IT Outstaffing: why it's the best for developing in covid-19 time
Outstaffing has become a relatively new option in the IT industry. If 10 years ago all companies were striving to fully complete their staff with office workers who work on a full-time basis, then today the trend is the economic use of resources. And outstaffing fully meets this trend.
The phenomenon of outstaffing itself became relevant in 2020. With the advent of the COVID-19 pandemic, many companies were forced to transfer their staff to remote work, and subsequently, due to large losses, and optimize the work of hired employees. And in the end, it turned out that IT outstaffing is one of the most profitable business models, and most IT specialists do not need an office for productive work, because they have all the main tools at hand and at home.
This approach to personnel management implies a contract in which an external team or individual employee is officially hired from the outside to perform work and a number of functions of the company. The term, although not new because it arose in the 60 and the70s of the twentieth century. Yet, it is today when outstaffing services got their maximum popularity. They were the first to try it in the USA and Japan. Times of crisis have shown the viability of such a model.
So today, in the US, outstaffing is incredibly popular, especially in the IT segment. Outstaffing services are used by companies for which it is not advisable to employ their own specialists in any work. There is no way to hire additional employees. In such cases, outside specialists are temporarily included in the staff to carry out the work. Their labor is paid by an intermediary company that provides such hired specialists. An employer, ordering an outstaffing service, can get rid of the need to fire employees who are officially registered and have a social package. At the same intermediary, outstaffers are issued in the state. All legal and accounting documentation regarding employees is also maintained by the intermediary. During the main working hours, outstaffers work for the customer, reporting directly to him.
The growth of the market for outstaffing services in the USA and Western Europe is about 35% per year. Yet it is enough to say that the companies from the world's top-list use outstaffing as well. We can list Qualcomm, Cisco, Snapdragon, and others who use outstaffing services.
In RexSoft we fully approve that trend providing our customers with skilled and experienced pros working remotely using outstaffing business model.
IT outstaffing and the Effects of COVID-19
How has outstaffing become so convenient in recent years? The COVID-19 pandemic has immobilized us all. Many lost their jobs or closed their businesses, those who stayed afloat were forced to transfer workers to remote work. And not everyone kept the exact team with which they achieved the result. The pandemic is not over yet, and many of the companies prefer not to restore the old order of things, hiring permanent staff in the office to develop applications or software, but choose to hire employees according to the outstaffing model. This allows you to save money on the maintenance of the office, not to overpay employees simply for the fact that they have already been hired. Outstaffing also cuts IT staff costs. In a pandemic era, this is especially important. In addition, work on such a system protects the health of each of the employees. Each of the outstaffing teams is completely safe because it works from home or coworking. And the rest of the time this is already his area of responsibility.
By the way, do not confuse outsourcing and outstaffing with each other. Yes, both of these management models involve the use of specialists outside the company's staff. But there is also a difference between outsourcing and outstaffing that is who is in charge of managing the hired team (or individual) that performs your tasks.
If it is outsourcing, then the control of the entire scope of work and the management of the team is carried out by the project manager of the contractor company. The client does not communicate directly with the development team.
In the case of outstaffing, the client himself manages both his own team and the team provided by the outstaffing company. But this does not mean that the owner of the client company manages everything personally. These functions can be delegated to the CTO or project manager of the company. As for the software development service provider, it is responsible for finding suitable candidates, supporting the team, and calculating salaries.
Benefits of IT Outstaffing in the COVID-19 Pandemic
Let's list the most significant outstaffing benefits from the point of view of the modern world, which is under the pressure of the COVID-19 pandemic.
Opportunity to Protect Yourself and Your Personnel
The cornerstone of the pandemic is the reduction of personal communication between people. Outstaffing allows you to do this without losing business processes. If you are engaged in software development, application design, or other IT-related business, you do not need to put your life at risk and constantly meet with employees in the office. The RexSoft employee you hired for outstaffing may be thousands of miles away, but his work will be just as effective. But you definitely won't be able to infect each other with a deadly virus.
Reasonable Budget Allocation
The pandemic has forced even the most successful developers to tighten their belts. With the reduction of the entire economy, the number of customers and orders decreased, and it became simply pointless to maintain an office. Therefore, outstaffing became a way out of the stalemate. You do not need to pay for office space, buy expensive computer equipment and monitor the presence of an employee at the workplace. Instead, an outstaffing specialist works from home, provides himself with the necessary equipment and electronics, and you just need to make a list of tasks and deadlines for him to get the result.
Variety of Opportunities Opened by Outstaffing
In the dock era, the owners of IT companies most often tried to attract the best talent to work. But there was also a peculiarity. For the chosen pro to work in your office, he must be a local resident, or you pay his rent. Outstaffing allows you to hire the best of the best around the world without worrying about the residency of a specialist.
IT Outstaffing, How Does It Work?
In the outstaffing model, the entire scope of work is usually controlled by the client himself, who has direct access to the development team. Often, customers manage a hired team (or individual) alongside their own. However, payroll is calculated by the contractor (outstaff company). In RexSoft, we offer the most comfortable conditions for outstaffing coopetation with such employment models as hourly hiring, full-time employment, or part-time hiring.
IT Outstaffing Benefits from RexSoft
In addition, outstaffing services at RexSoft have many more advantages. Let's review them briefly.
Wide Range of Pros in the Diversity of Stacks
RexSoft employs many specialists in a wide variety of stacks. In addition to the universal soldiers working full-stack, we have highly specialized professionals in the fields of IT, marketing, consulting. You can just read the resume of each of the free specialists on our website or ask for advice and a selection of employees in your outstaffing team in our office. RexSoft specialists are able to solve the most non-standard tasks. We have:
- Front-end and back-end developers;
- Development specialists in different environments and interfaces from Node 35 and JS to less-demanded codes;
- Software testers who do better than any detective;
- Marketers and SEO specialists who can make your site the first in Google;
- Professionals in UX/UI design for all types of applications;
- Specialists in enterprise solutions and entertainment applications.
All of them can help you to realize your ideas.
You don't have to worry about the legal side of the contract. RexSoft operates strictly according to US laws and enters into outstaffing contracts according to the law. You can verify this if you give a sample of our standard contract for inspection to your lawyer. Because we operate under US jurisdiction, we are fully subject to state laws.
All the Contracts are Fully Warrantied
Our services make you feel comfortable. Each contract provides for penalties if our employees do not fulfill their duties. We always go to meet the client, offer an urgent replacement of a specialist if the one you have chosen does not suit you, prevent unforeseen situations, select a comfortable work schedule for our outstaffing team.
During the COVID-19 pandemic, the whole world began to actively implement new management models. Outstaffing has become one of the most convenient for the IT industry. The ability to hire individual pros or entire development teams without the obligatory enrollment in the staff, but at the same time with full control of their responsibilities - this is convenient and rational. This approach protects us from the spread of the coronavirus while saving your money and choosing the best talent on the market. And RexSoft helps to find such specialists and start cooperation with them.
Oleksandr KryvotsiukHEAD OF MARKETING AT REXSOFT