Table of contents:
- What is Outstaffing Model, and Why is it Beneficial for Business?
- How Can Outstaffing Help Me Reduce Overall IT Costs?
- Preparing Developers to Work with an IT Outstaffing Model Team
- Communication Tools and Strategies
- Choosing an Outstaffing Company: Unbench Guide
- Conclusion
- FAQs
In 2024, outstaffing became the most popular model worldwide. Digital companies unlock the best strategies to find and hire matching projects and top-tier developers with various technology stacks.
According to Grand View Research, global expenditures for outsourcing and outstaffing will reach $936.6 billion by 2027. This means that the demand for skilled IT professionals is higher than ever.
So, in this article, we discover the most popular questions about IT outstaffing:
- What is outstaffing model?
- What are the main pros and cons of the IT outstaffing model?
- How is outstaffing reducing costs?
Let's start reading!
What is Outstaffing Model, and Why is It Beneficial for Business?
Outstaffing is a business model in which different companies can find and hire specialists from providers (platforms, companies, or agencies). Traditional outsourcing involves transferring an entire project to a contractor, while outstaffing is the ideal solution for transferring developers to another project.
Moreover, you can learn more about the main differences between outstaffing and outsourcing. This will help you clarify your business needs and choose the best solution.
The significant number of layoffs was partly because in-house developers could not find a project and were sitting on the bench for a long time. That's why outstaff is the essential solution in this period of the IT crisis.
Pros and Cons of the Outstaffing Model
Outstaffing is a popular solution among IT companies planning to expand their business needs. However, in such a case, we should consider the possible pros and cons of the IT outstaffing model. You can familiarize yourself with them below:
Pros:
- Access to a Global Talent Pool. The most significant advantage of working with an outstaffing vendor is the access it provides to a global talent pool;
- Focus on Core Business Functions. By outsourcing specific tasks, companies can focus on their core business functions;
- Fast Hiring. Recruiting software engineers through an outstaffing model can be significantly quicker than the traditional hiring process;
Cons:
- Security Risks. Sharing sensitive information with an outstaffed team can introduce security risks;
- Lack of Company Culture Integration. Software outstaffing model might not integrate fully into the company culture, which can impact teamwork and creativity.
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How Can Outstaffing Help Me Reduce Overall IT Costs?
Alona Honcharenko, Unbench Expert:
Economic shifts in the IT market have made outstaffing an even more cost-effective solution for businesses. According to McKinsey, 76% of infrastructure and operations leaders reported experiencing at least one major incident requiring disaster recovery in the past two years, with 50% encountering two or more significant incidents.
From this, it's clear that considering outstaffing as a temporary or seasonal solution can be an effective strategy for minimizing the risks associated with traditional business staffing approaches. So, I recommend you familiarize yourself with best practices in outstaffing to minimize risks and optimize resource allocation.
a) Solution for Developers on Bench. Prolonged periods of inactivity can negatively impact employee morale and motivation. By leveraging the Unbench platform, you can quickly assemble skilled teams to address your specific IT needs and find a request for your bench developers;
b) Minimized Recruitment Costs. Outstaffing providers have established networks of skilled IT professionals. This eliminates the need for extensive recruitment processes, saving time and money on hiring and onboarding;
c) Focus on Business Activities. Delegating functions to an outstaffing team allows you to free up internal resources to focus on your core business activities. This allows you to allocate your time and budget more efficiently;
So, considering outstaffing as part of your business strategy can significantly save overall IT costs. Hope this information was helpful for you!
Preparing Developers to Work with an IT Outstaffing Model Team
When transitioning to an IT outstaffing model, it's crucial to adequately prepare your in-house developers for seamless collaboration with the external team. Here are some key strategies:
- Clear Communication and Expectations. Open communication builds trust between you and the developer. Don't exaggerate or say things that are not true;
- Cultural and Time Zone Considerations. When a team can work from different parts of the world, cultures, and regions, you should ethically treat all professionals and offer convenient working hours;
- Technical Onboarding. The best interviewing and onboarding periods take place when a direct technical expert is available to help and advise at any time;
- Team Building and Collaboration. To make the workers feel part of the team and involved in the work processes, it is necessary to organize team building at least once a month and familiarize the team with each other;
- Continuous Learning and Development. Offering learning opportunities allows everyone to learn new things and improve their skills.
By implementing these strategies, you can effectively prepare your developers to work and unlock only the advantages of the IT outstaffing model, ensuring a smooth transition and successful collaboration.
Communication Tools and Strategies
Preparing your team for seamless collaboration is crucial when venturing into the outstaffing model for your company's project needs. An excellent way to begin is by defining the communication toolkit and crafting strategic approaches to work harmoniously with your outstaffing partner.
Key Strategies Overview:
Clear Communication Guidelines. Establish guidelines on how and when to use each tool to ensure efficient communication;
Consistency in Use. Regular and consistent use of these tools can help build a routine, making the outstaffing team feel more integrated into your company's workflow;
Security and Access Management. Implement security protocols for sensitive data and ensure proper access rights are in place for all team members;
Cultural Sensitivity. Consider cultural and timezone differences when scheduling meetings and setting deadlines to ensure inclusivity and respect for all team members.
By leveraging these communication tools and strategies, companies can effectively prepare for working with an outstaffing model, ensuring streamlined, productive collaboration.
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Choosing an Outstaffing Company: Unbench Guide
Unbench is a popular platform for finding and hiring developers. You can place a request by yourself, negotiate there, and choose the format you like. You can also contact the manager; we will help resolve this issue. Here's a guide to help you choose the right one:
1. Define Your Needs:
- Skillset. What specific skills and experience do you require from your outstaffing team?
- Project Scope. How large and complex is your project?
- Team Size. Do you need a small or large team of developers?
- Budget. What is your budget for the outstaffing project?
2. Search through the Unbench platform:
- Filter results. Use Unbench's filters to narrow your search based on location, pricing, and other criteria.
- Review developers. Look at the individual developers and companies to assess their qualifications and experience.
3. Evaluate Companies:
- Company Size. Consider whether you prefer a larger or smaller outstaffing company.
- Experience. Look for companies with experience in your industry or with similar projects.
- Client Reviews. Check reviews from previous clients to get an idea of the company's reputation.
- Communication. Assess how well the company communicates and responds to your inquiries.
- Engagement Models. Understand the different engagement models offered by the company, such as hourly, fixed-price, or dedicated team.
4. Interview and Negotiate: Talk to representatives from the outstaffing companies you're interested in.
5. Check References: Request a list of previous clients you can contact for feedback.
If you are unsure about choosing between a team or an individual specialist, Unbench offers an option to assist you with the selection process. We can help you determine exactly what you need. Let Unbench take the guesswork out of your selection process, so you can focus on achieving your project goals.
Conclusion
In addition, preparing the company for remote work provides many benefits of the IT outstaffing model. By providing access to a global talent pool, enabling companies to focus on core functions, and facilitating fast hiring processes, outstaffing emerges as a strategic choice for optimizing IT expenditures without compromising on quality and competitiveness.
Unbench is a B2B platform that connects IT companies into a community capable of mitigating risks and managing market shifts by exchanging human resources, expertise, and project opportunities. Try on our platform to find IT developers or outsourced projects for all your needs!