How to Hire Subcontractors for IT Projects
In this guide on how to hire subcontractors, we’ll cover all ins and outs of the process. But first, let’s define what IT subcontracting services represent.
Subcontractors are independent service providers, whether it is an individual or a company. In the case of subcontracting, a business hires such a company or individual to work on a specific task of a job that they usually are unable to complete themselves.
An IT subcontractor can be hired to develop an app, provide data migration, increase data protection, etc. Any type of task or a project a business needs help with.
Why is working with an IT subcontractor profitable for businesses? Here are the main reasons:
- They can get specific projects done faster;
- It allows completing tasks that couldn’t be otherwise done in-house. If it is a one-time job, there is no reason to hire a new team in-house, it is much more cost-effective to delegate the task to a separate provider.
- It frees in-house resources that can focus on the core activity of the business;
- It is a flexible and measurable type of cooperation. Subcontractors for hire usually work on a project basis and can be let go as soon as the project is complete.
Another important feature of subcontractor services is that such providers work independently; there is no need for micromanagement or constant control. It can be extremely beneficial for small and medium-sized businesses when they are growing rapidly and cannot deal with many tasks. So as not to scale down, it is reasonable to delegate some areas of responsibility to experts.
Cases When One Needs to Hire Subcontractors
As with any other type of business cooperation, it is important to know when a subcontractor company is the best solution to a particular issue. Of course, every case is different, and it is impossible to name all of them, but let’s go over the main situations when an expert software developer subcontractor is necessary.
Lack of in-house expertise
The first situation is when a business works on a specific project that they cannot complete on their own because of the lack of expertise. For example, you are developing an eCommerce store, but you need to ensure the highest level of data protection because of the sensitive information you are working with. Instead of trying to figure out such complex tasks on your own, you can hire a subcontracting company or an individual that are experts in data protection and cyber security.
In such a case, a subcontractor will be busy with data protection while you can focus on other parts of website development. It ensures the highest protection and speeds up the process as tasks are done simultaneously.
Scaling the product/service fast
The second example of when to hire a software developer subcontractor is rapid business growth. Let’s say your eCommerce store is already working, and the number of visitors increases exponentially. It means that the infrastructure should also grow to keep all the data and not slow down the site. Someone needs to set new infrastructure and maintain it quickly because you do not want to miss momentum. Here is where a subcontractor web developer company comes to the rescue.
Outsource routine tasks
The third situation is when a business wants to free in-house resources out of some mundane and routine tasks so that they can be busy with core activities. For example, it can be something in the line of implementation and maintenance of a CRM system to increase customer satisfaction. So they search for an experienced service provider to take over this job.
Release the product faster
And another great example is when a company wants to beat the competition and release a project faster or develop several at the same time. For example, you have developers that work on your iOS app, but you also want to release the same app on Android at the same time, which requires separate development. You can simply hire an app development subcontractor for the Android version and have both products released at once.
Often the case, it is all about prioritization, especially for a developing business. Some tasks should be done in-house, but others can be delegated, for example,
- Social media;
- Human resources;
- IT infrastructure administration;
- Web development;
- Data migration;
- Cyber security, etc.
With this type of cooperation, small businesses can access specialized skills fast and without breaking the budget. It also allows taking on bigger and more ambitious projects, which increases bandwidth.
Difference Between Outsourcing and IT Subcontracting
Often these terms get confused because of some blurring lines. But these two practices have their distinct differences. Of course, subcontracting is an older term, while outsourcing is rather new. But it is not the only distinction. The main difference is the amount of control a client has over the work and whether the same tasks could be done in-house or not.
Outsourcing is an incredibly popular practice to cut costs when tasks that could be done in-house are outsourced to a third-party provider. For instance, a web development company outsources part of the development to another country and this way reduces payroll costs simply because the hourly rates of professionals differ hugely amongst countries.
Subcontracting mainly refers to delegating tasks that couldn’t otherwise be done internally. For example, a small producer of travel gear wants to open its own website. Their in-house team doesn’t consist of web developers, so they need a developer subcontractor to do the job.
Subcontracting also doesn’t mean permanent cooperation. In most cases, it is a project-based agreement. As soon as the job is done, the contract is over. Outsourcing, on the other hand, can be a long-term or even permanent option.
Here is a comparison table to illustrate all the differences:
Benefits of Hiring a Subcontractor
Before you start to scroll for subcontractor resume software developer samples, it is crucial to know all the benefits such cooperation offers.
- Subcontractors work independently. Unlike in-house employees or permanent outsourcing teams, they do not require a lot of management and control. Simple briefs should be enough to make sure the work is going according to plan. It saves time and resources.
- They can also adjust the schedule for your project. Employees work on fixed hours, while subcontractors can perform whenever you need them to. For example, hiring subcontractors for tasks that only appear from time to time is cost-efficient, like data architecture or system repairs. In this case, you’ll only pay the IT sub contractor hourly rate instead of having a full-time employee.
- Such projects are easier to estimate. Subcontractors get paid by the project according to the subcontractor services agreement that clearly states what should be done and how much will be paid.
- It is easier in terms of hire and employee-related paperwork. And such providers have fewer tax obligations as well.
- Hiring an employee for a project and then letting them go can be pretty hard. But it is not a problem with subcontractors because they do not expect permanent employment. They are great for temporary work and are easy to let go of.
How to Hire a Subcontractor
How to hire subcontractors web developer efficiently and adequately? There are three steps in this process:
Step 1. Identify potential candidates
The first thing is to find candidates for the job. You can ask for a recommendation, look online, or search amongst your previous contacts. To make sure that the candidate is suitable, is it important to
- Check the feedback – there is nothing better to prove the quality of services than recommendations from previous clients. Check the service provider online to see what others have to say about their performance.
- Do a background check. It is especially important for those partners who will be working with sensitive data.
- Look at the portfolio. If it applies to the required type of services, ask for a portfolio of completed projects. If you like what you see – it is a suitable candidate.
Step 2. Hire the best-qualified subcontractor
Once you’ve narrowed down the list of candidates, it is time to settle with the best one.
Before you make an offer, make sure to conduct an interview and communicate a little. You can also check their abilities by asking them to do a small test task.
To be completely sure, a business can also sign a small project with a subcontractor before working on the bigger one to see how they perform.
Step 3. Sign a contract
Before the work starts, it is crucial to sign a contract that defines the key elements of cooperation. A web developer subcontractor agreement should spell out:
- Scope of the project;
- Subcontractor job responsibilities;
- Web developer subcontractor rate as well as the overall payment for the job;
- NDA (Non-disclosure agreement);
- Intellectual property right if applicable;
- Terms of termination.
Working with a lawyer on such a contract is always a sound idea to make sure both parties are protected.
Benefits of Finding a Subcontractor In Ukraine
Of course, a business can choose a local service provider, but it is worth considering the many benefits Ukraine has to offer in this regard. Ukraine is one of the growing IT hubs in Eastern Europe that offers high-quality services for international businesses.
- Ukraine has a well-developed IT industry and infrastructure. Global businesses have offices here (Microsoft, Samsung, Boeing), and there are also lots of R&D centers. The country has 43 universities offering degrees in Computer Science to fulfill the demand for specialists.
- The hourly rates here are significantly lower than in the EU, US, UK, or Canada. It allows saving money while accessing specialized skills.
- The location makes Ukraine extremely convenient to European partners as there is little to no time difference, and traveling is relatively easy as well.
- As a European country, Ukraine has similar business ethics and values as other EU representatives, making cooperation smooth and effective.
- Ukrainian developers are known for high-quality work and excellent performance.
Mobilunity – Trusted Ukrainian Provider
If you are looking for an experienced IT subcontractor and software consultant company in Ukraine – search no more. As an outstaffing company with 10+ years of experience, Mobilunity can help you access local IT talent with no extra effort from your side. If you need on demand CTO that will improve the development processes in the company – you are welcome to contact Mobilunity.
Mobilunity provides dedicated development teams and professionals for international businesses of all sizes and industries. Amongst our satisfied clients, we are proud to name XPLG (Israel), I-Doit (Germany), esurance (Switzerland), and ICUS (Canada).
We are also a great choice if you are interested in subcontracting in Ukraine. Our team can find any type of professional for your project.