Every business needs qualified specialists. But not all companies have the ability to hire the necessary number of employees because of the high costs. Therefore, many organizations use freelancers as needed, outsourcing or outsourcing the management of their business processes.
Organizations, which searched for highly specialized staff, first appeared in the U.S. in the 1950s, but in Ukraine this service has been in demand only since the late 90s.
Let's try to understand the peculiarities of outstaffing and outsourcing concepts, the pros and cons of these services. And let's make sure of the importance of the service for your business.
Due to the fact that these areas are fairly new to the Ukrainian market, many companies confuse this concept or interpret it in their own way, so it is important to clearly define the difference between outsourcing and outstaffing.
Outstaffing is a process in which one company temporarily lends its employees to another company's tasks. In IT, technical specialists, designers, developers, and other experts are allocated to solve digital tasks. In this case, the employees come to the office of the company that hires them but are registered in the firm that provides outstaffing services.
Outstaffing is mainly used by companies with at least 100 employees. The service is also popular among startups that want to get the specific specialists they need for development without too much hassle, which is difficult to find in any other way.
The most common types of outsourcing there are:
The mediator takes on the tasks of payroll, taxes, labor law compliance (hiring, sick leave, firing, etc.). At the meantime, employees devote all the time to projects for the client company. In turn, the staff are directly managed by their executives. One of the main differences between this service and outsourcing.
Thus, it is a profitable form of cooperation for all.
Some people have a misconception about such a form of employment as outstaffing. Others think it is the same as outsourcing. In this case, it's not at all like that. There are major differences, and below we'll look at what they are.
Outstaffing and outsourcing have long been an issue in business. Each strategy has its pros and cons. Why do some companies choose outstaffing for IT development, while others use outsourcing?
Outstaffing helps the customer optimize his activities, and as a result he gets:
The key thing when opting for this service is to find a skilled, qualified provider who is able to provide quality service without coming into contact with existing labor laws.
Common reasons for using outsourcers in IT include:
The demand for outsourcing services has increased in recent years because of the effects of the pandemic. But the most successful firms were using this method even before the lockdown.
Outstaffing involves specialists from the company who have become a team under your supervision. You can control your employees, give them tasks and communicate directly.
With outsourcing, you outsource tasks to workers, which he performs on a contract basis.
For example, creating a turnkey website is a job for which you can invite in-house developers or outsource the project to another company. In this case, the company is fully responsible for the result.
Here are some of the benefits of such employment relationships:
Working with outsourcers has certain risks:
But these disadvantages can easily be foreseen in advance and secured with the appropriate conditions in the contract.
Both outsourcing and outstaffing will yield excellent results for businesses.
If a business needs to hire remote professional skills, there are two great options to choose from. Both outsourcing and outstaffing will help with company goals and business development.
What makes Ukraine a desirable and reliable place for outstaffing?
So, Ukrainian outstaffing allows you to add highly qualified developers and correctly size your team for a project, allowing you to quickly start a large project or scale your team to meet deadlines.
Here is 3 steps on how to work with a Ukrainian outstaffing company:
This is the start of a personalized matching process. Schedule a free introductory call with an advisor – a personal contact at the company. They'll make sure the talent is matched perfectly to your needs.
A vetted shortlist of candidates will soon be available. The company selects the most suitable candidates from its pool, conducts individual pre-screening, and then arranges interviews for the customer.
The company ensures that the contract is signed and invoiced. Until then, there are no obligations.
As for the pricing models of Ukrainian IT companies. The cost of services depends on several factors, such as:
In order to minimize the risks of legal aspects, it is necessary to pay attention to the execution of contracts:
So, outstaffing implies that the company will allocate employees for a certain time, and you will distribute their duties.
In conclusion, it is worth adding that most companies today are satisfied with the services provided by freelancers from Ukraine. Outstaffing and outsourcing allow companies to optimize business processes and reduce personnel costs. It solves the problem of hiring specialists for a short or long term.
The main thing is to choose the right contractor or specialist, to whom you are going to delegate certain responsibilities, to see all the advantages of outsourcing or outstaffing.
In simple words, outstaffing is a procedure in which a company gets a temporary employee to perform specific tasks. This can occur because no specialist in its staff can solve the problem, and hiring and maintaining him permanently is economically unprofitable.
Expanding the IT staff is an external hiring strategy to recruit skilled professional tech talent on a temporary or permanent foundation to replace necessary positions on that team. It enables the businesses to choose only the candidates that match their demands and to downsize or augment the enlarged team when appropriate.
Augmentation is an out-sourcing concept that is employed to staff a business project and meet the goals of the business. The technical involves assessing existing staff and then identifying what extra skills are essential.
More and more organizations are facing critical shortages when it comes to available talent.
Staff augmentation is nothing less than bringing in full-time employees through a third-party provider.
This is important when an organization partners with a staffing vendor, either a broad-based organization or a specialized organization, to obtain the key talent needed to fill available positions.
Instead of hiring a staff (or working with a temporary staffing agency), the augmentation partner will provide a consultant with such benefits needed for the position: education, training, experience, and certifications
Outsourcing is the practice of hiring an outside company to provide services or products to a business. It involves transferring certain business operations to a third-party provider, which then performs the tasks in-house or offsite. Outstaffing, on the other hand, involves hiring a third-party provider to supply personnel for specific tasks or projects. The provider provides employees who work in the company’s office or remotely, and the company pays the provider a fee for their services.
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