In 2023, businesses are under increasing pressure to stay competitive and innovative. One way companies are achieving this is through strategic partnerships in the form of IT outstaffing. IT outstaffing has gained popularity as a viable alternative to traditional outsourcing, offering a range of benefits and advantages.
- Disadvantages of outsourcing that gave rise to alternative business approaches
- Peculiarities of IT managed services, operate services, shared services, and outstaffing
- What makes IT outstaffing a strategic partnership type of cooperation?
- What companies will benefit from IT outstaffing the most?
- Why should you opt for European IT outstaffing companies?
- European countries ready to staff your IT department
- How does Flytika handle your queries?
Let’s explore the best practices for IT outstaffing in Europe, focusing on the unique characteristics of this approach, the strategic partnership aspect, and the type of customers that can benefit the most from this trend.
Disadvantages of outsourcing that gave rise to alternative business approaches
Outsourcing, once a popular option for businesses seeking cost-effective solutions, during decades of its popularity has demonstrated a range of disadvantages that made IT service companies search for alternative task delegation models.
- One of the primary concerns with traditional outsourcing is the lack of control and transparency over the outsourced processes.
- Companies often face challenges managing and coordinating activities across different time zones and cultural barriers.
- Lack of strategic partnership due to traditional customer-vendor relations among clients and IT vendors.
- Moreover, quality control issues and limited scalability can hinder the success of outsourcing arrangements.
These drawbacks stimulated the development of alternative approaches to delegating business processes, such as IT managed services, operate services, shared services, and outstaffing. Each model offers unique advantages, but it is outstaffing that has gained significant traction for its ability to foster strategic partnerships and address the limitations of traditional outsourcing.
Peculiarities of IT managed services, operate services, shared services, and outstaffing
IT managed services involve entrusting the management of specific IT functions, like IT infrastructure management, cloud migration, or cybersecurity, to a third-party service provider. Managed services typically involve long-term contracts, and the IT vendor assumes responsibility for ensuring the smooth operation of the designated IT functions.
Operate services are an extension of managed services, where the IT vendor not only manages but also operates the outsourced IT functions. In this model, the provider takes on a more hands-on role, actively participating in the day-to-day operation of the designated functions. Operate services often involve a higher level of collaboration between the client and the service provider.
Shared services involve consolidating certain administrative or support functions within an organization and centralizing them in a dedicated unit. This model aims to streamline operations, improve efficiency, and reduce costs by eliminating redundancies across business units. Shared services are typically implemented within large organizations with multiple subsidiaries or divisions.
Outstaffing, also known as staff augmentation, is a model where a company hires dedicated resources from a third-party provider to work as an extension of its in-house team. Unlike traditional outsourcing, the outstaffing model allows direct control and collaboration between the client and the outsourced resources. New staff become an integral part of the client’s team, working remotely or on-site, and are managed directly by the client while benefiting from the administrative support provided by the outstaffing partner.
The major benefit of all these approaches is a strategic vision of cooperation. The development of your company and your success mean the development and success of your strategic IT partners, which makes them more eager to provide you with extra services.
What makes IT outstaffing a strategic partnership type of cooperation?
IT outstaffing is more than just a transactional business relationship; it fosters a strategic partnership between the client and the outstaffing provider. Several factors contribute to making outstaffing a strategic partnership type of cooperation.
- Long-term commitment. Unlike project-based outsourcing, IT outstaffing often involves a long-term commitment between the client and the outstaffing provider. This allows for a deeper understanding of the client’s business goals, processes, and culture, enabling the provider to align their services accordingly. The long-term commitment also facilitates knowledge transfer, skill development, and the creation of a dedicated team fully integrated into the client’s business.
- Flexibility and scalability. IT outstaffing offers the flexibility to scale resources up or down based on the client’s changing needs. This scalability allows businesses to respond swiftly to market demands, project requirements, or expansion plans. The outstaffing provider can quickly provide additional resources or adjust the team composition to match the evolving needs of the client, ensuring optimal efficiency and cost-effectiveness.
- Collaborative approach. IT outstaffing promotes a collaborative approach, with the outsourced resources working directly with the client’s team. This collaboration fosters knowledge sharing, cross-functional collaboration, and the development of strong working relationships. The outstaffed resources become an integral part of the client’s team, aligning their efforts toward shared goals and objectives.
- Cost optimization. IT outstaffing offers cost optimization benefits compared to in-house hiring or traditional outsourcing. By leveraging the expertise and resources of an outstaffing provider, companies can access top talent at a lower cost without the overhead expenses associated with recruitment, onboarding, training, and retention. Additionally, the client can optimize costs by scaling resources based on project demands, avoiding the need for maintaining a permanent workforce during lean periods.
What companies will benefit from IT outstaffing the most?
IT outstaffing can benefit a wide range of companies across different industries. However, certain types of companies stand to benefit the most from this strategic partnership model. Here are four some peculiarities of a perfect outstaffing customer.
- Your company is situated in a developed country, like the USA, Israel, or Western Europe countries. In this case, you can save money on direct labor costs by hiring tech talent from countries with lower average wages.
- You already have an in-house team of IT specialists, but you want to reinforce them with one or several unique experts.
- You don’t want to lose control over your project and want to directly manage your new remote teammates.
- You want all the knowledge and technical know-how developed by your new outstaffed teammate to stay within your company.
Companies of different sizes win from collaborating with staffing IT services in different ways:
Startups and small businesses often face resource constraints and need to be agile in their operations. IT outstaffing gives them a cost-effective solution to access specialized talent, expand their capabilities, and accelerate their growth without making significant upfront investments. Outstaffing allows startups and small businesses to scale their development teams, enhance their technical expertise, and focus on their core business objectives.
Mid-sized companies can leverage IT outstaffing to augment their existing workforce and address specific skill gaps. They can tap into the global talent pool and access specialized expertise in areas such as software development, data analysis, cybersecurity, and IT infrastructure management. Outstaffing allows mid-sized companies to enhance competitiveness, quickly adapt to market changes, and execute projects efficiently.
Large enterprises can benefit from IT outstaffing by complementing their in-house teams with additional resources for specific projects or to support ongoing operations. Outstaffing offers the flexibility to scale resources based on project demands without the need for long-term commitments. Large enterprises can optimize costs, increase their operational efficiency, and gain access to a broader skill set by partnering with an outstaffing provider.
Why should you opt for European IT outstaffing companies?
With outstanding IT services markets, like India, for example, why consider European companies for IT outstaffing? Here are some compelling reasons:
Proximity and time zone compatibility.
Choosing a European IT outstaffing company offers geographical proximity and time zone compatibility for businesses operating within Europe or the Middle East. This proximity facilitates communication, collaboration, and coordination between the client and the outstaffed team. The shared time zones ensure real-time interactions, reducing delays and improving overall efficiency.
Cultural and language affinity.
European companies are well-versed in the cultural nuances and business practices of the region. This cultural affinity fosters seamless integration with the client’s team and promotes effective collaboration. Language barriers are also minimized, as European outstaffing companies often have multilingual teams, ensuring smooth communication and understanding.
Access to top European talent.
Europe boasts a rich pool of highly skilled IT professionals known for their expertise, innovation, and professionalism. By partnering with a European outstaffing company, businesses gain access to this top talent, enabling them to work with industry-leading professionals who can deliver high-quality results. European companies attract and retain exceptional talent, ensuring that clients have access to the best resources for their projects.
Compliance with European data protection laws.
European IT companies adhere to strict data protection regulations, such as the General Data Protection Regulation (GDPR). This compliance ensures that client data and intellectual property are handled with the utmost security and confidentiality. Working with a European outstaffing provider offers peace of mind, knowing that your sensitive information is protected and handled in accordance with legal requirements.
European countries ready to staff your IT department
Europe is home to multiple IT outstaffing companies that excel in providing top-quality services. Here are the largest markets with the best reputation among IT service providers:
- Poland. Being a large country with over 100,000 IT specialists, Poland became one of the largest IT hubs in Eastern Europe. Among the main competitive advantages of the country are the relatively low salary levels of IT specialists. A senior-level software developer can cost you up to 45,000 euros per year.
- Germany. One of the most innovative EU members with a greatly developed economy, Germany is home to hundreds of startups and thousands of IT experts working in the most innovative technology spheres. The main downfall of this destination is the high prices for skilled IT specialists. A developer with over five years of experience can expect to get up to 90,000 euros per year.
- Ukraine. A country with over 200,000 digital and tech specialists, Governmental support of the IT industry, and affordable prices (up to 40,000 USD a year for software developers), Ukraine is one of the best destinations for IT outsourcing and outstaffing. Even though the country struggles with Russian aggression on its territory, its IT vendors and service providers continue delivering high-quality code to its international customers.
- Portugal. A relatively small country (population is a bit over ten million people), Portugal starts developing its potential as a tech-savvy EU member. Another great advantage of Portugal is the low prices for software development. An experienced IT expert here can get up to 40,000 euros a year. On the other hand, Portugal doesn’t have an established reputation in the international market, and there are only about 140 IT service companies with 50+ employees.
How does Flytika take care of your queries?
Flytika is an international company that hires tech talent all around the globe, including Israel and Europe, prioritizes customer satisfaction, and takes care of your business goals and objectives throughout your partnership. Here are the key aspects of Flytika’s approach:
- Professional staffing and post-hiring support. Our team of recruiters has vast experience in hiring tech specialists. We apply recruitment software but always use a human touch to ensure that our choice of your future employee is perfect. After you hire a new team member, we take care of their onboarding and administrative support, helping you with managing and payroll issues.
- No hidden costs and transparent prices. Our customers have access to the developers’ salaries, our service fees, taxes, and all other expenditures. You can rest assured that no hidden costs will be charged to you.
- Dedicated relationship manager. Flytika assigns a dedicated relationship manager to each client, ensuring a single point of contact for all queries and concerns. The relationship manager acts as a bridge between the client and the outstaffed resources, facilitating smooth communication, coordination, and issue resolution.
- Fast communication channels. We maintain transparent and efficient communication channels, utilizing project management tools, video conferencing, and instant messaging platforms. These channels enable real-time communication between the client and the outstaffed team, fostering collaboration and ensuring that queries are addressed promptly.
- Performance monitoring and reporting. Flytika employs performance monitoring tools and conducts regular performance assessments to ensure the quality and productivity of the outstaffed resources. Detailed performance reports are shared with the client, highlighting achievements, areas of improvement, and any concerns that need to be addressed.
- Continuous support and skill development. Flytika provides ongoing support and guidance to the outstaffed resources, ensuring their professional growth and skill development. This ensures the client receives highly competent and up-to-date professionals well-equipped to meet their project requirements.
- Flexibility and adaptability. At Flytika, we understand that business needs may evolve over time. That’s why we offer the flexibility to adjust the team composition, scale resources, or reallocate resources based on changing project requirements. This adaptability ensures that the client’s needs are met effectively throughout the partnership.
IT outstaffing has emerged as a strategic partnership model that addresses the limitations of traditional outsourcing while offering flexibility, scalability, and cost optimization.
By partnering with an outstaffing provider like Flytika, you can access top talent, enhance your capabilities, and achieve your business objectives more efficiently. We take care of your queries through transparent communication, dedicated support, and a collaborative approach and ensure a successful and productive outstaffing partnership.
Opting for European IT outstaffing companies brings several advantages, including proximity, cultural affinity, access to top talent, and compliance with data protection laws. By partnering with reputable outstaffing companies that operate in Europe, you can benefit from the region’s expertise, innovation, and professionalism, leading to successful outcomes and enhanced competitiveness.