Outsourcing firms often assist their clients through outstaffing services. An example of these services would be a vendor providing Company X with talent and administrative assistance while the whole management is carried out by the said Company X.
An outsourcing vendor in an outstaffing model should be able to fulfill the following responsibilities:
- Recruiting includes identifying specialists based on client requirements, conducting initial interviews, and referring newcomers to clients for follow-up interviews.
- Providing workspace and IT assistance to outstaffed specialists (often this includes giving laptops, access to the internet, and comfortable working conditions).
- Financial support for specialists (paying their salaries, providing accountant/layer services).
- Performing HR processes: communication support, conflict resolution, additional perks at the workplace, team building activities.
When it comes to outstaffing, clients face the following important responsibilities:
- Clearly stating the requirements for needed specialists (so that the vendor can find the right candidates).
- Conducting interviews, including technical ones, and choosing the right team members.
- Onboarding to the project.
- Providing an overview of the project’s vision and objectives.
- Offering collaboration and communication tools (Trello, Asana, Jira, etc.).
- Educating employees about the security of your data.
- Manage the newcomers: assigning work, monitoring their progress, refining project requirements, planning future tasks, etc.
Are talent outstaffing and classical outsourcing different? Definitely!
Usually, classical outsourcing is about the client delegating or sharing the responsibility of managing a project or part of a project with a vendor. From the selection of talent to the implementation of the product, you and your team work together to meet business objectives. During outstaffing, your vendor is just responsible for providing a working environment, paying your specialists on time, and making sure they feel comfortable at work. Nothing more. You are responsible for making things work as such – you are managing new people.
In short, this service model suits companies that lack some talent (e.g. do not have in-house backend developers) and are just looking for new staff. It will work out if you have enough managerial capacity and technical expertise.
Imagine it as hiring employees as part of your in-house team but allowing them to work remotely. Additionally, you get a wonderful perk – you won’t have to worry about administrative matters!
Pros: Full control over the management, lower costs (you don’t have to pay for PM activities), delegated administrative processes, access to the talent pool.
Cons: Your management will determine your staff’s efficiency. You do not benefit from a vendor’s expertise – only their talent.