09/23/24

8 reasons why you should use IT outstaffing services

8 Reasons to Use IT outstaffing services

Technological changes always make us uncomfortable, yet they instantly improve our lives, make business easier, and give us a competitive advantage over those afraid to seize opportunities. 

Out staffing services is the case when the technological revolution (internet and global connectivity) has evolutionized the way we delegate business processes. You don’t have to give the whole process to an unknown company; you also don’t need to be limited by your local talent. You can have the best of the two worlds by hiring the best specialists whenever you want to work on your project, wherever it is. 

Content: 

  • Global talent at your service
  • Save 60% and more on direct labor costs
  • Reduced risks of overhiring
  • Unique expertise at your fingertips
  • Scalability of your team
  • The fastest wins the race
  • Less burden for your administrative staff
  • Cultural fit, regardless of residence

But what exactly is IT outstaffing, and why should you consider it for your business? Here are eight compelling reasons you will benefit from cooperation with a reliable IT outstaffing service company.

Why Use IT outstaffing

1. Global talent at your service

When considering IT outstaffing, one of the standout benefits is access to global talent. Imagine you’re running a project in Tel Aviv. The local talent pool, while strong, is limited, and top developers are often already snapped up by the big names in the industry. For a smaller or less-known company, it can be tough to compete for the best local talent.

But with IT outstaffing service, you’re no longer confined to hiring developers just from Tel Aviv. You have the entire world at your fingertips. This means more options, more specialized skill sets, and a greater chance of finding that perfect fit for your team. Whether it’s a developer from Eastern Europe with cutting-edge knowledge in AI or a UX designer from Southeast Asia with a unique creative flair, the global market is full of possibilities.

By tapping into this global talent pool, you’re not only overcoming local hiring challenges but also ensuring that you don’t have to settle for less. The broader your options, the better your chances of securing the exact expertise you need—without compromising on quality or fit. 

2. Save 60% and more on direct labor costs

Cost efficiency remains a driving factor for businesses opting for IT outstaffing services. According to Deloitte, cost savings have been a key reason for companies choosing outsourcing and outstaffing for five consecutive years. But how exactly does this save money?

Similar to traditional outsourcing in manufacturing or call centers, IT outstaffing service companies allow you to hire skilled professionals from countries where the average salary level is lower than in your own. For example, if you’re based in Western Europe or North America, hiring developers from regions like Eastern Europe or Asia can significantly reduce your labor costs without sacrificing quality.

But the savings go beyond just direct labor costs. By opting for IT outstaffing services in Ukraine or other cost-effective regions, you’re also cutting down on expenses related to office rent, supplies, and in-house administration. There’s no need to invest in additional office space or manage the overhead associated with a larger on-site team. The streamlined nature of IT outstaffing services means you can focus on core business activities while benefiting from the same level of expertise and productivity at a fraction of the cost.

In essence, IT outstaffing doesn’t just offer a cheaper alternative—it provides a more efficient, resourceful way to scale your business without the financial burden typically associated with expansion.

how much IT outstaffing costs

To sum up, with IT outstaffing service in Ukraine, you save:

  • 82.1% of overall annual expenses on a tech team of six people compared to a New-York-based company
  • 78,4% compared to London, and
  • 68,8% compared to Tel Aviv.

3. Reduced risks of overhiring

Overhiring has been a costly lesson for many companies, particularly during the massive layoffs of 2022-2023. The rapid expansion during the pandemic led to a surge in hiring, followed by a harsh reality check when the economic environment shifted. Companies found themselves paying substantial severance packages to employees they no longer needed, creating a financial strain and a cautionary tale for future hiring practices.

For small businesses and startups, the risk of overhiring is even more significant. These companies often operate with limited resources and face uncertainty in their growth trajectories. Bringing on full-time, in-house employees can be a daunting commitment when you’re still figuring out your exact team needs.

This is where IT outstaffing services company offers a strategic advantage. By delegating hiring to employers of record (most staff augmentation companies fulfill this function), your business can scale your team on current project demands without the long-term commitment of traditional hiring. This flexibility allows you to avoid the pitfalls of overhiring, ensuring you have the right talent at the right time without the financial burden of maintaining a bloated workforce.

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4. Unique expertise at your fingertips

One of the standout benefits of IT outstaffing is the ability to tap into unique expertise that might otherwise be difficult to find. Imagine you need a product designer with a strong background in statistics or a business analyst who also understands UX—these are specialized skills that aren’t easy to come by. Traditional hiring methods could have you searching for months, only to find someone who might just be a close fit rather than the perfect match.

Now consider a developer with experience in medical software or an R&D specialist focused on emerging markets—these roles require niche expertise that could take even longer to fill. With IT outstaffing, you can access these specialists much faster. Staff augmentation companies act as recruitment agencies that not only find you the perfect match but also take care of much more, including the administrative and HR responsibilities that come with hiring.

Moreover, by outsourcing your IT needs, you allow your in-house team to concentrate on what they do best. This division of labor means your company can stay focused on its core business activities while the outstaffed team handles the technical challenges. The result? Enhanced productivity and efficiency across the board, making it a true win-win for your business.

5. Scalability of your team

Whether you need to expand your team for a specific project or reduce it after completion, outstaffing allows you to adjust your workforce size easily.

One of the standout features of staff augmentation vendors like MWDN is their variety of services. From time-and-material models, where you pay for the actual hours worked, to part-time hires or long-term dedicated teams, these services ensure that your staffing needs are met precisely. This versatility enables you to scale your team without the lengthy hiring or firing processes typically associated with in-house staff.

The speed at which you can bring in or let go of team members is a significant advantage. Need an extra developer for a few months? No problem. Finished a project and no longer require as many hands on deck? You can swiftly downsize without the complications of layoffs. This scalability not only saves time and resources but also allows your business to remain agile and responsive to market demands.

6. The fastest wins the race

Studies consistently show that the company that releases its MVP first often secures a significant advantage. IT outstaffing can be a secret ally in accelerating development and expediting your market release, giving you that edge. How exactly?

  • Staff augmentation allows you to quickly access a pool of skilled professionals who are ready to dive into your project. Whether you need developers, designers, or project managers, outstaffing provides immediate access to top talent without the delays associated with traditional hiring processes. This means you can rapidly assemble a team tailored to your project’s needs, speeding up development times.
  • With an outstaffed team, you benefit from the flexibility to scale resources based on project requirements. This adaptability ensures that you can respond to development challenges swiftly, maintaining momentum and meeting deadlines with ease.
  • The expertise provided by outstaffed professionals often brings specialized skills that might be lacking in your in-house team. This high level of proficiency can streamline complex tasks, reduce errors, and minimize rework, all of which contribute to a faster development cycle.

Put simply, by integrating outstaffing into your strategy, you position your business to accelerate its time to market, capitalize on emerging opportunities, and achieve a competitive edge in your industry.

7. Less burden for your administrative staff

Managing a growing team involves more than just overseeing day-to-day operations; it requires substantial administrative support. This often means your internal staff spends considerable time handling recruitment, compliance, and employee management—tasks that can divert focus from core business activities. IT outstaffing provides a solution to alleviate this burden, allowing your administrative team to focus on what truly matters.

what does IT outstaffing include?

With IT outstaffing, many of the administrative responsibilities typically handled in-house are efficiently managed by your outstaffing provider. For example, MWDN takes on a range of administrative functions that streamline operations and reduce your internal workload:

  • Personalized recruitment. We handle the entire recruitment process, including vetting candidates, conducting technical interviews (if required), and ensuring the best fit for your project.
  • Steady availability. Our commitment to maintaining operational efficiency extends to ensuring that our employees are always accessible. For instance, despite challenges such as power shortages in Ukraine due to the ongoing war, we equip our team with essential technology like Starlink and power-supply generators to keep them connected.
  • Ongoing administrative support. From managing working hours and holidays to handling all aspects of employee administration, we take care of it all.
  • Hardware and software provisioning. We supply the necessary tools and technologies required for your team members to perform effectively, tailored to your specific needs.
  • Time tracking. We manage and monitor timekeeping, ensuring accurate tracking of work hours and leave.
  • Compliance and taxation. Navigating taxes and labor laws for international hires can be complex. MWDN handles all compliance issues, ensuring that your team adheres to local regulations without additional hassle for you.
  • HR and motivational support. Beyond administrative tasks, we also provide HR support and handle employee motivation activities, including organizing holiday presents, and other perks.

8. Cultural fit, regardless of residence

Finding the right cultural fit is as crucial as technical expertise. This is especially true when working with remote teams spread across different continents. We offer global hires across the world. One of our favorite destinations is Ukraine that has emerged as a prominent destination for IT outstaffing not just for its technical proficiency but also for its strong cultural alignment with Western businesses.

One of the key benefits of choosing outstaffing services from Ukraine is the exceptional cultural compatibility it offers. Ukrainian IT professionals are known for their high English proficiency, which significantly reduces language barriers and enhances communication.

Additionally, the time zone overlap between Ukraine and major Western markets, such as Israel and Europe, further contributes to efficient communication. This overlap allows for real-time interactions and prompt responses, making it easier to coordinate tasks, resolve issues, and keep the project moving forward without delays.

Ukrainian professionals are well-versed in Western business practices and cultural nuances, which facilitates smoother integration into your existing team dynamics. This cultural understanding ensures that your outstaffed team members not only have the technical skills you need but also fit well within your company’s operational and cultural framework.

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