IT outstaffing is a remote hiring model where the client does not handle the direct employment of an employee on staff, but turns to a specialized company that provides a person to solve tasks within a single project.
The client is completely freed from the search for employees, does not deal with legal guarantees: employment contract, vacation, health insurance. And all financial investments — taxes, office rent, equipment — fall on the shoulders of the outstaffing company.
Outstaffing VS Outsourcing: What’s The Difference
Let’s finally understand the difference between the two models. Imagine yourself as a client who needs to create a mobile application.
Outsourcing: You don’t have an IT team, and you’re not savvy in development. However, you are good at counting money and clearly envision the end result. Then you turn to a company for outsourcing services. You explain that you need an iOS application, agree on deadlines and price.
As a result, you get a ready project (application) that was worked on by a whole IT team. In this case, the responsibility for quality lies with the executor.
Outstaffing: You are still the client. You have an IT team, but you lack “hands.” Therefore, you turn to an outstaffing company, where you explain the development requirements. You are offered a person who will temporarily join the team and solve the necessary tasks. You add the employee to the necessary chats, monitor sprint completion, and control the work.
In this case, it is you — the client, who is responsible for the end result.
At KOTELOV, we value positive client feedback and quality case studies. Therefore, developer oversight occurs from both sides. Managers regularly call the specialist and collect feedback on the team’s dynamics to ensure that the “client-developer” relationship remains productive.
Outstaffing Developers: Advantages
- No task, no employee. You hire developers for a project and end the collaboration when they are no longer needed.
- Top-notch specialists without searching. Outstaffed developers have extensive experience and a broad professional outlook. Unlike in-house colleagues, they participate in various projects based on skills and interests.Moreover, they have a high level of motivation, as each project is time-limited and the process is dynamic. Specialists do not deal with routine and boring tasks.The key to any good outstaffing company is a strong HR brand and processes.
At KOTELOV, we conduct pre-screening, technical, and other interviews for better collaboration from both sides.
- Quick onboarding of outstaffed developers. Good outstaffing companies promptly find the right developer and sign a contract. The client does not handle onboarding but immediately provides work instructions.No one wants to conduct ten interviews, and even Google hires after the first one. Companies do not have months to onboard a programmer, and they themselves will not agree to a long immersion,” noted a representative of S7 Airlines.At KOTELOV, we offer candidates within the first few hours after receiving the request. And if you cannot determine the developer’s stack, we will have a call and together describe the necessary requirements. We will also offer proven solutions to speed up work.Check out the prices for IT outstaffing at KOTELOV here.
- Safety net for force majeure events. Anything can happen. The client has long signed a contract with an outstaffing company, but something unexpected occurs: the developer cannot continue the project.In this case, the contractor quickly and smoothly (for the client) finds a replacement. At KOTELOV, we onboard a specialist within five business days.
Outstaffing Developers: Disadvantages
But outstaffing has its drawbacks, and the path there is definitely not for everyone. I don’t recommend using it if:
- there are no experienced team leads or project managers in the team;
- poorly established development processes;
- you have not formulated the project goal.
In the latter case, no matter what they do for you, it will all go unnoticed, and you won’t like it. In other cases, it’s better to opt for outsourcing. Then you simply state the project requirements and pay for development from scratch.
If you are still considering outstaffing, the next section is for you.
Red Flags of Outstaffing Companies
KOTELOV conducted its own research on what to look for when choosing reputable outstaffing companies. Here are the main red flags according to clients — Kommersant, Wecheck, 3logic, S7 Airlines, “KAS-OPT”.
No response
Good outstaffing companies have strong account managers who keep their finger on the pulse around the clock.
«If you don’t get a response within the next day, the company is clearly not interested in cooperation. Or your request is not up to their level», — a representative of 3logic.
They respond, but stick to the brief
If you have clearly formulated your request and sent it to outstaffing companies, pay attention to the follow-up questions. If the manager communicates with you based on a standard brief — they are not grasping the essence of your inquiry. Don’t waste your time.
Price only on request
There is always a chance of price inflation if it is not openly available. “The internal” price is one, but if you are a representative of a large company, it can multiply.
«Most likely, you will simply forget to ask about the prices. That’s why you always work with companies that are not shy to publicly disclose their prices», — a representative of 3logic.
Company stack is unclear When the specialization of an outstaffing company is unclear. There is a risk of wasting time trying to figure it out.
«It’s frustrating when the company’s stack is not clear. We don’t just need developers. So why waste a bunch of time figuring out the company’s stack, only to find out it’s not suitable!» — a representative of Wecheck.
If you are looking for developers on outstaffing, contact us: Email: sales@kotelov.com And you can learn about our corporate culture in the Telegram channel.