The pandemic has demonstrated that IT specialists can stay productive and efficient even remotely. Even though tech giants are trying to get their employees back to the offices, software developers no longer feel like it. Remote work is here to stay, which means outstaffing IT companies and their clients should enjoy its multiple benefits and minimize its downfalls. Want to know how Flytika maximizes the advantages of remote work? Keep on reading to find it out.
- Why is remote work considered the new normal of 2023?
- Why is outstaffing more sustainable and strategic than outsourcing?
- How much money can you save by outstaffing IT talent in Europe?
- Flytika’s approach to managing remote IT talent
Why is remote work considered the new normal of 2023?
Remote work has become the new normal for several reasons, driven by technological advancements, changing work cultures, and evolving employee expectations. The proliferation of high-speed internet, cloud computing, project management tools, and collaboration platforms has made remote work more feasible. These technological advancements enable seamless communication, real-time collaboration, and secure access to work-related resources from anywhere in the world.
In recent years, namely after the pandemic restrictions, businesses across various industries, especially IT, have embraced remote work as a viable and beneficial option. Just check out some of its numerous benefits to employers and employees.
Evolving work cultures
Traditional notions of work have shifted, with European-based companies recognizing the importance of work-life balance and employee well-being. Remote work offers employees the flexibility to manage their professional and personal lives more effectively, resulting in increased job satisfaction, reduced stress levels, and improved overall well-being.
European IT companies that offer remote work options can attract and retain top talent by accommodating individual preferences and needs. Remote work reduces commuting time and allows employees to work in environments that suit their preferences, leading to higher job satisfaction, which contributes to higher retention rates and reduced recruitment costs for the company.
Access to a global talent pool
Remote work eliminates geographical boundaries, enabling organizations to tap into a global talent pool. Companies can now hire and work with highly skilled professionals from different locations without the constraints of physical proximity. This expands the talent pool and provides access to diverse skill sets and perspectives, fostering innovation and driving business growth.
Employees, on the other hand, get a chance to start working with companies from other cities. A person from a small town is not limited anymore by local enterprises and can try themselves within large international enterprises without the necessity to relocate to business capitals.
Remote work has been shown to enhance productivity levels for many IT professionals. Without the distractions and time-consuming aspects of commuting, employees can focus more on their work tasks, resulting in improved efficiency and output. Additionally, the ability to work in personalized environments and during peak productivity hours enhances individual performance and reduces burnout.
However, remote work doesn’t affect everybody in the same way. Some IT specialists might need additional control or might find out that small talk near the water cooler is more productive than a two-hour-long online meeting. A lack of community and increasing feelings of isolation are the reasons why companies like Google and Meta try to get their employees back to the offices, at least for several days a week.
Remote work can lead to significant cost savings for employers and employees. Reduced office-related expenses translate into cost savings, which can be allocated to other strategic initiatives or investments. Furthermore, remote work eliminates or reduces travel expenses for remote team members, resulting in additional cost savings for employees and the company. This cost-effectiveness benefits both parties and can contribute to higher job satisfaction.
Increased agility and scalability
Remote work provides companies with increased agility and scalability, as outstaffing remote teams can be easily scaled up or down as project requirements fluctuate, allowing businesses to adapt quickly to changing market dynamics. This flexibility enables companies to be more responsive to client demands and take advantage of emerging opportunities without being limited by physical office constraints or location-specific talent pools.
Geographical expansion and market reach
Remote work enables companies to expand their operations and market reach beyond their local regions. By embracing remote teams, companies can establish a presence in different countries and cater to a broader client base. This geographical expansion enhances market opportunities, diversifies revenue streams, and strengthens the company’s overall competitiveness.
Remote work contributes to a more sustainable future by reducing carbon emissions associated with commuting and office-related activities. With fewer employees commuting daily, there is a significant reduction in traffic congestion and air pollution. By embracing remote work, European IT companies can align with global sustainability goals and reduce their carbon footprint.
Why is outstaffing more sustainable and strategic than outsourcing?
Businesses often seek innovative ways to augment their teams and access specialized talent. Two popular approaches that have gained prominence in the IT industry are outstaffing and outsourcing. While both strategies involve engaging external professionals, they possess distinct peculiarities. Let’s shed some light on the unique characteristics and benefits of IT outstaffing and outsourcing. Here are five reasons which make us believe that outstaffing is the best approach to delegating your business operations to third parties:
1. Engagement model
The engagement model is one of the primary differentiating factors between IT outstaffing and IT outsourcing. IT outsourcing typically involves delegating an entire project or specific tasks to an external service provider. In this scenario, the external provider assumes responsibility for the project’s execution, including the management of resources, timelines, and deliverables. The client maintains a more hands-off approach, focusing on overseeing the project’s progress and outcomes.
On the other hand, IT outstaffing revolves around the augmentation of existing in-house teams with remote professionals. Rather than outsourcing the entire project, businesses hire external talent to work collaboratively with their internal teams. Outstaffing allows for greater control and involvement from the client organization, as they directly manage and coordinate the remote professionals, integrating them seamlessly into their existing workflows and processes.
With IT outstaffing, you have more control over the team, their tasks, and the overall project. You can easily manage and direct the resources according to your specific requirements, making it highly flexible.
2. Flexibility and agility
Flexibility and scalability are crucial considerations for IT resource management. IT outsourcing provides clients with the ability to scale up or down quickly, as external service providers possess the necessary infrastructure and expertise to handle fluctuating project requirements. Outsourcing offers businesses the advantage of accessing a wide range of skills and resources on demand, allowing them to adapt to changing market dynamics efficiently.
In contrast, IT outstaffing offers an even higher degree of flexibility and agility. By engaging remote professionals as part of their in-house team, clients can easily adjust their workforce to match project needs. Outstaffing provides the advantage of long-term engagement with IT professionals, fostering continuity, knowledge retention, and deep integration within the client organization’s culture and processes.
Another benefit of IT outstaffing is that it enables a quicker start to your project. You can onboard resources faster compared to outsourcing, where you might face delays due to negotiations, contract finalization, and knowledge transfer.
3. Communication and collaboration
In IT outsourcing, communication primarily revolves around project requirements, progress updates, and deliverables. The client and the IT vendor establish communication channels and protocols to ensure a smooth flow of information.
IT outstaffing places greater emphasis on continuous communication and collaboration. Remote professionals become an integral part of the client’s team, participating in daily stand-ups, team meetings, and project discussions. This closer collaboration facilitates better alignment, transparency, and synergy between the in-house team and the remote professionals, resulting in enhanced productivity and cohesive teamwork.
4. Cost considerations
IT outsourcing often involves fixed pricing models, where the IT vendor offers a comprehensive package for the entire project. This pricing structure provides cost predictability and simplifies financial planning for the client. However, it may limit flexibility in terms of resource allocation and utilization.
IT outstaffing offers more flexible pricing models. Clients typically pay for the services of remote professionals on a monthly or hourly basis, allowing them to scale their resources according to project requirements. This cost structure enables businesses to optimize their budget, allocate resources strategically, and control expenses more effectively. With IT outstaffing, you can also avoid additional costs associated with managing and maintaining a third-party provider’s infrastructure.
5. Dedicated team benefits
When you opt for outstaffing, you can build a dedicated team of professionals who work exclusively on your projects. This helps foster long-term relationships, enhances collaboration, and ensures better knowledge retention. By having your own team, you retain complete control over your intellectual property. There are no concerns about sharing sensitive information with a third-party provider.
Moreover, IT outstaffing allows you to hire professionals who understand your company culture, goals, and values. They can better integrate with your in-house teams, leading to improved collaboration and synergy.
How much money can you save by outstaffing IT talent in Europe?
One significant factor to consider when outstaffing IT talent is the variation in salaries and taxes across European countries. Salaries of software developers can differ significantly based on the cost of living, market demand, and skill scarcity.
We used open sources and salaries surveys to compare the salaries and taxes of software developers in European countries, so you can have more data to consider while choosing your IT vendor.
Consider that the average salary of a Junior Software Developer in the USA is 80,000 to 100,000 Euro per year. At the same time, a Middle to Senior Software Developer can expect to get 160,000 to 200,000 Euro per year.
The salaries of IT specialists in Europe are much lower, which makes European IT outstaffing companies highly attractive to US-based clients. Below you will find the average basic salaries of software developers in European countries. These are yearly remunerations in Euro and before taxation.
|Junior software developer
|Middle to senior developer
The taxation rate in a country can also affect your choice of an IT vendor. In some countries of Central and Western Europe, you will find a progressive income tax that can reach 45 to 50%. In Eastern Europe, for example, in Poland and the Czech Republic, income tax rates can range from 15% to 30%. In Ukraine, for example, due to the special taxation rates for IT specialists provided by the government, the taxes can be as low as 5 to 10%.
Here are some specific examples of taxation rates in European countries:
- United Kingdom. The income tax rates in the UK for the tax year 2021/2022 are as follows:
- Basic Rate (up to £50,270): 20%
- Higher Rate (£50,271 to £150,000): 40%
- Additional Rate (over £150,000): 45%
- In Germany, income tax is progressive, and the rates for the tax year 2021 are as follows:
- Up to €9,744: 0%
- €9,745 to €57,919: 14% to 42%
- €57,920 and above: 42%
- In France, income tax rates for 2021 vary depending on income levels and are progressive, ranging from 0% to 45%.
- In Spain, income tax rates for 2021 are progressive and vary by region. The rates range from 19% to 47%.
- In Italy, income tax rates range from 23% to 43%.
- In the Netherlands, income tax rates range from 9.7% to 49.5%.
- In Sweden, income tax rates for 2021 are progressive and range from 32% to 57%.
- In Switzerland, income tax rates vary by canton, and the rates can range from approximately 10% to 40%.
- In Denmark, income tax rates range from 8% to 55.9%.
- In Belgium, income tax rates range from 25% to 50%.
- In Poland, income tax rates range from 17% to 32%.
- In the Czech Republic, income tax rates range from 15% to 32%.
- In Hungary, income tax rates range from 15% to 40%.
- In Portugal, income tax rates range from 14.5% to 48%.
- In Greece, income tax rates range from 9% to 44%.
- In Ireland, income tax rates range from 20% to 40%.
- In Estonia, income tax rates for 2021 are a flat rate of 20%.
If you want to hire employees from several countries, there is no need to bide yourself with multiple IT vendors. Contact Flytika, as apart from having a vast database of tech talent of our own, we can hire IT specialists from any country you name. We work with the European, Israeli, and American IT labor markets.
Flytika’s approach to managing remote IT talent
With more than 20 years of experience in the market of software development, we understand that managing IT talent remotely requires careful planning, effective communication, and the implementation of suitable tools and strategies.
Here are ten key strategies we implement to successfully manage remote teams. We also recommend our clients utilize them to maximize the benefits of remote dedicated teams we staff:
- Clear communication channels. Establish reliable communication channels to facilitate regular interaction with remote IT professionals. Utilize communication tools such as video conferencing, instant messaging, and project management platforms to ensure seamless collaboration and information sharing.
- Set clear expectations. Clearly define project objectives, deliverables, and timelines to set clear expectations for remote IT talent. Provide detailed guidelines and documentation to ensure everyone understands their roles and responsibilities.
- Foster team collaboration. Encourage collaboration and teamwork among remote IT professionals by creating virtual spaces for sharing ideas, discussing challenges, and providing feedback. Foster a sense of belonging and inclusivity within the remote team to promote effective collaboration.
- Regular check-ins and performance reviews. Schedule regular check-in meetings to discuss progress, address any issues or concerns, and provide feedback on performance. Conduct performance reviews to evaluate remote IT professionals’ performance, identify areas for improvement, and recognize their achievements.
- Goal-oriented approach. For remote IT professionals, define specific goals and key performance indicators (KPIs). Focus on results and outcomes rather than micromanaging their activities. This approach encourages autonomy and accountability while ensuring alignment with overall organizational objectives.
- Provide necessary resources. Ensure remote IT talent can access the tools, software, and equipment required to perform their tasks effectively. Support them in setting up a conducive remote working environment that promotes productivity and well-being.
- Professional development and training. Offer opportunities for professional development and training to remote IT professionals. Provide access to online courses, webinars, and workshops that help them enhance their skills and stay updated with industry trends.
- Recognize and reward achievements. Acknowledge and appreciate the contributions and achievements of remote IT professionals. Recognize their efforts through rewards, bonuses, or public acknowledgment to boost morale and foster a positive work culture.
- Foster work-life balance. Support remote IT talent in maintaining a healthy work-life balance. Encourage them to establish boundaries between work and personal life, promote flexible working hours, and emphasize the importance of taking breaks and time off.
- Continuous feedback and improvement. Establish a culture of continuous feedback and improvement. Encourage open communication, solicit feedback from remote IT professionals, and adapt processes and strategies based on their input. Regularly evaluate and refine remote work policies and practices.
Contact us today to take advantage of our vast experience in IT outstaffing and software development. Augment your staff with unique European talent for the benefit of your IT project.