Janet Cohen Consulting, LLC

Archive for September, 2023

It also takes into account all needs, pain points, and wishes of the potential candidates. However, taking care of people development, company’s extra perks, and policy changes is a client’s responsibility. That’s why we came up with a unique model for outstaffing called Yourshoring. The Yourshoring model allows you to hire an extended development team built entirely around your needs. In other words, we help you create a high performing remote development team that is entirely tailored to your product requirements and vision, not ours. The outsourcing approach lacks transparency because the client provides the outsourced service provider with their specifications and receives the results at the end of the task period.

In this way, clients don’t have to find and select the developer(s) for their company themselves. They select from already vetted professional developers available in outstaffing company’s talent pool. By partnering with such a company, your business gets a team or worker to perform a specific task/project. Now, when the difference between the two processes is more transparent, you might still hesitate whether to trust your talent management process to an outstaffing company.

Outstaffing Advantages and Disadvantages

All you have to cover is an agreed hourly rate, which mostly depends on the engineer’s experience and skills. In the software development area, this cooperation model has gained wide popularity. Our nearshore software development team onboard quickly to jump-start your tech projects. Therefore, the outstaffing company allows another company to use the services provided by part of its employees for a predetermined charge.

• Although an outstaffing IT model is comparable to outsourcing, engaging talent through outstaffing has different characteristics.
• Software outsourcing and outstaffing are sometimes used interchangeably.
• While outsourcing and outstaffing have a lot in common, these models are very different.
• By choosing each talent yourself, you refine your employee pool, which in time benefits your business.

Outstaffing is better for clients with significant, long-term needs that need day-to-day control of their vendor team. Outsourcing is better for clients with shorter-term needs that necessitate turnkey service from their vendors. Unlike outsourcing, outstaffing enables you to stay on top of each project and set the tempo for how things will go. In outsourcing, once you hand over the project, the hired service providers will dictate the terms at their convenience.

The Ultimate Guide to IT Outsourcing: Eastern Europe vs Asia

The client rarely has access to the development team itself and those people who complete all the work on the project usually work on several projects at a time. Moreover, because outsourcing is more short-term based than outstaffing, the vendor typically charges an extra premium. There are many options to consider in the outsourcing vs outstaffing debate.

The rates significantly depend on the developer’s experience, tech stack, and region. For example, according to Glassdoor, a Senior Software Engineer in the USA makes around $150,000 annually. In Armenia, it’s almost the same – around $70,000 per year, while in Moldova – approximately $50,000.

People Operations Vs. HR in Outstaffing Model

IT outsourcing can be complex, but it is also one of your company’s most important decisions. While you may know what you want to accomplish, deciding how to get it done is difficult. Flexibility, efficiency, and individual approach to each customer are the basic principles we are guided by in our work. When most of the items from the above list are true for your company, you can safely implement this model in your work.

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. Outstaffing provides businesses with an opportunity to look for fresh pools of talent located in other cities, countries and even continents.

Pros and Cons of Outstaffing

The CEO of NorthDevTech, a Netherlands-based tech company, decides to hire a team of specialists located in an Eastern European country. After researching online and talking to fellow business owners, they decide to partner with TalentPro, a company specializing in staffing clients’ teams with local specialists. NorthDev sends TalenStaffingtPro detailed job descriptions and requirements for their open positions. TalentStaffingPro proceeds to find fitting candidates, who NorthDevTech interviews and then approves the ones they like best.

The hiring process is faster as there are naturally more matching specialists to pick from if we are talking about the whole world, not some country or city. Members of international teams often possess diverse skill sets, areas of expertise, and industry knowledge. This diversity can stimulate a rich exchange of ideas, which fosters problem-solving and innovation. Moreover, it can aid in global business expansion by providing valuable insights into local markets, customer preferences, and cultural nuances.

What Are the Advantages and Disadvantages of the Outstaffing Model?

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. 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.

Full Scale provides all the experts, from software engineers to project managers and QA specialists. While outsourcing may be a more cost-effective option in the short term, it’s likely not going to last forever. As your business grows and more employees are added to your payroll, you will need to hire a full-time team. When it comes to outstaffing, clients manage their extended team themselves, as it is fully at their disposal. Your CTO, your product or project manager can be in charge of the development process – but whoever they are they come from your side. Also, the software development service provider is responsible for hiring, maintaining the team and, as mentioned, payroll.

#1. The client does not get bogged down in project management

So, outstaffing makes it effortless to scale up and down your workforce. 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.

Difference Between Outsourcing and Outstaffing

Get outsourcing rates in Eastern Europe, Asia, Latin America, Africa as well as tips on how to choose the country for offshore development. Get handpicked, hyper talented developers that are always a perfect fit. Does that sound like a lot to digest, custom ai solutions or need more help with potential outstaffing challenges? Check out our helpful guide on how to solve the 14 typical issues with offshoring. Outsourcing is the delegation of business tasks to third parties who are specialists in a particular field.

Core Outstaffing Benefits — What Companies Find It Most Useful?

Outsourcing is when you, as a service seeker, reach out to an independent outsourcing agency that provides you with experts to take care of whatever project you need help with. 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. Now that you’re equipped with knowledge of outsourcing and outstaffing models, you’re ready to choose one that suits your business goals. Remember the differences between the models, as well as their benefits and drawbacks. Outstaffing is similar to purchasing a strong football player for a season to enhance your overall team performance.