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A Short Guide To Outstaffing in the IT Industry

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A Short Guide To Outstaffing in the IT Industry

The market is going crazy: companies compete, and developers want high salaries, remote work, and stability. As a result, the popularity of outstaffing – “renting” a specialist by a company – is growing.

What Is Outstaffing and How Body Leasing Helps

The company’s personnel shortage is growing. Searching for specialists takes a long time: two months to close a vacancy is a good result. Both parties want the same thing: to fight less with HR processes and finally start doing work. At SECL Group, we are always ready to help with Body Leasing and help companies select the best IT developers. And that’s where outstaffing comes in.

What Is Outstaffing?

In essence, this is the “rent” of a specialist: the company connects a person to work on a project without including the staff. At the same time, the specialist formally remains in the team of the other company.

The topic of outstaffing is rather popular nowadays. This model was invented in the 1970s. While remaining in the staff of one company, the specialist de facto works in another. The attitude to outstaffing has changed like a spiral: admire the new work scheme and completely prohibit it. In the post-pandemic 2020s, it turned out that this model is needed for the IT market.

Working as an outsourcer, the IT specialist receives:

  • Work on his conditions in a large corporation;
  • Payment for the arrangement of the workplace at home;
  • Only the significant corporate benefits: for example, insurance;
  • Long-term contracts for a year;
  • No negotiations with HRs, dozens of interviews, documents, and other annoying things.

The idea of outstaffing has also infected many large companies. The pandemic blurred the borders, and the teams became multinational.

How Outstaffing Works:

  1. The remote hiring platform concludes contracts with IT companies and individual developers who feel uncomfortable in the existing market.
  2. Finds the most suitable projects for them from corporate clients.
  3. Takes charge of negotiations, legal registration, and all HR processes.
  4. As a result, the developer may not freelance but work for severe employers – large banks and corporations. All this while sitting at home, on long-term projects, receiving a good salary, but not delving into obsessive corporate features.

Who Needs Body Leasing and Why?

Why rent specialists when you can hire them? Yes, a full-time specialist is sometimes better than a remote one, but this is only sometimes the case. What if you need to launch a startup? The development can take only 3-6 months. Otherwise, you will only hire people if the startup works. Also, many large companies cannot quickly increase the staffing load for an unplanned project because the project has grown and requires new specialists.

Some clients choose between full-time specialists and contractors but choose the middle in the form of hired specialists who work like full-time specialists but have many advantages.

Why Is Outstaffing Profitable?

IT outstaffing may turn out to be more profitable and convenient than hiring a staff of IT specialists and purchasing technical equipment at once for many reasons:

Quality and Speed

Your equipment will be serviced by a team of high-level specialists who constantly improve their qualifications. Working with hundreds of pieces of equipment daily, competent specialists have developed many practical solutions for typical tasks. Thanks to this, the time to eliminate malfunctions is reduced to a minimum.

Reliability

An internal employee of the company may get sick, go on vacation, not be able to cope with the volume of work, etc. Hired specialists are always in touch and ready to help as soon as possible.

Material and Technical Base

The software, tools, and devices necessary for the fastest possible diagnosis and elimination of malfunctions are always with a hired IT developer.

Cost Reduction

Computer maintenance by hired specialists costs less because you do not need to maintain additional jobs, pay salaries, monitor the quality of work, and how efficiently time is used.

Quality Guarantees

The agreement regulates the interaction process between your company and a specialist. Any deviations from it lead to monetary fines for the performer. That is why hired people do their work with the highest possible quality.

Many Tasks – One Contractor

One contract. One responsible agent. More order in documents, fewer papers, less gloom with the search for spare parts and consumables, more transparent control, and easier accounting life.

Who Rents IT Specialists

1. Outsourcing companies

These are companies that specialize in growing and leasing specialists. Usually, all processes for hiring specialists are verified and refined, specialists’ expertise and their level are confirmed, and there is a description of the grades. For example, more than 70% of our specialists are leased.

2. Agencies, studios, etc.

Companies whose central direction is web development, website promotion, or advertising, but at the moment, they have a specialist they can rent out. The cost of such companies is slightly lower than that of outsourcing companies because the business processes of hiring specialists work less efficiently.

Why Are The Companies Afraid of Hired Staff?

1. The specialist will get access to confidential information

Such risks are more applicable to full-time employees since it is challenging to protect against data leakage, and if it happens, the employee is unlikely to be punished. If confidential information leaks due to the partner’s fault, it is fraught with a hefty fine, which is very easy to obtain from a legal entity.

2. The company will not be able to control the specialist as a full-time employee

It all depends not on the type of specialist but on how qualified the manager conducts the project and the specialist. In most cases, the specialist has a list of tasks, for example, for 1 or 2 weeks. Your manager, together with the specialist, determines the deadlines and fixes them in a sprint, so it is fine when the specialist performs the assigned tasks.

The main thing is that he does them in the allotted time. In the case of operational (hot) technical support, his work schedule is negotiated with the specialist so that he is always in touch.

3. Non-compliance of the specialist with the declared level

For the specialist to best meet your requirements, we recommend interviewing or getting to know the specialist before hiring him. During the meeting, you can tell the specialist about the project, and the specialist will share his knowledge.

The market is saturated and diverse. Different people are good IT specialists or want to rent or hire them to fulfill one task. Outstaffing is becoming a trend, and this process cannot be stopped.

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