The demand for IT specialists is constantly growing, and the search for personnel can turn into a real quest. It is difficult to find a suitable master, especially if you need to close only a few small projects and you need a person temporarily.
What is outstaffing
The out staff model has existed on the market for more than 15 years, but companies do not always know what it is and how it will help their business.
In short, outstaffing is the withdrawal of personnel from the state. There is a company that needs specialists, there is an outstaffing organization that is ready to provide such employees. And some people want to work under similar conditions.
The outstaffing organization is engaged in the selection of personnel, distributes tasks between them, transfers salaries to people, and looks for a replacement for them (during sick leave or in case of dismissal).
Speaking in rough and simplified terms, an outstaffing organization offers its employees for rent - temporary use by another company (client).
All this distinguishes outstaffing from outsourcing. The client company can freely assign tasks to specialists who have arrived under the contract, redirect them to other projects, redistribute the workload between them, and change and refine the TOR in the process of work. The outsourcing company may require an additional fee for any of the listed actions, the out staffer will not do this, and this is included in the contract.
Thanks to this outstaffing agreement, it is more profitable and easier to find and involve rare or highly qualified specialists in the project for a short period:
backend and frontend developers;
UI and UX designers;
programmers for applications on Android and iOS;
SMM and SEO specialists.
Outstaffing of employees is beneficial to use if the company:
looking for ways to reduce staff costs;
tries to focus on the core business (and outsource side projects);
looking for a rare specialist for a short-term or one project.
In some other countries, this is a very popular work model; in Russia, not all companies understand the benefits of outstaffing employees. Meanwhile, the main advantage of IT Outstaffing Model is the optimization of jobs and processes within the client company.
In addition, there are other benefits:
Regular and incoming employee ability checks. There is no need for test tasks and checking the knowledge of a specialist, the out staffer has already checked him and sent him to different tasks. From the very beginning, you can immerse him in a complex project, he has the necessary qualifications.
Significant reduction in financial and time costs. Accounting costs are reduced - they do not need to pay salaries, accrue sick leave, bonuses, and other payments. The HR department does not have to rework either - there is no need to search for employees, interview, monitor, train, and help during the first months of work.
Flexible personnel management. The company takes as many employees as it needs to perform current tasks. People are not just sitting (if there is not enough work) and are not overloaded (if there is too much of it). No need to constantly hire or fire people from the state. If someone does not fit, they quickly and free of charge select a replacement. In the event of a huge amount of work, you can quickly strengthen the team.
Stable and guaranteed execution of tasks. The client company is insured against cases when a person quits abruptly or goes on sick leave. In any force majeure, the outstaffing organization will quickly find another worthy candidate to take its place. This also applies to rare personnel, that is, the company does not have downtime in search of an employee.
Regular reduction of insurance and other risks. The client company does not have to resolve labor and insurance disputes with employees.
Decreased interest in the labor inspectorate. The outstaffing organization bears all responsibility for the personnel provided. All possible fines, sanctions, etc. fall on the out staffer.
Another, not so obvious plus is an increase in expenses on the balance sheet and a reduction in income tax. There is no financial and administrative burden on the client company, while it manages the received employees.