Every company requires a lot of specialists, but the issue is not all companies have the same amount of financial resources to recruit and maintain a large team. This is the reason companies use outstaffing, and the potential of it was displayed during last year’s COVID-19 pandemic-induced lockdown.
The choice of using such a hiring approach often depends on the initial needs and objectives of a business. This post will exhibit the main reasons why outstaffing staff for developing apps or software (or both) is better than hiring an in-house team directly.
Moreover, ways to find an outstaffing company will also be explored to help organizations find the needed outstaffing firm with a dedicated team best suited to their needs.
Outstaffing – what is it?
Outstaffing basically means a kind of remote employment arrangement when a company makes a contract with a third-party team or an individual employee; to carry out work or a specific number of organizational functions.
It is basically an approach when the organization acts as an employer. This indicates that it is responsible for the wages, bonuses, and equipment provided to the outstaffed employee, whereas the client company provides tasks and assignments to the outstaffed employee.
Which model of outstaffing is commonly used?
The most commonly used model in outstaffing is the Extended Team Model = ETM. This fits both short-term and long-term projects, as explained by project managers and human resource specialists from a well-known firm of app development Toronto.
They further explain that the client firm might have its core team of development engineers who must receive reinforcement from new members of the remote team. In this model, the client often controls and regulates the whole scope of the work, and also has direct access to the extended development team.
Are outstaffed employees freelancers?
Outstafferd employees are not freelancers. They are rather specialists working for contractors. Thus, hiring outstaffed employees is hence hiring them from an outstaffing company to carry out work on a specific project. The specialists will be a part of the client’s team until the project’s end.
This method is quite popular for most small and medium-sized business entities, where the number of employees does not exceed 100.
In such an instance, the extended team of developers, or engineers, or other professions, may come to assist with the app/software development processes, bringing in certain domain expertise, covering gaps in skills, supporting quality assurance, and the like (make money online).
The top benefits of outstaffing
The benefits of outstaffing are probably the reasons why it has become popular. Here are some reasons why outstaffing is quite popular:
- A swift response to their business needs and less time to hire.
- Companies can find talent from all across the globe.
- No company needs to worry about local taxes.
- No company needs to worry about retaining personnel.
- Fewer efforts are needed from the human resources division.
- Flexibility for staffing.
- There is no need to spend resources and additional time on educating employees.
- Less commitment is required.
- No need to maintain an in-house department.
In what ways can companies find an outstaffing firm?
A lot of companies once conducted outstaffing and were able to get what they needed. Here are some ways for them to find an outstaffing firm.
- Information collection.
- Communication and conveying clear work details.
The downside of outstaffing
It is true that everything in the world has its drawbacks. The main reasons why most organizations do not often rely on outstaffing services are as under:
- Possible issues in communication between the firm and the employees: If God forbid, all contact and communication with employees go through the outstaffing company, it can slow down the speed of tasks being done by a large margin.
- Outstaffers can have a lack of motivation: An outstaffed employee often receives only a fixed payment. They are not involved in the company’s branding or marketing activities, nor concerned about its public image.
- The prospect of averting greater responsibility: Those who choose an outstaffing model should be ready to take on more responsibilities. This is why experts recommend having technically savvy experts on board for more effective management of teams and tasks.
It is indeed alluring but also at the same time, it demands a lot of responsibility. Outstaffing is no longer child’s play, and the need for technically savvy professionals with experience onboard is the key to having it done right.
Moreover, it should also be understood that no one can implement a model, sit back and relax. Each thing requires a lot of work, and the only stage of relaxing is when it is time to relax. When it is time to work, it is time to work.