What is Outstaffing
Outstaffing is the "lease" of a specific expert to work on a customer's project, which is on the staff of the contractor company. This expert is on the client's team along with all his other employees, and his work is supervised by managers or a specially authorized person.
The customer company pays the contractor money for outstaffing in accordance with the previously concluded and signed contract, and from this amount the contractor pays remuneration to the “rented” narrow-profile expert.
An illustrative example: a large-scale corporation plans to significantly expand its business, and in order to increase its staff, it needs to find new employees. According to the personnel plan, this order is several times higher than the annual one. To solve the problem, it is necessary to resort to outstaffing - the company accepts new employees working together with other specialists, but in fact they are listed as employees of the outstaffing company.
Outstaffing is a person / team that is on the staff of the outstaff company, but their time is completely bought out by the customer company. More often it is full time on one project. Less often - part-time.
Typically, a customer selects one developer or an entire team, conducts an interview, or even more than one. This also includes test assignments and even real-time encoding.
The customer's manager is responsible for the formation of the reserve and the setting of tasks. Developers communicate with him directly. All commitments, reports and actions are recorded in the client's project management system.
The contractor's function is to complement, strengthen or completely replace the client's team. Usually only one specific feature is covered. The contractor manager is responsible for general accounting and staffing.
The payment format is retainer (when the client pays a fixed amount monthly for the developer / team) or time and material (hours worked multiplied by the rate, sometimes with payment for downtime due to the client's fault).
If you have some
urgent
development needs
To outstaff, you must have your own team of developers, designers, testers, marketing managers, whom you hire on a permanent basis and who work with you on a permanent basis.
What if at some point you have some urgent development needs and the team does not have the time or resources to address them? You can hire another full-time specialist if the increased workload continues. If increasing the load is a temporary problem, you should do outstaffing.
Outstaffing is the hiring of a remote full-time or part-time professional to work temporarily on your internal team. This model allows you to hire almost any software development specialist or several of them - depending on the needs of your project. However, outstaffing requires that project management be on your side.
Outstaffing Model
Under the outstaffing model, you can have a remote team without opening a new branch of the company or a remote development office. As a client, you do not need to hire recruiters, lawyers, accountants, and facility managers - they are already part of the outstaffing and will take care of operational work. In the meantime, you can implement your internal corporate policy and culture using the existing infrastructure and outstaffing experience.