What benefits does outstaffing provide to your company?

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What benefits does outstaffing provide to your company?

A study by Grand View Research found that spending on outstaffing and outsourcing will exceed the $936 billion mark by 2027. By comparison, expenses in 2019 were about $520 billion. This growth in the outsourcing and outstaffing market is because many companies from various industries need to develop digital solutions.

Outstaffing is a model of expanding the staff by one or more third-party IT specialists. It is gaining popularity among enterprises due to the fast attraction of highly qualified personnel and other advantages. JOBITT experts have collected all the advantages of outstaffing and are ready to tell you about each in detail.

Main benefits of outstaffing

Outstaffing helps optimize a company's operations and accelerate the launch of its own digital product, but these are not its only advantages. What else can employers count on when they turn to outstaffing contractors?

Reduced financial costs

This hiring option reduces the employing company's costs for maintaining a large staff. Outstaffing allows you to expand your team as much as the project requires while eliminating the need to spend on the materials and equipment for the job. The contracting company fully covers expenses on software, office supplies, equipment, corporate training, bonuses, or sick leave. In addition, financial expenditures on retaining an HR department are reduced since it is relieved of some of the duties on personnel selection.

Simplified personnel management

The contracting company takes care of all the legal aspects of employment. Accordingly, the client does not need to draw up employment contracts and provide social guarantees. The client also does not have to complete documentation on the payment of wages to new personnel and pay taxes on employees since all of this is the responsibility of the outstaffing company.

Saving time

A company can significantly save time finding personnel by signing a contract with an outstaff contractor. The client does not need to hire recruiters to search and select suitable resumes and conduct interviews and recruitment procedures. There is also no need to post vacancies, track responses, and close job offers. The contractor takes care of searching for suitable professionals and provides the employer with only the most relevant resumes for approval. This is very convenient when you need to quickly start developing a project or release a product on a tight deadline.

Flexible personnel management

A company that uses outstaffing services can hire as many employees as needed to work on one project. For the head of the human resources department, this greatly facilitates organizational aspects of staffing. Also, this cooperation model, depending on the scope of work, allows you to quickly increase or decrease the team of developers.

Attracting qualified specialists

Searching for highly specialized experts on the job market can be a long and complicated process. Outstaffing simplifies this process because it already has a streamlined resume database and a staff of versatile experts ready to take on a project immediately. Therefore, expanding the team with employees from the contracting company allows you to quickly select specialized and experienced specialists for your work. 

Ensuring stable operation

Hiring employees from an outstaffer gives a guarantee that the project will be completed with high quality and accuracy in the time specified. After all, the hired specialist has obligations to the outstaffing company, spelled out in their employment contract. In the case of force majeure, the contractor will always be able to offer several candidates as "replacements," which minimizes possible downtime.

Opportunity to grow the company

Outstaffing removes most of the organizational processes of recruiting employees and ensuring good working conditions for the client. This frees up more time for tasks in other lines of business. Managers will not have to be distracted by "personnel issues," so they can fully focus on the key business processes of developing and promoting their company.

What companies are suitable for outstaffing?

Expanding your team by outstaffing is a great solution for businesses and firms, regardless of their size or line of business. This collaborative model helps:

• IT companies to strengthen their own staff with qualified personnel or get an expert view from the outside;
• companies with a small IT department to implement narrowly focused or specific technologies in their products;
• companies that do not have the time to release a digital solution on their own promptly and need to accelerate the development process;
• companies that need to quickly make changes or update existing products;
• companies that want to implement their IT project quickly.

Should I use outstaffing in my company?

In the difficult economic situation in the world, outstaffing can be a "lifeline" for developing companies. It is designed to quickly solve hiring problems and significantly save the cost of maintaining your own staff. Outstaffing also allows for accelerating development processes and launching a successful product created by qualified IT specialists.