6 Myths About Outstaffing Services

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If you haven’t heard about outstaffing, you must be living under a rock. Many companies resort to this business model for a variety of reasons, from gaining a competitive advantage to cutting costs. However, too many myths are revolving around the outstaffing industry. As a business owner, you should know the truth before deciding whether you should get your company involved in outstaffing or not. Let’s sort out the facts from fiction.

Myth 1. Outstaffing is too expensive

This myth has nothing to do with reality. In fact, the most obvious benefit of outstaffing services is that you can get significant cost savings while also reducing development expenses. Since you as a client assume management duties and responsibility for the final product, outstaffing typically turns out to be a cheaper model than outsourcing.

When small and midsize businesses accumulate a larger labor force, their fixed expenditures go up, which has a negative impact on profits. By outstaffing, they acquire a total control over their variable cost and get less expensive labor, which, in turn, leads to reduced development costs.

Just think about the following expenses:

  • Renting an office
  • Computer software
  • Furniture
  • Equipment
  • Office supplies
  • Utilities
  • General maintenance
  • Taxes

Yes, the outstaffing company will include all these things in their fees, but it will cost you much less than you would normally pay provided you hired employees the good old way. Especially if your office is located in a big city, where rent prices are sky-rocketing.

Moreover, you won’t have to worry about any labor disputes, legal action, fines, and regulatory inspections as it will be solely the responsibility of the staffing company.

Myth 2. Poor quality

Do you still believe that top-tier IT talent can be found only in Silicon Valley? It would be a huge mistake to think so. Successful software engineers and other IT professionals can be found almost anywhere since there are a lot of reputable universities outside the US and UK. That’s why an increasing number of companies resort to the outstaffing practice. It lets you cut costs without sacrificing quality. What’s more, it’s not rare for outstaffed employees to deliver more quality outputs, which is a huge help in expanding the business.

Myth 3. Your Security Might Be Compromised

Let’s debunk this myth as it’s quite common. Hiring remote developers doesn’t necessarily mean that you’re putting your company at risk. Whether or not the security of your company gets compromised depends on the people you work with. If you deal with a reputable outstaffing company like Mobilunity, you can rest assured that all of your sensitive data is kept safe at all times. Besides, you can always add an extra security layer by requiring that all employees sign a non-disclosure agreement to prevent data leakage.

Myth 4. The lack of commitment

Many employers out there still think that remote employees are lazy and wouldn’t bring much value to their company. They’re probably unfamiliar with the results of a recent study carried out by Harvard Business Review which proves that remote work boosts productivity by 13.5%.

Well, no one can guarantee that outstaffed employees would be fully committed to the job to perform their duties satisfactorily. After all, we’re all human. However, you can say the same thing about any employee. One can become unmotivated for different reasons.

Every company needs to let go of people who are not committed enough or whose performance is poor. With outstaffing, the process of replacing employees is much easier.

The official employer who takes care of paying taxes, administering human resources, and other hassle is the outstaffing company of your choice, but you have the final say in making decisions about dismissal, rewarding or imposing fines.

Myth 5. It’s a lot of hassle

You might be put off by the common myth that outstaffing involves maintaining a lot of documentation and developing arrangements with the outstaffing company, but it can’t be further from the truth. It’s quite the opposite. The outstaffing company takes care of all the hassle while you simply pay the bill once a month. In case any nuances emerge (new regulations, patent expiration, immigration issues, etc.), you will be provided a free consultation and help in a timely manner so that you don’t have to worry about such issues.

Myth 6. It’s the same as outsourcing

Since these two terms are often used interchangeably, one might think that there is no significant difference between these business models. In reality, outstaffing and outsourcing are as different as apples and oranges.

If you’re in need of project-based assistance, you’d most likely opt for outsourcing. You’ll hire an outsourcing company, and a whole team of developers will work on your project until they have it successfully completed. You won’t be able to talk to the team directly as they have their own managers and might juggle several projects from different clients simultaneously.

If you want full control, consider outstaffing. The team you choose will be an extension of your in-house staff, only working remotely and officially employed by the outstaffing company. The outstaffing business model will let you avoid miscommunication issues that might arise when third parties are involved, and you will be in charge of the whole process.

Final Thoughts

The benefits of the outstaffing business model not only enter the picture, but steal the show.  If you’ve figured out all the nuances and know for sure that outstaffing is right for your company, go for it. Choose a trustworthy company and make your business flourish like never before.

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