What is Outstaffing and Why Should You Adopt It?

As numerous sources indicate, the expenses associated with employing software developers have experienced a significant increase throughout the United States and Western Europe.

Consequently, there has been a notable rise in the adoption of outsourcing practices aimed at leveraging labor cost differentials. This strategic shift is not only witnessing widespread adoption but is also assuming growing importance within the business landscape.

However, if you’ve been looking for new engineering talents to either complete tasks or bridge skill gaps within your team, you’ve likely encountered terms like Outstaffing and Outsourcing.

Outsourcing is when one company hires another company to do work or make products that it could do itself. For instance, a company might get another company to handle its IT department. In outsourcing, the hiring company doesn’t have as much control over the work, and the workers aren’t seen as part of the hiring company’s staff.

If you want to dig deep into Outsourcing, we’ve recently written a detailed piece on it. Read it here – Software Development Outsourcing.

On the other hand, Outstaffing is when a company brings in employees from another company to work for them. These employees are still employed by the original company, but they work on projects for the new company and are managed by them. In outstaffing, the new company has more control over the work, and the employees are seen as part of their staff.

So, let’s dig deep into the reasons why you should opt for Outstaffing.

Here are the benefits of Outstaffing in detail:

Outstaffing offers a cost-efficient solution for businesses in the realm of software development. By leveraging an external team, businesses can avoid the overhead expenses associated with hiring and maintaining an in-house team of developers.

For instance, costs related to employee benefits, office space, hardware, and software licences can be significantly reduced.

Moreover, outstaffing providers often operate on a larger scale, enabling them to distribute expenses across multiple clients. This leads to economies of scale, allowing them to offer services at a lower cost per project.

In the fast-evolving landscape of software development, businesses frequently require expertise in niche technologies or programming languages. Outstaffing facilitates access to a diverse talent pool that possesses specialized skills and experience.

For example, if a company wants to implement a machine learning solution, it can tap into an Outstaffing partner with a team of data scientists proficient in the required algorithms and frameworks. This empowers the company to undertake projects that demand a skill set they may not have in-house.

Software development projects often exhibit fluctuating resource demands. Outstaffing allows businesses to flexibly scale their development team according to project requirements.

This means that if your company is working on a time-sensitive project that demands additional developers, you can quickly onboard outsourced engineers without going through the lengthy hiring process. Likewise, during quieter periods, the team can be downsized, helping you avoid paying for idle resources.

You can outstaff non-core activities, such as infrastructure management or quality assurance, to concentrate your internal resources on delivering exceptional software. For instance, a company developing a cutting-edge mobile application can delegate server maintenance tasks to an outstaffing partner, allowing its internal team to focus solely on refining the app’s features and user experience.

Outstaffing providers have a vested interest in delivering high-quality work to maintain their reputation and secure ongoing partnerships. In the context of software development, this means that businesses can expect a higher standard of code, thorough testing, and adherence to best practices.

For instance, if you outstaff your front-end development to Techtic, you can rely on experts who specialize in user interface design and ensure a polished, user-friendly application.

The process of hiring and firing employees can entail significant legal and financial risks, particularly in jurisdictions with stringent labor laws. Outstaffing mitigates these risks as the responsibility for employment matters rests with the outstaffing provider.

In the event of unforeseen challenges, such as a project delay due to technical issues, businesses are insulated from potential financial liabilities. Outstaffing companies often carry insurance policies that safeguard both parties from unexpected financial losses, bolstering confidence in project execution.

We, at Techtic offer Outstaffing services that you can leverage to scale up your software team. Here are the reasons why you should pick Techtic as your Outstaffing provider: