IT outstaffing is the provision of technical specialists for temporary work in the client’s office. At the same time, the specialist himself remains on the staff of a specialized external organization, which in some cases is registered directly by the client company.
Remuneration for labor and the necessary tax deductions are made by an external organization on the staff of which the employee is listed. Outstaffing as a service is often provided in conjunction with IT outsourcing.
When outstaffing is used in IT
Outstaffing of IT personnel is used when a company needs an employee for a specific project but does not have the ability to attract a specialist or such a staff unit is absent.
Also, the motive may be the excess of the limit on the number of personnel (relevant for representative offices and branches), it is planned to reduce the staff without reducing the number of personnel, a long-term replacement of one or several employees is required.
Some companies use this service to start doing business in another country without resorting to legal registration at the initial stage. And others in this way optimize the costs of personnel and accounting and other regular costs.
Benefits of IT-outstaffing for business
- Attracting high-level IT specialists. Staff members do not always have the required skill level or are not universal specialists capable of solving any IT problem. Also, the employing company often does not have the opportunity to improve their qualifications, which takes time and money or to independently search for personnel.
- Reducing the load on the HR department. Part of the scope of work is removed from it, it becomes possible to optimize and reorganize it on the scale of the organization (especially important for enterprises with a geographically distributed structure).
- Increasing the investment attractiveness of the company. The income of the enterprise in terms of one staff unit increases after the withdrawal of specialized IT specialists to a separate organization.
- Continuous availability of services. Unlike outsourcing, specialists who are involved under the terms of an outstaffing agreement are constantly at the workplace in the client’s company. This means that there are no acute problems with the maintenance of IT services, business processes do not stop at the most inopportune moment.
- Improving the efficiency of the IT infrastructure. There is an opportunity to control and plan costs, there are no overestimated costs at the stage of launching new projects and introducing innovative solutions. This increases the productivity of not only the information department but the entire enterprise.
- Reducing risks. The client is guaranteed to receive the services he needs and does not disrupt the schedule for launching new projects.
IT outstaffing as a service is provided under the terms of an agreement that describes the rights and obligations of the parties. The client receives employees who are officially registered, highly qualified, and ready to start work immediately. Tax and social payments for them are made by the main employer, he is also responsible for compliance with the norms of current legislation and is involved in quality control.
Codify is an IT outsourcing company that helps expand your technical staff through specialists, providing teams that meet your business goals and project requirements. Codify team executes your entire project according to your requirements and final specifications.
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