- Management overhead. Communication and control over the remote employees requires extra efforts in management.
Conclusion
What is outstaffing? It is a powerful model of cooperation with external IT services providers to empower your domestic IT crew. It covers talent gaps and helps covering your business project needs in a flexible and cost-effective way. Understanding peculiarities, goals, benefits and downsides of this approach, you will utilize it it a most profitable for your business way. And a partnership with a trusted ally will determine the comfortable, secure and successfull software development.