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5 Benefits of Outstaffing for Tech Companies

 The shift to remote and hybrid setups has challenged traditional notions of productivity. With increased digitization, businesses are more open to the concept of team augmentation.

According to a survey conducted by Gartner in 2022, 82% of organizations plan to adopt a hybrid work model. This signifies the growing acceptance of the benefits of flexible work arrangements. 

Furthermore, a report by McKinsey revealed 87% of executives believe blended workforce is the new norm. This highlights team augmentation's importance in creating agile and adaptable workforces. But what is Outstaffing? How does it work? What are its benefits? These and more will be discussed in this article. 

Outstaffing 101: A quick review 

Outstaffing is commonly known in the IT industry as team augmentation. This involves hiring remote tech talents as part of an organization's in-house staff. In this partnership, a vendor screens, trains, and manages these tech talents. Meanwhile, the client manages the day-to-day productivity of these tech talents. 

In IT outstaffing, the client and vendor form a partnership. Any team augmentation needs of the clients are given by the vendor. Some of the functions it assumes are recruitment, onboarding, payroll, and statutory compliance. The best thing with IT staff augmentation is that companies can hire talented tech resources at a more cost-effective price from anywhere in the globe. 

5 Benefits of Outstaffing Tech Talent

In this section, an in-depth explanation of team augmentation, including its mechanisms, benefits, and processes is provided.

Team augmentation is on the rise because of its promise as a cost-effective solution. Businesses consider this model as a tool to scale in the fastest way possible. But there is more to outstaffing than the usual cost-effectiveness narrative.

High-quality Senior Tech Talent

IT staff augmentation companies often have a wide talent pool. Within a week, tech companies can tap their desired talent effortlessly and seamlessly. All you have to do is provide the specific needs of your project including budget, manpower needs, and timeline. They will come up with a reasonable action plan based on what you identified.

The best thing with these companies: sky's the limit in tapping tech talents. You only need to find the right outstaffing partner that can help you get started and hire experts.

Scalability and Flexibility

Team augmentation particularly benefits Small to Medium Enterprises (SMEs). Given their limitations, they find it hard to compete for tech talents.

Through team augmentation, SMEs can fill critical positions required to complete more projects. This helps boost their portfolio enabling them to secure more lucrative deals. Free from their tech constraints, they can enhance their competitiveness in the market.

To leverage this flexibility, it is essential to collaborate with a reputable IT staff augmentation company. These partners can provide invaluable assistance through talent mapping and needs analysis. This is crucial in making strategic decisions in deals and projects.

The insights these third-party partners offer help develop business plans and manage projects. This ensures business goals are met using reasonable resources.

However, the true advantage lies in the ability to adapt and adjust the workforce based on specific staffing needs. Companies can promptly and efficiently downsize or upsize their workforce. With changing market dynamics, flexibility is a complete luxury. Businesses that can manage their resources based on market conditions win.

Increased Efficiency and Focus

Companies looking to outstaff aim to expedite their time-to-market. With the competition becoming fiercer by the day, they wish to establish their presence swiftly. By leveraging these skilled tech resources, tech companies can concentrate on their tasks.

Augmented teams provide valuable reinforcement through their expertise and skills. As such, vendors must ensure smooth training, onboarding, and integration to business processes. This avoids potential delays, allowing CTOs to focus on important matters rather than micromanagement.

Management of risks

The main advantage of team augmentation over outsourcing is control. Outstaffing allows complete oversight of experts, senior developers and other tech resources. They follow your rules, standards and tools for the project. Even evaluation processes are set using the parameters of the client management team.

Cost-effective solutions

Team augmentation reduces the costs of recruitment, HR processes, and overhead expenditure. The vendor shoulder all expenses related to onboarding. Even the equipment, software, and tools required for the job are provided by the vendor.

With the increasing demand for tech talents, SMEs are unable to compete with prices of talent. Even young entrepreneurs find it difficult to tap skilled workers who can get the job done. Team augmentation is the best alternative for them to do so. Through outstaffing they can negotiate their needs based on their means and capacity.

Moving ahead: starting your outstaffing journey

The decision to outstaff depends on the specific goals and needs of tech companies. If the project requires a specific skill set, outstaffing is the best option.

Many tech companies have found success under this arrangement in the Philippines. The country has a huge pool of senior tech talent who can work on the terms and specifications of their clients.

With their competency in English, communication never becomes an issue. Not to mention, working in the US time zone. They are quick to adjust and adapt both on working hours and work ethics.

Partner companies like Dev Partners present a huge opportunity for US companies. With fully-vetted young, talented Filipinos, it is a leading tech resources provider.

It also has excellent rates which suit your various needs and demands. To start and understand more, contact us now and claim your free trial.

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