Outstaffing Web and Mobile Application Development

To reduce the risks and the burden on personnel, there are several solutions that companies are actively using.
For example, an efficiently working outstaffing model, it is especially in demand in organizations where there are no specialized IT departments.

How does web and mobile application development outstaffing work, what is it and why is it necessary?

Literally, the meaning of “outstaffing” can be defined as a temporary rental or re-registration of employees in the staff of another company. In fact, it looks and works a little differently.

You should not generalize outstaffing and freelance, as they differ significantly in the proven competence of professionals and a guarantee of labor discipline.

If the business is not directly related to information technology, it is more convenient to remove IT support specialists for the staff and thereby solve many issues without compromising staffing and renting premises.

The benefits of outstaffing to solve IT issues are obvious. In IT, outstaffing eliminates the need to formalize labor relations with specialists who are not related to the main profile of the organization, thereby the financial and administrative burden on the company is regulated quite flexibly.

That is, in simple words, outstaffing is such a system of labor relations with the necessary freelance IT specialists, which, if necessary, can be called to the office and / or downloaded remotely for urgent or current tasks.

Most companies are not related to the world of technology and development. Therefore, outsourcing is ideal for organizations that sometimes only need web resources or business development, but they cannot or do not have to load their full-time specialists in the state at all.

How they work: they take the project and are responsible for it. Which means that quality control of work and expenses for paying employees become the responsibility of the outstaffing agency, and not the client’s company.

The supplier is also required to select qualified personnel, which then provides customers with a specific task or development.

If the company the employer does not pay taxes and does not conclude an official labor contract with the employee at outstaffing, this does not mean at all that they work with the hired specialist illegally and without official registration.

All questions on official employment, taxes, insurance, contributions, etc. all of its employees are engaged in an agency or outstaffing service provider. And then it “leases” its qualified and professional workers to other companies.

This process is called Full Time Equivalent. In other words, any company can “rent” IT specialists from another company for the duration of certain works.
Any business has the right to hire outstaffing employees without officially accepting them for work and without giving them a place in their premises. Since they continue to work in their work offices, but in fact they change their employer without leaving the desktop.

Outstaffing employees can be hired by various organizations at any time, either change an employee / supplier or hire the same IT specialist to work continuously with an employment contract if he is satisfied with the company and is in demand in everything.

Why do we need such a strange system? Everything is simple - to save money. Outstaffing workers are not registered with the customer’s company, as described above, which means that they do not bear the financial and tax burden as regular employees.

Market experts argue that the use of outstaffing in the IT sector allows companies to save on taxes, pension contributions, certification and retraining costs, as well as corporate parties and other events. Savings come up to 30%, compared with an employee drawn up on an employment contract.

Of course, this is just interest, and not several times the benefit, but still it turns out quite a lot.

What are the benefits of outstaffing web and mobile application development?

In addition to saving the budget and the workplace, there are pluses and they are noticeable not only in monetary terms.

1. no need to adjust to the staffing table;
2. There is no risk of litigation due to violation of the employment contract;
3. The minimum likelihood of conflict between employees in the office;
4. quick and efficient staff recruitment or reduction;
5. the ability to transfer tax liability to a company that provides outstaffing staff;
6. minimum probability of violation of the deadlines due to disability or force majeure;
7. selection of qualified personnel exclusively for the needs, requirements and activities of the company.

Of the above, we summarize: outstaffing in development or the IT industry allows companies to focus all their means and resources of full-time employees on the main form of activity for the company. This means that it does not allow the team of developers from the state to be drawn into a vicious circle of constant, distracting from the main work, tasks and technical problems.

For these purposes, and attract third-party outstaffing workers.

Global companies are actively using this service, but it is worth noting that demand grows only as the business grows and develops. Small and medium-sized organizations prefer to hire temporary contractors rather than keep freelancers on salary.

The IT specialists hired for the staff make up only 14% of the main staff, and it is these employees who most often work remotely, or simultaneously in several companies.

The growing number of IT projects, with the development of modern technologies in business, depends on the success or failure of the company's ability to complete and complete all its IT developments on time.

Moreover, keeping within the budget and specifications can be quite difficult without sufficient knowledge or trained specialists. Especially when the creation of an information technology product is not the main profile of the company, but only an additional tool for its promotion on the market.

Hence, the demand for “freelancers” and outstaffing at large organizations is growing every year. Why keep a development team on staff if a mobile application or something else from the IT field is needed 1-2 times a year, when you can hire or rent a qualified developer only for the time needed.

In the business world, they understand this and actively use the services of outstaffing providers.

Because it is convenient, cheap and the customer pays only the labor time of an outstaffing specialist in his projects.

“Borrow” the necessary personnel has long been a familiar and streamlined process in the business sphere. Especially a lot of borrowing or leasing in the field of IT development.