IT Staffing as a Profitable Solution for Software Development
As mentioned in the State of European Tech 2020 report, the accelerated pace of technology development caused an immense lack of experienced IT specialists and created high demand for IT resources. This caused companies to flock to outsourcing markets for a wider choice of software development talents at more affordable rates.
Nowadays, IT outstaffing is one of the most popular hiring approaches that allows for recruiting skilled IT specialists on the terms and per the company’s needs. According to Google Trends, IT staffing popularity is stable and no wonder that according to the Statista survey, the global IT outstaffing market size reached $92.5B and is expected to pick a new high in the next few years:
Despite the great appeal shown towards outsourcing, many businesses still have concerns regarding the real benefits and challenges associated even with the best solutions IT staffing offers. In this article, we’ll discuss the specifics of IT staffing, as well as how to reap the maximum benefits from this approach.
Outstaffing vs Outsourcing Difference. IT Staffing Explained
To begin with, when it comes to outsourcing , this usually means development and support of the entire project, as well as recruitment processes for all project-related positions. At the same time, outstaffing refers to a limited number of specialists to strengthen the existing team or hire individual IT specialists for the project. Outstaffing offers opportunities similar to a staff augmentation SoW model, allowing you to recruit temporary employees who can solve the tasks needed.
With outsourcing, the business is usually fully distanced from the IT recruiting process and only assesses the progress and results of the work. This means that the business obtains limited control over the project completion, and the cost of services can far exceed expectations if the project grows or demands more resources and time.
With outstaffing , the company has more control and flexibility for selecting candidates. At the same time, the costs of staffing solutions IT are often more beneficial compared to complete outsourcing options. An outstaffed IT expert becomes part of the team, but with more convenient communication and monitoring comes the need for thorough supervision and management.
When a business is hesitant between available hiring options, consulting with an IT recruitment agency or a reliable direct IT staffing services provider can help settle on the best option for the company.
Can IT Staffing Companies Be of Real Help for Business?
Many companies that need IT specialists lack an understanding of technical specifications and, thus, may fail to find a good fit for the role needed. Why do organizations consider IT staffing a perfect option to resolve both their tech and budget-specific requests? There are numerous valid reasons, including:
- Speed up the recruitment time. Finding an expert-level IT specialist with a needed skill set can take months, and you need to go through hundreds of resumes and interviews to find a perfect candidate, which can put the entire project on pause. At the same time, an engineer staffing agency usually has access to a large IT pool and can help you find the qualified specialist needed quicker.
- Increased chances to find a perfect match. Finding an expert with specific experience and technical skills can be quite a challenging task, especially if your project requires rare tech or software to be used. The chances to find such an expert is higher when skilled recruiters perform it, and a tech staffing provider has the needed qualifications and experience to help you find an ideal candidate.
- Delegating organizational chores. Working with an outstaffing company means transferring a lot of responsibilities linked to labor laws and taxes. An IT staffing provider can lift the burdens of legal and organizational questions from a business and helps the company to concentrate on the project and business development fully.
- Optimize expenses. Recruiting project-based or long-term employees and managing them can be tied up with constant expenditures that can double the expenses on paycheck and salaries. IT staffing can help to arrange all insurance costs, working space, and other services.
Of course, there can’t be all unicorns and rainbows when business and money are involved, and any business decision always involves weighing up the pros and cons of the next move. Let’s take a look at the possible pitfalls of IT staffing before diving into this route.
Typical Challenges of IT Staffing Solutions
The typical challenges of IT staffing and things to consider regarding this approach include:
- No immediate results. Although using IT staffing can significantly cut short the time on recruitment processes, it still can’t be completed in a snap. You need to take into account some adaptation time for the agency to be able to find a perfect match for the position. But this wait usually pays off well.
- Cultural and time differences. Hiring an employee in another country can save you money, but you need to be ready for some inconveniences, such as time zone differences, language barriers, or miscommunications. That’s why finding a reputable, and seasoned technical staffing company is crucial, as they will adjust to your needs and help you to minimize the inconveniences and find the best common ground with outstaffed experts for mutual benefit.
- Money involved. No quality services can be free or cheap. Hiring an agency with a good reputation and work records can still be a pricey deal. But the quality services received from such cooperation outweigh the potential challenges.
What You Will Get with IT Staffing
- It’s still quicker than dealing with the recruitment process alone. With the professional approach of an IT staffing company, the search and recruitment time can be sized down significantly.
- Lower risk of hiring a wrong candidate. IT staffing agencies constantly monitor the IT talent pool and usually have some seasoned experts on standby, ready to start to work right away. Besides, they usually have extended knowledge regarding the IT sphere and can quickly grasp the idea of what type of specialist your project needs.
- Tailored and flexible solutions. Whether you need one IT expert or a dedicated team, IT staffing has got you covered. The number of employees can also be flexible and be extended or reduced according to the project’s development.
- Transparent hiring process. You don’t need to deal with a ton of paperwork and interviews of the candidates, as the IT staffing agency can take care of it and provide you with results to base your hiring decision on.
- Clear communication. A staffing provider will take care of the convenient direct communication channels and timely correspondence, so you’ll have enough information on the hiring process and progress at each step. What’s more, the company can help you to establish easy communication with the hired specialists.
Most Common IT Staffing Models
Nearshore and offshore IT staffing services have risen in popularity in the latest years; however, many companies still remain short-sighted on the number of options and possibilities the IT staffing offers them. However, the models to adopt are quite flexible and can adjust to the diverse and specific needs of the project.
So, depending on the scale and terms of the project or business needs, there are different outstaffing models to consider. Here are some of the most widely-used IT staffing models:
It’s usually a short-time agreement where a client and a developer agree on the terms and results needed, so they operate within a predictable time and resources.
If you need a programmer or a team of developers to work on a project basis, hiring them through an IT staffing provider can lift a great number of responsibilities off your shoulders, as most of the services will be managed by the provider, and you’ll get top-notch IT experts needed.
The contract model is perfect if you need a limited amount of IT experts or just a few members to add to your project’s team for time-limited tasks. The contract due can vary from one month to 12 months and is a clear and transparent way to fulfill short-term jobs.
To sum up, it is perfect for hiring temporary workers to accomplish some time-limited tasks.
BOT is a popular model among big tech companies that outsource their development centers or move full offices abroad by establishing a partnership with an outstaffing company. BOT is the most common model used to reduce costs and risks and is adopted the most by companies that want to acquire long-term partnerships with dedicated IT resources.
HTD model is commonly used among companies providing quite specific services or operating in a small niche. In this case, the most reliable option is to train the candidates for performing specific tasks. Thus, the IT staffing company finds candidates who can fill the job position, provides training, assesses the performance, and prepares them for deployment. It is effective if the project needs a specifically skilled candidate or a team when there’s no such knowledge openly available and the company lacks resources to provide hands-on training in-house.
The Mark-up model lessens the continuous negotiations regarding salaries for each employee, as the company pays a fixed cost for a candidate with included fees, insurances, and other benefits. Thus, the salary is defined and negotiated with specialists by an outstaffing agency. It is perfect for companies with open positions and salaries with an open range.
How to Approach IT Staffing: 5 Tips To Do It Proper Way
Selecting an IT staffing provider can be a tricky task without proper research. For most companies, an outstaffing provider can be their future partner for years ahead. That is why it is vital to take your time and define what type of provider can perfectly fit your requirements and provide top-level IT consulting and staffing services.
- Define your project goals. With a clear vision and strategy for your project, it’ll be easier to define the size and scale of the tech staffing services needed.
- Come up with clear requirements for the IT expert needed. Decide on the skill set and experience level you expect from the outstaffed specialist.
- Define the current and future goals, as well as project milestones. With a clear picture of the goal you want to achieve, it will be simpler to identify the potential needs and expenses associated with hiring the needed worker.
- Be critical about your business’s current state. It is vital to take a sober look at your business and pinpoint the gaps in the organization or additional need for specialists. It will help you to avoid unexpected challenges when hiring the expert needed initially.
- Create an action plan. With the information gathered in the previous steps, you will step into the land of outstaffing fully equipped and will easily address any difficulties on your way, getting the quality IT resources needed.
IT Staffing: FAQ
Mobilunity as Your Reliable IT Staffing Services Provider
Mobilunity is a reputable IT staffing firm based in Ukraine that has been operating on the European and global outstaffing market for over 10 years. We help businesses all over the world to find the best-matching IT resources and build dedicated development teams. Some of our clients include Byg-E (Denmark), Zenchef (France), ICUC (Canada), and many more.
Our experienced Recruitment team follows and sets up the best industry practices, utilizing the latest approaches and our own time-tested methodology to source and hire perfect candidates for businesses.
If you want to get a customized solution and top-level IT consulting staffing services your business deserves, get in touch with Mobilunity experts. Let a highly skilled Mobilunity IT recruiter help you to find the best fit for your company shortly.