Last Updated on 2024-10-11
Outstaffing is an excellent way for your business to lower operations costs, increase productivity, and get access to a wider pool of talent. However, this setup poses some challenges when youโre unfamiliar with how it works. This is why having a reliable outstaffing company as a partner is crucial.
Choosing the ideal outstaffing partner can be challenging. You have to consider several factors, such as dependability, compatibility, security, and communication. Weโll provide some tips on choosing the ideal vendor for your projects. Letโs start this discussion by understanding the services an outstaffing company provides.
What Is An Outstaffing Company?
Outstaffing companies are like your team-building partners; they help you enhance your teamโs capability by hiring staff from outside your company. This external staff is employed by the outstaffing agency but works exclusively for your projects, aligning with your management and company culture.
What Does An Outstaffing Company Do?
Outstaffing is a remote hiring strategy thatโs commonly employed in the field of information technology. Software developers, in particular, are the most in-demand experts in the field. This is why businesses are having a difficult time finding and hiring them. As a result, companies turn to the outstaffing business arrangement.
This strategy helps you access more experts from other places and add them to your existing team. This team will work exclusively on your project; however, all the legal and work arrangements of these โoutstaffedโ experts will be handled by an outstaffing partner.
An outstaffing company handles all the legal paperwork, the employeeโs work setup and equipment, and other employee management tasks. Depending on your contract, they can assist at all levels. They can help in recruitment, onboarding, and project management. In short, they provide the resources you seek to augment your team.
As a result, you maintain greater attention on your tasks and requirements and manage your distant department more effectively. Remember that the team works under your supervision; all communications will be directly channeled to you.
Outstaffing Companies in the Tech Industry
Outstaffing companies are important in the tech industry’s dynamic and fast-paced environment. As businesses struggle to keep ahead of the market and meet ever-changing technology demands, outstaffing offers a flexible and efficient answer. This strategy improves project efficiency and equips firms to negotiate the ever-changing tech sector landscape with better resilience and agility.
Recruiting Software Developers through Outstaffing
One of the biggest benefits of outstaffing is its cost-saving business model. Itโs a great option for a startup to reduce recruitment costs significantly. An outstaffing contract agreement allows smaller businesses to build a team for software development at a much lower rate, with more flexibility in setting the scale and scope of the project.
However, not all outstaffing providers are familiar with recruiting tech experts. This is why it is important to find an outstaffing consulting firm that works with IT talent. You’ll need an outstaffing provider that knows how to find, screen, and manage experts in tech.
Outstaffing companies like Full Scale, specialize in connecting businesses to qualified candidates. We provide them with various experts for their app and web development projects. Our clients can screen and select candidates through our recruitment platform. We arrange a flexible setup for team management.
Tips on Selecting the Perfect Outstaffing Company for Your Business
Now that weโve established how the outstaffing arrangement works, let’s discuss how to find a good outstaffing company.
1. Set specific goals and expectations
Before starting your search for a potential outstaffing company, you must clearly know your goals and the type of experts you need. A specific scope and criteria will make finding the right service provider easier.
Set the main objectives, KPIs, and the service level agreement (SLA) you plan to make with the vendor. Additionally, itโs important to determine how involved the vendor will be in the project. Plan out how much information youโre willing to share with them.
Lastly, ensure you have the right resources to make a remote arrangement work. Can you manage a remote team? Have all the data security practices and legal protection in place. Along with that, prepare the complete software for new hires and communication tools for the remote setup.
2. Do your research and due diligence
After compiling a list of potential outstaffing partners, you can check their credentials and verify their qualifications. You can start with their web reviews, awards, certificates, references, and portfolio.
Additionally, you can request samples, case studies, or presentations of their previous projects. You must confirm that they have the necessary training, knowledge, and reputation in the industry.
A thorough vetting process is crucial to hiring a dependable outstaffing company. Platforms like Clutch offer invaluable insights through client testimonials that gauge service providers’ reputations. Additionally, a visit to the vendor’s website can shed light on their years in operation, mission, and specific areas of expertiseโall of which should align with your project needs. Consider this phase a matchmaking exercise: the better you understand your candidates, the more likely you are to find the right partner.
3. Assess their fit and compatibility
The outstaffing companyโs compatibility with your culture, values, and vision should also be considered. Work with a company that respects your standards, understands your needs, and shares your ambitions. During the interview process, gauge how prospective team members handle real-world challenges pertaining to your project.
To support your service activities, you also need to ensure they have the appropriate resources, procedures, and systems.
Ensure the third-party company has the required proper infrastructure, technology, and security measures. Check if they have the right personnel, qualifications, and training. And lastly, see if their languages, culture, and time zones wonโt become a hurdle in communication.
4. Negotiate the terms and conditions
Negotiation is a critical step; it sets the partnership’s tone. Insist on having all terms written down to avoid future misunderstandings. You want to ensure that you get the most for your money and that your interests and rights are safeguarded.
Make sure to cover the scope, deliverables, deadlines, expenses, payments, quality control, warranties, liabilities, privacy, dispute resolution, and termination terms. Additionally, you should thoroughly read the contract and, if necessary, obtain legal counsel.
A well-negotiated, clear contract is like a roadmap for collaborationโit keeps both parties on track and protects interests. Be prepared to compromise, but know your non-negotiables to maintain a healthy, productive relationship.
5. Establish a strong relationship
The final step is to build a solid rapport with your outstaffing partner. You want to foster cooperation, respect, and trust. Give feedback and direction, communicate frequently and explicitly, and act quickly to resolve problems.
Maintaining open communication channels, like Slack or Asana, keeps everyone informed and engaged. Also, make the onboarding process welcoming and informative; this helps new team members feel integrated and valued.
Moreover, you should congratulate them on their victories and acknowledge their accomplishments. They should be treated more like a team member than outside help. You may encourage a long-lasting, mutually beneficial partnership by doing this.
Risks of Outstaffing: Things to Watch Out For
With all its benefits, outstaffing can still be challenging and risky. One of the biggest risks is getting caught up with legal issues, especially from the outstaff teamโs side. If youโre unfamiliar with the laws of the place youโre outstaffing from, you may unintentionally violate local regulations.
Communication gaps can lead to project setbacks, especially if your extended team operates in different time zones or speaks different languages. Data security is another concern, as sharing sensitive information outside your core team requires strong data protection measures. Additional management can also be a challenge; your team has to juggle supervising outstaffed employees while managing their internal duties.
Another issue to watch out for is falling into bad deals with the vendors. If you donโt know how to negotiate a proper deal in an outstaffing arrangement, the vendor could take advantage of you. You have to ensure your chosen outstaffing company has a good track record of successful projects. This is why itโs important to prioritize reputable IT outstaffing companies.
Overall, due diligence is necessary when venturing into remote hiring. The safest route is to double-check the vendorโs background and read reviews about their past projects.
Benefits You Get in Partnering with A Software Outstaffing Company
Taking on software development projects can be difficult when you don’t have a technical background. This is where a strategic partnership with a software outstaffing provider may make all the difference. Outstaffing allows you to build specialized teams, access a worldwide talent pool, and realize cost savings.
Collaborating with a software outstaffing company gives you a competitive advantage in navigating the ever-changing technological world. Here are the biggest advantages of outstaffing your software team.
No hidden costs
Partnering with an IT outstaffing company guarantees a pricing model as transparent as a crystal-clear lake. With no additional or concealed fees, they starkly contrast the surprise charges you might encounter elsewhere. You’ll pay for your needed talent without any unwelcome financial surprises creeping into your budget.
Benefits include:
- Cost predictability
- Transparent billing
- No unforeseen charges
Best for:
- Businesses looking to manage projects with a clear cost structure
Hand-picked candidates
Outstaffing is akin to crafting a made-to-measure suit, you get candidates who are hand-picked to fit your unique project needs. With a meticulous matching process, you can ensure each developer is technically proficient and a seamless addition to your team’s culture.
Top 5 Features
- Tailored selection process
- Comprehensive skill vetting
- Cultural compatibility evaluation
- Rapid candidate sourcing
- Regular talent pipeline updates
Benefits
- Aligned team synergy
- High-quality talent with great work ethics
- Time-saving on recruitment
- Enhanced project outcomes
- Reduced turnover rate
Cons
- Possibly a longer initial setup time
- Limited to the provider’s talent pool
Best for:
- Organizations seeking candidates that align with specialized skill requirements and team dynamics
Predictability
When working with our outstaffing company, predictability translates to peace of mind. It means you can look forward to a stable, consistent work output that keeps your project on schedule. This predictability fosters trust and allows for comprehensive planning and budget management.
Top Advantages
- Consistent quality of work
- Scheduled deliverables and milestones
- Project transparency
- Effective resource allocation
- Regular progress updates
- Reliable project timelines
- Ease in project management
- No unexpected delays
- Clear financial planning
- Stress-free client experience
Cons
- Less flexibility for spontaneous changes
- Can be challenging in a highly dynamic project scope
Best for:
- Businesses valuing steady progress and clear expectations in their project deliverables
Shared Account Specialist
A Shared Account Specialist answers your calls and guides your decisions. They are your main point of contact, ensuring that all your queries and concerns are addressed efficiently and effectively.
Top Benefits
- Personalized support
- Direct line of communication
- In-depth project knowledge
- Tailored customer service experience
- Stronger alignment on project goals
- Streamlined conflict resolution
Cons
- Account Specialist’s availability may vary
- They may handle multiple accounts, not exclusively yours
Best for:
- Businesses looking for personalized support and a direct communication pathway with their outstaffing partner
Flexibility
When you hire outstaffing services, you get a lot of freedom in the setup. Flexibility in outstaffing is like having a Swiss Army knife for your project โ the versatility can adapt to changing project scopes and needs. You can scale your team up or down easily, adapting to workloads and maximizing your resources without being bogged down by rigid contracts.
Top Features
- Scalable team size
- Adjusting skill sets as needed
- Adaptive to project demands
- Quick response to market changes
- Temporary or long-term placements
- Operational agility
- Cost-effective resource management
- Just-in-time expertise
- Reduced overhead
- Competitive edge
Cons
- May require additional management efforts
- Potential for adjustment periods with team changes
Best for:
- Dynamic projects and companies that need to pivot quickly in response to market trends or project demands
Certified Outstaffing Company
An outstaffing company must be held accountable for its transactions and comply with legal regulations as a show of its professionalism. As a client, you are assured quality service that meets industry standards, delivered by a legit outstaffing provider.
Best Benefits
- Accredited by industry-recognized institutions
- Compliance with international standards
- Regular audits and assessments
- Training and development for cutting-edge practices
- Recognition by industry peers
- Assurance of high-quality service
- Mitigation of compliance risks
- Access to global best practices
- Professional integrity and credibility
- Continuous improvement culture
Cons
- Potentially higher costs due to quality investment
- Longer initial process for compliance reasons
Best for:
- Enterprises requiring assurance of service levels and industry standard compliance in their outstaffing needs
Full Scale: Outstaffing Company and Your Dedicated Partner
Looking for a reliable outstaffing partner? Full Scale can help you assemble a dedicated remote software development team to build your web application from scratch. Weโve partnered with several businesses in scaling their team by providing the best IT talent and innovation.
Full Scale is an established IT outstaffing company. We help a software startup hire, train, and manage remote employees. We thoroughly screen candidates beforehand so you can meet highly experienced experts.
Our developers, testers, and leaders are experienced and knowledgeable about their respective tech stack, having worked on various development projects. We assist clients in building their tech dream team.
Working with Full Scale allows you to experience a hassle-free approach to scaling your team. If you’re looking to grow quickly or adapt to peak loads, Full Scale provides the expertise to do so efficiently. Leave all the hassles of recruitment in our hands and focus on the core matter of your business.
Whether you need coding experts, DevOps specialists, a QA tester, or a project manager, Full Scale ensures your development needs are met with a fast, budget-friendly recruitment process. Whatever technology stack you need, we’ll have the right experts for the job. We offer an agile, scalable solution, helping you to build up or down your team with top talent as your project requirements change.
So, are you ready to discover the best developer talent in the industry?
Book Your Consultation Today!
Frequently Asked Questions
What is the difference between outsourcing and outstaffing?
Software outsourcing involves handing over an entire project or function to a third party. A software outsourcing company will fully control how the development process will go. IT outsourcing services are typically organized by the outsourcing vendor and offered in a fixed structure.
Outstaffing, on the other hand, refers to hiring individuals through a third-party employer to extend your team. And when you outsource, you delegate project management and execution. Whereas in outstaffing, you retain control over day-to-day management.
Can I hire one developer or do I need to hire the whole team?
Depending on your project’s complexity and scale, You have the flexibility to hire one developer or assemble an entire team. Outstaffing services are tailored to fit any requirement, whether you seek an individual expert or a diversified skill set within a team. You will get a suite of business solutions from your outstaffed team.
What countries do companies outsource from?
The Philippines is one of the best countries to outsource software development. It has a large IT talent pool with great incentives for foreign investors to hire their workers. The country is recognized as one of the top destinations for finding and hiring experts in tech.
IT Outstaffing Trends You Don’t Want to Miss in 2024
In 2024, IT outstaffing trends are leaning towards advanced technology integration and remote work enablement. Companies are embracing emerging technologies like AI and machine learning to stay ahead. There’s also a prominent shift towards cloud-based services and cybersecurity, as these are critical in supporting the distributed workforce model that outstaffing relies on.
Staff Augmentation vs. Consulting: What to choose?
Staff augmentation means you beef up your team with extra hands for existing projects, keeping control in-house. Consulting, on the other hand, is when you seek expert advice to solve specific business problems or to strategize. Choose augmentation for capacity, and consulting for insights and specialized knowledge.
Matt Watson is a serial tech entrepreneur who has started four companies and had a nine-figure exit. He was the founder and CTO of VinSolutions, the #1 CRM software used in today’s automotive industry. He has over twenty years of experience working as a tech CTO and building cutting-edge SaaS solutions.
As the CEO of Full Scale, he has helped over 100 tech companies build their software services and development teams. Full Scale specializes in helping tech companies grow by augmenting their in-house teams with software development talent from the Philippines.
Matt hosts Startup Hustle, a top podcast about entrepreneurship with over 6 million downloads. He has a wealth of knowledge about startups and business from his personal experience and from interviewing hundreds of other entrepreneurs.