What Is Outstaffing & How to Benefit from It?
Nov 22, 2023
In order to deliver a successful project, SMEs, startups, and enterprises generally hire an experienced team. However, they may face a significant problem as a result of the lack of tech talent. According to a new Korn Ferry report, more than 85 million jobs could go unfilled by 2030 due to a shortage of skilled workers.
In this regard, IT outstaffing services can offer organizations a cost-effective way to supplement their existing team of experts. In this article, we will examine the basics of smart outstaffing, as well as its most critical benefits and how to choose the right outstaffing partner.
Smart outstaffing is a relatively new approach to outstaffing that differs from conventional outstaffing in a few key ways. It involves working with an outstaffing provider to build a remote team whose goals and objectives are in line with the company's. This approach includes identifying business needs, continuous improvement, and a strategic and proactive approach to team augmentation. Organizations that use smart outstaffing minimize the risk of mistakes thanks to a high level of staff expertise.
What is outstaffing?
IT outstaffing services involve a remote hiring model where a dedicated team or individuals are provided by an outstaffing company to the customer for their software development project. These specialists exclusively focus on the client's project for the duration specified in the contract. While the customer retains full control over the outstaff team, they are relieved of any operational concerns.
Inherent Challenges of In-House Teams
While having an in-house team provides a sense of control and proximity, it's not without its set of challenges. Companies, even with well-established internal teams, often grapple with the following issues:
1. Talent Gaps:
Maintaining a comprehensive skill set within an in-house team can be challenging. As technology evolves, new skills become imperative, and bridging these gaps swiftly to keep pace with industry advancements can strain existing resources.
2. Resource Limitations:
In-house teams operate within predefined budgets and staff capacities. When faced with sudden spikes in workload or the need for specialized expertise, companies can find themselves grappling with resource constraints that impact project timelines and quality.
3. Scalability Challenges:
Scaling operations swiftly to meet project demands is a common hurdle for companies relying solely on in-house teams. Accommodating growth often requires extensive hiring processes, time-intensive training, and significant financial investment.
4. Diverse Skill Requirements:
Projects today often demand a diverse set of skills spanning multiple domains. Maintaining an in-house team with expertise in every niche area can be economically unfeasible and operationally challenging, leading to compromises in project execution.
5. Innovation Bottlenecks:
In-house teams, while deeply knowledgeable about the company's processes, products, and culture, may sometimes encounter innovation bottlenecks. Fresh perspectives and external insights are essential for fostering creativity and overcoming challenges.
6. Geographical Constraints:
In a globalized world, companies may find themselves limited by geographical constraints when searching for specific talents. Overcoming this limitation is crucial for accessing a broader talent pool.
These challenges can impede a company's ability to adapt swiftly to market changes, undertake new projects efficiently, and maintain a competitive edge. It's in addressing these issues that the strategic inclusion of outstaffing solutions becomes not just advantageous but often essential for sustained growth and success.
Outstaffing is a fitting choice when...
1. Limited In-House Resources:
Outstaffing is particularly beneficial for businesses, especially small and medium-sized enterprises, with limited in-house resources. By outsourcing development or design tasks to external professionals, these companies can access the expertise needed without the overhead costs of expanding their internal team.
2. Specific Expertise Requirements:
When businesses require specialized expertise in emerging technologies like Artificial Intelligence, Blockchain, or ERP/CRM development, outstaffing to professionals with the required skills becomes a strategic choice. It allows companies to tap into a pool of specialized talent without the need for extensive recruitment efforts.
3. Budget Constraints:
Budget constraints often hinder the hiring of a full-time, in-house team. Outstaffing provides an economical solution, enabling businesses to access top-tier talent without the additional costs associated with recruitment, training, and maintaining a large workforce.
4. Seasonal or Project-Based Demands:
For businesses facing seasonal fluctuations or engaged in project-based work, outstaffing offers the flexibility to scale the team according to demand. This adaptability allows companies to efficiently manage varying workloads without the financial commitment of maintaining a consistent, full-time staff.
5. Quick Time-to-Market Requirements:
In industries where rapid time-to-market is paramount, outstaffing accelerates the hiring process. By leveraging a readily available pool of skilled professionals, businesses can swiftly assemble teams and initiate projects, avoiding the delays typically associated with traditional recruitment cycles.
IT Outstaffing Advantages
IT outstaffing services provide businesses with many benefits, including competitiveness, efficiencies, and revenue growth. You can see at least five key benefits that make it a perfect choice. We'll explore them here.
Access to expert IT talent
Is crucial for organizations across various industries facing challenges such as fraud prevention, secure management of patient data, or the development of predictive analysis apps. However, hiring these specialists in-house can be challenging. IT outstaffing services offer a practical solution, providing access to professionals with extensive experience in addressing industry-specific challenges.
Remote staffing agencies understand the intricacies of businesses in EdTech, Healthcare, eCommerce, and more, ensuring the delivery of top-notch services aligned with industry best practices. These specialists not only bring expertise but also continually update their skills to stay current with industry trends and innovations. This enables them to assist clients' in-house teams in selecting efficient tech stacks for the development of digital products.
Opting for IT outstaffing services grants businesses full control over hired specialists, the development process, and its outcomes. This direct management is facilitated by a variety of collaboration tools, ensuring efficient project oversight. The outstaffing model also enables tracking of work quality, allowing for flexible team scaling, and enhancing talent management policies within the company. Integrating in-house teams with staff augmentation services not only addresses gaps in IT expertise but also elevates the skills of the internal team through strong cooperation with remote staffing talent.
Faster Time to Market
Accelerating hiring processes ranks high among the recruitment priorities for many companies seeking to expedite their solutions' time to market. Collaborating with an IT outstaffing company becomes especially advantageous when in-house teams face challenges in meeting project deadlines or when businesses need to handle multiple critical IT tasks simultaneously.
IT outstaffing services streamline the process, allowing organizations to achieve faster time-to-market for their products without the need to search for experienced tech specialists. The responsibility of providing top developers tailored to specific project requirements rests with the outstaffing agency, freeing clients to focus on their core operations.
No Need to Follow Local Employment Legislation
Opting for an in-house IT team involves navigating complex and often stringent employment regulations, which can be time-consuming and costly due to additional expenses such as paid leaves, retirement benefits, and dismissal rules.
On the contrary, partnering with a remote staffing agency streamlines the hiring process, providing simplicity and appropriate dismissal conditions. IT staffing agencies handle all necessary employment requirements in their respective countries, relieving businesses of the intricacies associated with in-house team management.
Numerous companies undoubtedly opt for IT outstaffing services because of the chance to reduce their resourcing and project costs. This is facilitated by:
Elimination of On-Premises Expenses:
Remote staffing eliminates the need for investments in expensive on-premises IT infrastructure, office facilities, administration, and HR.
Lower Labor Costs in Strategic Regions:
Lower labor costs in regions like Latin America, CIS, the Philippines, and Vietnam make it feasible for business owners and startups to hire skilled and reliable tech specialists. For example, Kazakhstan has one of the best outsourcing and outstaffing locations.
Coverage of Additional Expenses:
Clients can forget about paying extra expenses, including taxes, medical insurance, and pre-payments, as these costs are covered by the IT staffing vendor.
Outsourcing Vs. Outstaffing: What Is the Difference?
When contrasting outsourcing with outstaffing, the primary distinction lies in the authority granted to the vendor. In outsourcing, the vendor undertakes specific tasks or business processes as defined by the contract. Conversely, in outstaffing, the client hires talent from an IT outstaffing company, delegates tasks, and oversees implementation, though the talent is officially registered as employees of the outstaffing vendor.
Further differentiators are briefly outlined below.
The Key Steps of the IT Outstaffing Process
If you prefer outstaffing in Kazakhstan and partnering with Nyoka, the process will include the following stages:
Just contact us throw email@example.com and describe your request.
Where to Find an IT Outstaffing Partner?
You've chosen the path of IT outstaffing services. Now, the question is: where do you uncover a dependable, seasoned partner to fulfill your project requirements? Explore these valuable resources to guide you in the right direction:
Explore review platforms specific to IT services and outstaffing. Websites like Clutch, ITFirms, Trustpilot, GoodFirms, provide client reviews and ratings for various service providers, helping you make informed decisions based on the experiences of others.
Social Media Platforms:
Leverage social media platforms, especially LinkedIn, to connect with professionals in the IT and outstaffing industry. Join relevant groups and engage in discussions to identify potential partners and gain insights into their expertise.
Utilize online platforms and marketplaces dedicated to IT services and freelancing. Websites like Upwork, Toptal, and Freelancer allow you to explore profiles, reviews, and ratings of potential outstaffing partners. These platforms provide a transparent view of a partner's capabilities and client feedback.
Connect with industry-specific networks, forums, and events. Attend conferences, webinars, and meetups where professionals in your field gather. These platforms often serve as excellent opportunities to identify reputable IT outstaffing partners and learn from others' experiences.
In the end, discovering a suitable IT outstaffing company often comes down to recommendations from your business partners or customers.
When it comes to IT outstaffing, CIS based providers is among the most popular destinations. Book a call with Nyoka and hire high-quality tech specialists for your project.
Tips and Tricks
Here are some tips and tricks for companies working with remote developers and dedicated teams:
Clear Communication Channels:
- Establish clear and reliable communication channels, such as Slack, Microsoft Teams, Google Chat, or any other messaging platform. Use video calls at Zoom, Google Meets, MS Teams for important discussions to enhance engagement and understanding.
- Clearly communicate expectations regarding work hours, availability, and project deadlines. Establish a transparent workflow to ensure everyone understands their roles and responsibilities.
- Schedule regular check-ins, both one-on-one and team meetings, to discuss progress, address concerns, and foster team collaboration. This helps in building a sense of community and accountability.
Provide Detailed Documentation:
- Document project details, coding standards, and processes. This ensures that remote developers have easy access to necessary information and helps maintain consistency across the development team.
Use Collaboration Tools:
- Leverage collaboration tools like Jira, Trello, or Asana for project management. These tools can help track progress, manage tasks, and provide a centralized location for project-related information.
When choosing between outsourcing and outstaffing, many companies are now picking outstaffing. Why? Because IT outstaffing services give great results. The whole team is fully dedicated to your projects. More and more businesses are hiring remote teams for their work. So, if you don't want to worry about finding good developers and dealing with taxes, go for IT outstaffing services.
Contact Nyoka to add extra expertise to your team. Nyoka's staff augmentation service brings you big benefits:
With a 90% probation success rate and over 70% of our staff contributing to customer projects for more than 12 months.
Within 2-4 weeks, we identify and onboard the best specialists for your project.
Your organization incurs no recruitment expenses; you pay only the hourly/monthly rate for our top talents.
We offer free replacement of hired developers when necessary, ensuring seamless knowledge transfer.