Outstaffing in IT: why does business need it?

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The practice of outstaffing IT personnel allows companies to flexibly manage their human resources and solve many business problems. In this article, we explain what it is, how the process is structured, and how to choose a good outstaffing service provider.

What is outstaffing?
Outstaffing (recruitment) in IT is a hiring method in which a company (the customer) rents specialists from another company (the outstaffing service provider). In this case, employees perform their duties directly in the customer company, but formally remain on the outstaffing company's staff.

It's like car sharing for employees , only the business social media marketing service rents a specialist instead of a car. He works for the customer, but another company takes care of all the formalities with employment and payments.

What is the difference between outsourcing and outstaffing
Outsourcing and outstaffing are two popular terms in modern business that are often used interchangeably. However, despite the similarities, these concepts have significant differences. Previously, we discussed the differences between outsourcing and in-house development .


Why Companies Choose Outsourcing and Outstaffing of IT Specialists
Shortage of qualified personnel. According to data , Russian companies will lack 4.8 million employees in 2024. At the same time, 83% of organizations in the IT, communications and telecom sectors are experiencing a shortage of personnel. This situation forces companies to look for alternative ways to attract talent.

High cost of hiring and retaining full-time employees. The process of finding, hiring and adapting a new employee requires significant time and financial resources. Outsourcing and outstaffing allow companies to avoid these costs.

Flexibility. The IT market is characterized by high dynamism. Outsourcing and outstaffing allow companies to quickly scale teams in accordance with changing business needs, without being tied to long-term contracts.

Focus on core business. By outsourcing some of their functions, companies can focus on their core competencies and increase their competitiveness.

Economic efficiency. Outsourcing and outstaffing allow companies to optimize personnel costs, especially during periods of economic instability.


How IT specialists outsourcing works
External hiring. The customer contacts an outstaffing company to get a team or an individual developer for the project. Specialists are selected depending on specific requirements - technology stack, work experience, availability of necessary certificates.

Administrative responsibility. Developers are formally listed on the staff of an outstaffing company, which handles all employment issues: from salary and tax payments to vacation and insurance. This reduces administrative costs and efforts for the customer.

Flexibility of terms and team composition. Outstaffing is convenient for short-term and long-term projects. If additional resources are required during the process or vice versa, you can easily adapt the team, increasing or decreasing the number of specialists depending on current needs.

Control by the customer. Although the developers are legally related to the outstaffing company, they work under the direct control of the client. The customer distributes tasks, monitors the work and is responsible for the result. This allows companies to fully manage the project and integrate specialists into their structure.

Quick adaptation. An outstaffing company selects specialists who are immediately ready to join the team and start working, which reduces the adaptation time. Usually, developers already have experience in similar projects, which allows them to quickly get involved in the process.

Transparent expenses. Usually, the fee for developer services is fixed and transparent. The customer pays only for the specialist's time of work, without hidden expenses for taxes, vacation pay or sick leave. This simplifies budget planning and allows for precise control of project costs.