IT outstaffing is the provision of IT specialists for temporary work at the customer of this service. In other words, this is the rental of IT staff. At the same time, the employee himself is not registered as a staff member for the client – the specialist is listed as a full-time employee of an outstaffing agency or other external organization.
Accordingly, all tax deductions are paid by the agency or organization, while the client pays the IT outstaffing services. It can be either a fixed monthly rate or an hourly rate. An out staffing employee is constantly present at the workplace. The term “rent” can be short-term – 1-3 months, or long-term – a year or more.
Benefits of IT Outstaffing
Reducing the burden on the HR department. The agency provides a “ready” employee, with whom, if desired, you can interview or check qualifications. This is especially useful when, for example, in connection with the opening of a new project, a conditional 40 specialists are required. What a real challenge for the HR department:
- Attracting high-level IT specialists. With the help of our staffing, you can quickly and easily hire a qualified IT employee. What is easier and cheaper than independently looking for such a specialist in the market or improving the skills of already hired IT workers;
- Reducing staff costs. No need to pay pension contributions and other “labor” taxes. In addition, there are no costs for the search for specialists;
- Control over the work is in the hands of the customer. Unlike outsourcing, the client has the opportunity to fully control the work of an out-staff employee. The customer decides how to organize the team and what tasks to set for it.
Benefits of IT Outstaffing
This labor relations model is needed when a project needs extra hands. For example, an employee urgently needs to be replaced; deadlines are burning, work efficiency needs to be improved, etc. But often, IT outstaffing implies a temporary nature of cooperation.
Moreover, outstaffing is relevant not only for large companies. Of course, they are the main customers, but outstaffing is also in demand among small organizations. For example, you need an IT specialist, but hiring staff is long and expensive. The way out is IT outstaffing. Or the company aims to reduce personnel costs without compromising the result.
The Difference Between IT Outstaffing and IT Outsourcing
Both of these processes relate to the issue of hiring outside staff. With outstaffing, all processes occur on the client side. The employer orders a specialist with a certain qualification, experience, and length of service; he also decides how to organize a team and what task to assign to a specialist contractor.
When hiring an IT outsourcing specialist, the employer orders a specific service. It could be:
- setting up servers;
- IT infrastructure design;
- PC maintenance.
In both cases, the employees are part of the external organization’s staff. It is the agency that is their employer, pays them wages, and also pays all social benefits and taxes, and provides opportunities to go on vacation or sick leave. All labor disputes are also handled by an outsourcer. The customer is not faced with personnel records management.
If something goes wrong in the course of cooperation, the employee can be changed to another. That is, the workflow will not be interrupted, and there will be no costs.
