The global market for outsourcing services amounted to 92.5 billion U.S. dollars even before the pandemic. Recent years have only solidified the growing trend of outstaffing. Now, many Fortune 500 companies are comparing the IT outstaffing model with the IT recruitment model to select the one that suits their needs best.
Read on if you want to learn more about the advantages of project-based hiring compared to the traditional model. We will touch upon why remote hiring became a must for well-established entrepreneurs and fastest-growing startups.
What is a Recruitment Agency?
A recruitment agency specializes in finding the perfect candidates to fill open positions. It helps potential employees connect with their future employers. Such businesses conduct thorough research and carefully select suitable candidates. When performing initial screening, they assess the qualification of candidates to find people who can contribute to the development of a company. Such services are in high demand among world-known companies and small businesses alike as they allow access to a pool of talents and find the best candidates quickly.
Main Functions of an IT Recruiting Agency
Let’s compare recruiting agency vs outstaff company. The former specializes in headhunting, screening, conducting interviews, and arranging contract agreements.
Headhunting
The main requirement is to find prospective candidates with relevant skills and experience. A dedicated software development team can be either local or remote.
Interviewing
By talking to the selected applicants, recruiting agencies verify their skills and check whether they are suitable for the job. This stage may include additional assessments.
Screening
A recruitment agency shortlists the top candidates after conducting background checks.
Negotiating Contracts
An agency clarifies the contract details with both sides to ensure their expectations are aligned.
Pros And Cons of Hiring with a Recruitment Agency
After comparing IT outstaffing company vs IT recruitment agency, you will see that the latter can help you fill multiple positions quickly.
Pros
Speedy hiring. Due to their extensive outreach, recruiting agencies find suitable candidates within several weeks.
Full control over the process. Recruitment agencies keep their clients updated on the progress and help them build a close-knit team.
Value for the money. Clients can decide how much they are going to pay.
Cons
The hiring process might take a few weeks to recruit a new staff member.
Some recruiting agencies fail to guarantee they will find a suitable candidate or a replacement.
What is an Outstaff Company?
According to a popular definition, an outstaffing company specializes in finding necessary talents to cover a business function outside your core team. It’s fully responsible for the employment process. For instance, Integrio Systems facilitates hiring and provides team extension services to help its clients scale up the software and app development process.
Main Functions of an IT Outstaffing Company
Let’s look at the difference between outstaff and recruitment agency. The former significantly speeds up the hiring process by carefully selecting candidates.
Candidate Sourcing
This stage involves looking for suitable candidates regardless of their location. An outstaffing company picks the best candidates for a team based on project requirements.
HR Recruitment and Management
Besides finding candidates, such companies manage wages and take care of taxes. Thus, their clients can save a lot of time by outsourcing these tasks.
Providing Office Facilities
If a client needs to hire a remote team to work at an office abroad, an outstaffing company will find a suitable facility within the specified budget.
Pros And Cons of Hiring with an Outstaffing Company
We keep comparing an outstaffing vs recruitment agency. The former has numerous advantages that will help you streamline your workflow. However, you should be also aware of some minor shortcomings of this hiring method used.
Pros
Direct contact with the team. Outstaffing will help you to improve your communication with your team members.
Effective collaboration. Outstaff companies make it easier to keep in touch with the developers from your team and solve a range of tasks.
Allows for saving money. You can outsource various HR tasks and entrust managing your finances to an outstaffing company.
Advanced control. If you take a look at the outstaffing vs recruitment comparison, you will see that the latter model allows you to keep track of the progress and make the necessary adjustments based on feedback.
Cons
Requires a responsible approach. You need to control your team members to ensure that they will solve all the assigned tasks in time.
Delayed communication. As your staffers might work in different time zones, it may hinder communication.
Incentivization issues. Finding a way to motivate a remote team might be challenging.
No corporate events. Remote professionals might need help creating a friendly atmosphere within the team without seeing each other.
What Market to Choose for Outstaff?
When selecting a market with a booming outsourcing industry, pay attention to legal issues that might arise in case you decide to terminate employment or scale up your operations.
Poland. This country is a major hub for outstaffing companies. It got a whopping 70.56 points in the US Chamber of Commerce IP Index released in 2020, which means that it’s the safest option among the countries with major outstaffing industries. Learn how to hire software developers in Poland.
Canada. Outsourcing in this country is regulated by federal laws, which ensures that your cooperation with your remote employees will be safe and secure. It’s a perfect choice for those looking for nearshore outstaffing options.
Ukraine. This is a fast-growing and incredibly resilient market with thousands of experienced professionals. Companies based in this country provide top-level team extension services which have great value for the money.
The USA. If you want to reduce your expenses and avoid hiring high recruitment costs, IT outstaffing companies in the U.S. is what you need. They allow you to find the best professionals on the market and quickly hire them as contractors.
What Method Is Better for Your Company?
After taking a closer look at the outstaff and recruiting company comparison, you will see that there are some noticeable differences between the hiring methods they use and the responsibilities of their clients. When selecting a suitable partner for scaling up your business, think about whether you are ready to work together with an IT outstaffing company to find the right candidates.
Some other factors that would greatly influence your decision would be:
The project’s complexity
The project’s long-term goals
The budget available
If you compare outstaffing vs recruitment method, you will see that the former is more cost-effective and allows you to spend less time on the hiring process. It offers better flexibility when it comes to the duration of a project.
Expert Advice
The outstaffing model is suitable for growing companies that don’t want to pay high recruitment fees and risk their financial stability due to the contract terms. We highly recommend outstaffing to companies interested in team extension. When comparing an IT outstaffing vs IT recruitment agency, make sure to do the following to make the right choice:
Consider your budget. If you are on a tight budget, working with an outstaffing company is a smart choice.
Take into account possible risks. If you aren’t sure your project will take off, avoid signing long-term contracts.
Think about the importance of team building. For long-term projects, hire an in-house team to avoid risks with meeting deadlines.
Consider Integrio As Your Trusted Partner
As a top-level company specializing in outstaffing, Integrio creates machine learning solutions and offers custom software development services. Our dedicated development team has extensive experience in web development, legacy systems modernization, software product development, and other industries. With its teams based across Canada, Poland, and Ukraine, it worked on successful projects for large companies and startups.
Due to its close cooperation with Jonas, Integrio contributed to various development projects and engineered solutions for NovaPay, Member Manager, MiGym, among many others.
Another of its ongoing projects involves the creation of data management solutions for the health insurance provider CareOregon in the U.S. To learn more about SaaS solutions, AI-based products, and other projects, look closely at their professional portfolio.
Whether you need to create an ERP solution or get convenient tools for managing large amounts of data, contact the Integrio team and get professional assistance with scaling up your operations!
Final thoughts
If you don’t know which hiring model, outstaffing or recruitment, suits your needs more, consider your budget, the duration of your project, and possible risks to select the best option. By entrusting the task of hiring a new team to a well-established outstaffing company, you can save valuable time and resources.
FAQ
As we have mentioned above, it starts with screening. Then, an outstaffing company selects the best-suited candidates, conducts interviews and performs background checks.
This hiring method is preferred by large companies as it allows them to entrust control over the hiring process to a recruitment agency, thus saving time on finding perfect candidates, discussing contract details, and paying wages.
Yes, such companies as Integrio Systems use streamlined cooperation models. You may learn more about their pricing policies before sending them the details of your project.
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