The business model faced a massive revolution during its late 90’s with a new emerging trend of outsourcing. During this, the American tech companies started a new trend of business by approaching the third-party vendors. Since then, these types of partnerships got common in big and small IT corporations and especially startups. The main reason to do so was cost efficiency, but with time, there were many flaws in it. The low-quality service and lack of understanding amongst the outsourced vendors arose problems of bloated budget, delayed deadlines, etc. This gave rise to the outstaffing model, which provided more control to the client over the product by directly managing the remote work. This has become a standard model amongst the tech industries like global corporations and middle-sized business.
Outstaffing relates to indirect employment, where the specialist is hired for a team with the help of an IT outstaffing company. They provide such specialists according to the requirement or detailed join description send by the company for the required position. The most fitted candidate is interviewed and approved by signing the contract and is hired for full time indirectly. This method is generally used when companies want to extend their team quickly in different countries by taking the help of outstaffing agency provider of that country. This way, the company can keep full control over their project and has full responsibility for the on-time deliveries of the project.
Core Outstaffing Benefits
In the outstaffing model, the client doesn’t need to search for remote tech specialists themselves and nor has to take care of the employee taxes or payroll. This also excludes the overhead risk of cost management by lowering the rates. The client need not cover the recruitment process and can focus on his team. The outstaffing vendor includes all such administrative processes of recruitment and payroll.
With the help of this model, you don’t need to open a new company or branch for the development office in any other country. You don’t even need to hire lawyers, accountants, or managers as they already remain a part of outstaffing vendor and takes care of the work while incorporating your company’s internal policies. The outstaffing vendor provides the infrastructure and expertise. The outstaffing cost consists of vendor fees and developer net salary, which is rendered after the delivery of the end product. This also includes the additional cost of managing risk.
Process of Cooperation with an Outstaffing Company
The method of outstaffing starts with a detailed discussion to acquire the needs of the client. During this collaboration, the vendor is told about the needs of the company. The vendor prepares the team accordingly, followed by the workshop process, where the team is elaborated about the corporate culture and business process of the company. Once the team understands about expected result and fulfillment of the goal, the members are selected from it. The members are chosen by recruitment, prescreening, and going through their CV, which is done by an outstaffing company. The CV of the finalized candidate is sent to the client, and they give the feedback accordingly. Further, a call is scheduled between the client and recruited team members, which proceeds with an interview round to see the cultural fit of the candidate. The last step is done by having a technical interview of the candidates by ensuring their suitability.
Once the team members are hired, they are given access and the workplace. The hardware and software are being prepared by the outstaffing company. The team members are now introduced to each other, and the manager further leads everyone to explain their roles and duties. The client keeps sharing the feedback between time intervals with the outstaffing vendor. This model requires the participation of both parties to actively manage the team and provide them with a pleasant environment.
Remember to choose wisely your outstaffing agency while judging them based on the year of expertise and certificates & recognition. Tech talent remains the core element of the IT staffing model, and the vendors need to provide services relating to international standards. The vendors must respond to every query of the clients by paying particular attention to it. The certification also shows the growth of team members associated with this company.