How Outstaffing saves you over $30k every year: an illustrative example

Outstaffing is a non-obvious option to improve your project. It’s like you try to find something so hard, you don’t notice it in front of you.

First things first: outstaffing is not the same as outsourcing. The outsourcing model is about transferring tasks and processes to another company. And outstaffing is a type of remote hiring model that provides a dedicated team of specialists by a third-party contractor as a resource to your project.

The team or a specialist works dedicatedly on the project of the client for the period of a contract. The process looks just like you’re working with your in-house remote team members. They immerse in your business and project and apply their expertise to meet your goals in defined deadlines.

Let’s discover why you should try outstaffing over an in-house team.

What does your business win with outstaffing?

1. It saves you time and money on recruiting

You know how it happens when you’re launching a startup: to realize the big idea, you need qualified staff to make it competently and quickly. So you spend lots of time searching for talented specialists who share your values and vision. It is always difficult to find both.

But when you managed to gather a team and have already launched the project, how to load all the specialists with work? It is more likely you will shorten your staff because the workload decreased. You’ve spent time and money to find the team to reduce it later.

Now rewind to the beginning. Choose another option — outstaffing. You only have to describe your business needs to the company that specializes in the areas you need to cover. Often, specialists are ready to start the next day. So you can launch your project within one to three weeks tops.

As a result, you saved the time and resources required for hiring and got specialists with desired stack and experience in short term. It is a win-win situation.

2. A team all over the globe

Another benefit is location. You don’t have to look for specialists only in your city or country, so you are broadening your «search». You can attract engineers from all over the world, which can bring a fresh point of view to your project as well as expertise. And communication shouldn’t be too hard, since it is common for engineers to know English.

Also, take into account that fees differ in various countries, while the quality stays the same. So that is a possibility to create a good product even if your budget is lower than average.

3. Expertise

If you have concerns that outstaffing fits you — that’s not true. It is a universal method that suits lots of cases. For IT companies, it is an opportunity to create more projects. You will strengthen your team with experienced specialists, so the customers will get quality products.

And it can be even handier for non-technical and small organizations. For those who own an offline shop, it is a chance to create a great and efficient site instead of doing it yourself with constructors. A dedicated team or a specialist will define the scope of work and will help you to stand out among the competitors. They will help with all the issues like hosting, reliability, and other things you should not worry about.

4. Reducing costs on staff

Of course, there are some disadvantages, such as:

• communication management problems or issues considering time zones,
• difficulties if we are talking about different cultural mindsets,
• challenges with team motivation.

But you can minimize them with competent management while still reducing your business costs. For example, one working hour of an outstaffed specialist costs $50. It seems expensive, but you pay only for work done. For comparison, add to the in-house specialist salary costs for hiring, vacation, sick leaves, laptop, other equipment and software costs, gifts and corporate parties, or even rent fees. After all these calculations, it can occur that it exceeds the costs of outstaffing.

Check the table below for clarity. We’ve compared the expenses for an in-house DevOps Engineer and an experienced specialist you’re outstaffing.

There are approximate lowest and highest additional prices for 1 hour per 1 employee in each row. It counts as: price per expense for the month / (average working hours per month – time of absence, which is a sum of vacation and sick leaves).

Note that this calculation assumes that an in-house specialist has successfully completed the probation period. In another case, you need at least 3 months for replacement, while outstaffing lets you do it in one week.

Rates of outstaffed personnel vary depending on the project and its duration. The model of work also affects the rates, since outsourcing and outstaffing differ. So if you want to discover the specific amount for your business tasks, it is better to contact us.

Conclusion

Outstaffing is a great option to reduce costs without sacrificing quality. That helps you to save the time and money you need for hiring and cut down your billing because it is more profitable than an in-house team. It also allows you to attract expertise to your project from all over the world.

Talking more specifically, outstaffing saves you up to $12.5 hourly, $2250 monthly, or $30k per year for every specialist. So $50 per hour which you pay for outstaffing is an even more reasonable decision.

Also, outstaffing suits businesses of different sizes and areas of work. Even though this model has its disadvantages, you can deal with them via competent management.

So in conclusion, it is an option to make better products. If you wish you could rewind time to try outstaffing earlier, it’s OK. You can still get its benefits for your business — just feel free to contact us.