March 23, 2023

What is Outstaffing? – Here’s Everything You Need to Know

Outstaffing has become a popular term among businesses in recent years. While many companies today are opting for outstaffing, others want to know what it is all about.

Whether you are an entrepreneur willing to make your company more efficient or a project manager responsible for delivering projects quickly, outstaffing is a lucrative option.

Individuals who haven’t researched much about outstaffing may confuse it with outsourcing. However, the two are quite different from each other.

Here, we will discuss everything essential about outstaffing that you need to know. Also, you’ll get to know the main differences between outstaffing and outsourcing. So, let’s get started!

What Exactly is Outstaffing?

Outstaffing is one of the hiring models that are widely popular in the IT industry. It allows you to hire skilled developers who work alongside your in-house team to deliver projects on time. With outstaffing, it becomes possible to hire talent from different parts of the world and have the brightest minds working for you.

Additionally, outstaffing can save you a lot of time and money; you won’t have to spend excessively on the hiring process. All you need to do is share your requirements with an outstaffing service provider, and they will arrange the right talent for your needs. Moreover, you won’t need to worry about giving extra employee benefits and become familiar with the local employment rules.

With outstaffing, you can quickly hire qualified individuals for your company. At the same time, your operational costs go down as there’s no need to buy or rent hardware and office space.

The best thing about hiring IT professionals with outstaffing is that you can directly manage them and assign tasks as per your requirements. There is no involvement of project managers who are responsible for managing and assigning work.

Are There Any Differences Between Outstaffing and Outsourcing?

Yes! Outstaffing and outsourcing are two different hiring models. The ultimate aim of both arrangements is to provide an easy way for companies to hire resources to accomplish work. However, their ways are different along with the advantages that they offer. For instance, outsourcing lets you hire a team to get dedicated support for a project. On the other hand, outstaffing allows you to hire and manage professionals; you can make them work on different projects as your business needs.

Here are some more differences between the two that you must know.

  • In outsourcing, your engagement with remote employees is for a short duration or till the project gets completed. On the other hand, outstaffing allows long-term engagement since you can make remote employees work on different projects.
  • When you outsource a team of developers, you have little to no control over them directly. In general, you need to coordinate with the project manager to get the work done. With outstaffing, you work and manage developers directly, as there’s no involvement of project managers.
  • Outsourcing makes a good choice when you need help with a specific project. On the contrary, outstaffing becomes a viable option if want to expand your team and take on new as well as existing projects.

Most Prominent Benefits of Outstaffing

Let’s now discuss the benefits that you enjoy by hiring remote employees through outstaffing.

1. Hiring Skilled Developers Becomes Easy and Effective

As tech companies grow or expand their business, they hire developers with new skills. Also, as certain technologies become more popular than others, companies need to hire individuals with expertise in such technologies. They may need to open new positions from time to time. However, finding and hiring the right talent can be difficult due to certain reasons, such as the unavailability of experts in the local market, high hiring costs, and so on.

Outstaffing emerges as an easy and economical option to fill the talent gap. You get access to a pool of talented professionals who are a great fit for your requirements. Additionally, the professionals you hire through outstaffing have experience working in a remote setting. They can easily get accustomed to your business’s culture and become an integral part of your existing team.

2. Reduced Operational Costs

With outstaffing, you not only cut down the hiring costs but operational costs as well. Your business can save anywhere between 20-40% on operational costs with outstaffing. The reason for the reduced operational costs is that you do not have to pay expenses related to office space, equipment, coffee, internet, electricity, etc.

Your business will be able to save a significant amount and use it to fuel further growth. Moreover, you get to work with talented people who can boost the quality of your deliverables. In other words, you will be hiring the best employees while spending less than what you have to pay for in-house employees.

3. No Need to Worry About Local Employment Laws and Regulations

When you hire in-house employees within your country or some other country, you need to take care of the local employment rules. It’s essential for you to abide by employment laws and regulations to ensure you stay away from any legal trouble. For instance, you need to provide a certain number of paid leaves, overtime compensation, and retirement benefits to your in-house employees.

There’s no need to bother about the employment rules as the outstaffing company will take care of all that on your behalf. Moreover, the relaxed dismissal conditions set by most outstaffing agencies are flexible.

4. Total Control Over Hired Resouces

Unlike outsourcing, outstaffing gives you full control over the remote staff. You are the one managing their workloads and assigning them tasks. You don’t have to rely on a project manager or coordinator to get the work done. Moreover, you will have direct command of the development process.

In all, outstaffing gives you complete ownership of the projects handled by the remote staff. The availability of tools for project management, time management, time tracking, etc. makes it possible to improve and monitor the productivity of the employees working remotely.

5. Faster Project Execution

Outstaffing becomes a viable option if your in-house team is unable to meet the deadlines due to some reason or you want to speed up the development process. You can easily find and hire professionals having the technical expertise to complete your ongoing projects.

As a company looking to complete and deliver projects quickly, you should consider hiring talent through outstaffing. Also, you can assign mundane tasks to remote employees and provide in-house team members with extra time to focus on the core processes of your business.

6. Flexibility to Scale Up or Down Your Workforce

As your business grows, you need to expand your team. However, expansion becomes costly and time-intensive when hiring in-house employees. Moreover, sometimes you only want to expand your team temporarily, and laying off employees is likely going to damage your business’s reputation in the market.

With outstaffing, you can hire skilled workers whenever you need. Also, you can specify the time for which you need them. At the end of the contract duration, you can even rehire the workers depending on your requirements. So, outstaffing makes it effortless to scale up and down your workforce. Moreover, you can save significantly by eliminating idle resources.

Key Challenges Associated with Outstaffing

Like any other hiring model, outstaffing comes with certain shortcomings that you need to know.

1. Communication and Cultural Differences

When hiring employees from outside the geographical location of your business, cultural and communication differences usually exist. It is difficult to communicate if there’s a language barrier.

How to Overcome?

You should interview each employee to determine their communication skills and the channels that you would use to communicate. Also, make some arrangements so that your in-house team and external employees learn about each other’s cultural values.

2. Time Zone Differences

The time zone difference can affect the effectiveness of collaboration with external employees. It becomes difficult to have a meeting at a random time. 

How to Overcome?

Before working with remote employees, you need to establish some communication rules along with a particular time of the day when you can communicate with them in real-time.

3. Finding a Reliable Outstaffing Company

If you explore the market, you will come across many companies that provide outstaffing services. However, you will find it difficult to choose one that best suits your interests. You have to do extensive research to shortlist the most suitable outstaffing companies and discuss your requirements with them to choose the best one. 

How to Overcome?

Check if an outstaffing company provides experts with the skills that you need. This will help you narrow down your choices quickly. Moreover, check the client feedback to get a better idea of the quality of outstaffing solutions offered by a company.

Do You Need to Consider Outstaffing for Your Business?

Outstaffing is a highly successful hiring model that your business can leverage to achieve new heights of success. Especially, if you want to hire remote employees or a team of developers, outstaffing makes the best option. It is even more economical and better than outsourcing.

With outstaffing, you hire experts who will be working remotely for your company. They work dedicatedly for your business just like any other member of your in-house team. You can directly communicate with the outstaffed employees and assign tasks according to your requirements. Plus, you won’t have to worry about giving them additional perks, like insurance coverage, retirement benefits, etc.

If you want to know how your business can harness the benefits of outstaffing, you can connect with one of our consultants right away!

Summing it All Up

Finding talented developers and hiring them is not an easy task. Especially, if you are on a budget, it becomes extremely challenging to find the right individual who will add value to your team. Moreover, if you need expert developers on a contractual basis, hiring becomes even more difficult.

Outstaffing makes a great option for any business looking to employ developers with expertise in various popular technologies. Whether you want to hire developers to speed up the development of a project or expand your team, outstaffing emerges as a cost-effective solution.

Teqnovos offers world-class outstaffing solutions to businesses of all sizes. Also, you can hire developers with experience in certain industries to ensure the success of your projects. Get a free consultation from our experts to identify the best human resources for your needs.

Let’s take your business to the next level with our development masterminds.