Do you want to do IT outstaffing or IT outsourcing for your team but don’t know how? Here, you will know everything about IT outstaffing. Also, this guide will help you to know how to do IT people outstaffing, IT external staff, and IT business outsourcing.
Nowadays businesses are going online the various IT companies become more and more potential. Skilled IT professionals become harder and harder to find and hire. This is why IT outsourcing is so popular these days.
If you read this IT outstaffing guide, chances are you are looking for an IT people outstaffing agency right now. Where do you start? What do you look for? What are the benefits of it? How do you check the vendor’s estimation? And what is the process to do?
Keep reading if you want to understand IT outstaffing and learn answers to the mentioned questions.
What is IT Outstaffing?
IT outstaffing is a staff augmentation process where businesses hire IT professionals from IT outsourcing companies to boost their existing teams. In this process, the IT outsourced developers continue to work at their workplaces but are fully managed by the client company. Source: Wikipedia
You can hire IT dedicated team who keep working at their regular workplace, but you’re the new employer. That’s the meaning of IT business outstaffing. Hiring IT external staff can be complex, but it is also one of your company’s most important decisions.
Suppose, you have an idea, but there is no way to implement it on your own. But you don’t want to establish a whole IT department, instead, you just want to come to another company with your idea and get an application or website ready. That is the right moment to do IT outsourcing.
Why IT Outstaffing is Important?
As you already know that IT people outstaffing model comes into use when you need to hire remote talents. But what can be the situations that lead to the need for such a model? And what is the purpose of it for your business?
That’s why here I am telling the importance of IT business outstaffing:
- You don’t need to expand your in-house team. You can remotely control the working process.
- Because of IT outsourcing you don’t need to think about the lack of free rooms in the office or any quarantine issues.
- IT people outstaffing allows companies to hire capable developers with a lower budget.
- It allows companies to require developers with new skills. Moreover, certain IT specialists are hard to find in some countries.
- By hiring IT external staff, companies can focus on their core capabilities instead of micromanaging developers.
- It also allows startup founders to devote their attention to marketing, sales, and pitching to investors instead of writing codes.
- With IT business outstaffing, the offshore vendor will manage these overheads and the administrative tasks that come with it.
- It allows companies to scale efficiently without being constrained to rigid financial commitments or physical resources.
Benefits of IT Outstaffing
If you want to turn your business to the next level then IT outsourcing is the primary motivation for you. Therefore, it becomes a common activity for most businesses.
Let’s take a look at the benefits of IT people outstaffing:
- Access to a Global Talent Pool
- Ability to Provide 24×7 Service
- Improve Business Focus
- Free Internal Resources
- Fill up Talent Gaps
- Increase Capacity
- Reduce Costs
Access to a Global Talent Pool
Generally, if you want to hire people from your surrounding, you would get limited of talent. However, when you start to outsource a project to an IT service provider remotely, you can find the best talent from all around the world and hire them to work for you.
This is one of the most beneficial parts of hiring IT external staff. It is very useful when there’s a shortage of a specific service level or a skill set in your area.
Ability to Provide 24×7 Service
Through IT business outstaffing, your service provider can offer you a dedicated team for round-the-clock availability. That means you can contact them any time you need to or want to.
Also, You won’t have to worry about hiring talent from around the world. The vendors will take care of it. This way, your IT support can be responsive, 24×7!
Improve Business Focus
Every IT development department needs to be dynamic as the IT industry is constantly working with new frameworks and emerging technology solutions.
IT Outstaffing lets companies focus on the business of making money, whereas dedicated specialists take care of the behind scenarios.
Free Internal Resources
Software development needs serious resources. Your company has to pay for hardware, software licenses, social packages, etc. But with IT outsourcing, an oversea company will be taking care of all the administrative duties, relieving you from any unnecessary official commotion.
Fill up Talent Gaps
Day by day technologies are updating. And your company should adopt them otherwise it will stay behind. It is also difficult to find experts sometimes.
IT people outstaffing is the quickest way to find the right talent for a reasonable price without tiresome recruitment that could take ages.
Increase Capacity
While a company in a growth phase faces difficulties with effective staff and infrastructure scaling. Augmenting a team of IT external staff specialists is perhaps the fastest and least costly way for a company to upscale.
Reduce Costs
There is no capital investment required for any IT business outstaffing resources. You can avoid the upfront cost of servers and other IT infrastructure, like a data center.
However, you can hire skilled human resources from developing countries for a fraction of the average cost.
Types of IT Outstaffing
IT Outstaffing is the practice of working with an employee who is employed by another company. This can be done onshore as well as offshore.
Here are 5 different types of IT people outstaffing:
- Offshore Outsourcing
- Nearshore Outsourcing
- Onshore or Domestic Outsourcing
- Cloud Computing Based Outsourcing
- Managed Service Outsourcing
Offshore IT Outstaffing
Offshore IT outsourcing means involving your IT functions with a company or freelancer in a foreign country for cost savings.
As the living costs are lower in these countries, you can save a lot of money while hiring someone. But that doesn’t mean the quality of the work is also lower. Undoubtedly, their work’s quality is so good. These countries are (Asia and Europe) popular because of their outsourcing activities.
Nearshore IT Outstaffing
Nearshore IT business outstaffing means outsourcing IT people to work for a company from a neighboring country. It would be easier to travel and communicate if any clarifications are required.
For example, if your company is US-based, outsourcing to Mexico is an example of hiring nearshore IT external people.
Onshore or Domestic IT Outstaffing
It refers to an outsourcing arrangement within your own country. It can be done remotely and also on-site, depending on your need.
It’s a worthy system to avoid communication issues due to language barriers and also time zone differences. It could crop up when outsourcing your business process to a foreign country.
Cloud Computing-Based IT Outstaffing
When you search for IT-related services from online, it’s called cloud computing-based IT outsourcing. It includes Platform-as-a-Service, Infrastructure-as-a-Service, and Software-as-a-Service models.
Here are cloud computing services:
Platform-as-a-Service
It offers customers a digital platform to run, develop and manage things without building and maintaining the infrastructure themselves. It is a cloud service delivery model.
Infrastructure-as-a-Service
It is a type of cloud computing service that offers essential computing, storage, and networking resources. Examples, include Amazon EC2, Rackspace, Windows Azure, and Google Compute Engine.
Software-as-a-Service
Software-as-a-Service is a software licensing and delivery model. It covers hosting an application online and making it available to customers.
Managed Service IT Outstaffing
It refers to creating an outsourcing contract with a third-party managed service provider (MSP) for network management functions. They offer facilities like firewalls and virtual private networks (VPNs).
The Future of IT Outstaffing
Many businesses confirm that IT people outstaffing can increase focus on core functions and save cost. In 2019, Clutch found that 37% of small businesses already outsourced at least one business function. Source: Clutch
Statista also Statista reported the total market value of the global outsourcing market to be worth $92.5 billion. More recently, 90% of companies see cloud computing as a vital aspect of outsourcing. Source: Statista
According to research, 91% of IT leaders have their own security operations center (SOC) team or in-house security talent. But 83% of those leaders are actively considering or seeking outside cybersecurity solutions.
Globally, outsourcing will reach $731 billion in 2023. IT outsourcing spending could increase 22% over 2019’s numbers to reach $519 billion in 2023. Also, BPO could increase by 19% over 2019’s numbers to reach $212 billion in 2023. Another research predicts that the business process outsourcing industry will reach $525 billion by 2030.
Skills of IT Outstaffing
When you hire IT external staff from other countries, you need to think about the skills first. Without proper skills, there is no value in hiring IT people. A company’s skillset is the highest priority when selecting an outsourced partner.
There are common 4 skills you need to look for while doing IT business outsourcing:
- Software development talent
- Reliable customer service
- Technology expertise
- Cloud computing
Software Development Talent
When you search for an IT outsourcing company, you need to must check the software development talent.
IT and software development are hot trends in the IT industry. Therefore, outsourced engineers, computer programmers, web technicians, and network operators will be a prime key to your company’s success.
Reliable Customer Service
An outsourced IT company must be able to deal with a stream of client requests. So, you need to check for their customer services also.
Reliable customer service will result in an efficient workflow. In turn, this will alleviate a significant burden on your shoulders. Therefore, you will be able to focus on your core responsibilities. And your IT team outstaffing partner is making sure client requests will be attended to in a timely manner.
Technology Expertise
You have to make sure you will select a high-quality, solution-focused company that you can rely on at all times. On the other hand, an outsourced IT company needs to have a stellar reputation in handling technological tasks.
A dedicated tech team will be constantly monitoring your system, ensuring everything is operating normally. So, you should look for their technical expertise too.
Cloud Computing
Many businesses are increasingly moving to a cloud-based environment. So, the lack of resources is among the biggest challenges for companies looking to move into the cloud.
Cloud computing is a major driver for business growth and continued development process. Therefore, it’s important to find a development center that will meet your demand for high-quality resources.
Step-by-Step Process of IT Outstaffing
In this stage, you may decide to do IT business outstaffing. But before doing this you need to know the process of hiring IT external staff.
There are 7 steps to doing IT outsourcing:
Step 1 – Define The Project Scope
Firstly, you need to define your project requirements. You have to do this before talking to outstaffing companies. It helps to start the discussion with a common understanding.
Here are some important details to consider:
- How many developers do you require?
- What skills/experience do you require?
- What’s your business nature?
Step 2 – Search For IT Outstaffing Companies
Secondly, you can search for potential outstaffing partners. After selecting the companies, take note of their locations, years in service, and areas of expertise. Gather a list of outstaffing companies that fulfill your requirements.
Step 3 – Review Portfolio And Client Feedback
Thirdly, you need to check the background of IT people outstaffing companies that are consistent with your requirements. Find out what their previous clients say about the services. Compare them and choose those that provide consistently good services.
Step 4 – Conduct An Interview
Fourthly, your company should set an interview with the outstaffing team. Look into how the outstaffing arrangement works. You need to Find out if they have developers armed with the skills that your team needs. If they have overlapping experience with your business’s operation. It helps to hire a developer who is familiar with your industry.
Step 5 – Discuss Budget, Data Confidentiality, And Other Terms
In this stage, you need to talk about the budget and other terms with IT external staff. After selecting the team, hold further discussions on the fee, confidentiality measures, responsibilities, liabilities, and other legalities. You should have a written document to prevent misunderstandings.
Step 6 – Agree On Communication Modes
It is important to maintain an open communication channel with the outstaffing companies and their developers. You and your company need to decide which method works best for both parties and agree on them.
Step 7 – Hire And Onboard
Finally, when everything is all right, sign the outstaffing agreement and formally onboard the out-staffed developers to your team. Then your HR or management team will provide clear guidelines, task scopes, and expectations to ensure they can be productive as soon as possible.
Cost Of IT Outstaffing
IT business outstaffing cost varies according to where the country’s developers are located. If you hire IT external staff from developed nations, you’d be paying expensive salaries.
Meanwhile, Asia countries offer developers cheaper salaries. Here’s a probability of the average price of software developers’ services in popular IT outsourcing destinations.
- India – $8,603 per year.
- China – $117,984 per year.
- Ukraine – $95,589 per year.
- Romania – $67,449 per year
- Argentina – $27,876 per year
Conclusion
IT people outstaffing allows businesses to quickly extend their teams with skilled developers. Generally, IT business outstaffing is ideal for businesses with long-term requirements, an adequate budget, and an in-house IT team. So, for your benefit, you can hire IT external staff from IT companies.
IT outsourcing not only saves you tons of money but also allows you to focus on your core business tasks and helps you grow as an organization. That’s why it’s important to hire IT professionals carefully.
IT Outstaffing FAQs
You may have some questions about IT outstaffing, like how to hire IT external staff. No worries, you can ask any kind of question about IT outsourcing.
Here I am listing some questions for you that people usually ask:
Outstaffing means that you need to hire professional employees who keep working at their regular workplace, but you’re the new employer.
Outsourcing is a part of your work to another company. You can hire an outsourcing company to do part of a project or to create a new product from a scratch.
Outsourcing a company means who provides external IT services.
Both models provide clients with hired IT workforce, outsourcing is more independent, whereas outstaffing relies heavily on your organizational and managerial skills. Comparing outstaffing vs outsourcing in terms of pricing, outstaffing is less costly.
This page was last edited on 29 January 2023, at 2:50 pm
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