Why Outstaffing instead of Hiring
Hiring a remote team with the necessary skills is a common and approved practice in the software development industry. This method of completing IT projects has been quite popular, and in light of the current challenges, it is a straightforward option for keeping your project moving forward.
There is a bunch of benefits of outsourcing:
- It is typically more cost-effective than hiring in-house;
- You can save on recruiting costs or delegate this responsibility;
- It is well-suited to project-based work;
- You can tap into a diverse pool of talent and bring fresh perspectives to your team;
- Flexibility. If you encounter an emergency or need to replace a developer, you can easily do so with an outsourcing vendor. This allows you to continue making progress on your project without interruption;
- It allows you to focus on your core business, rather than on managing a team.
If you're not impressed by this list, let's count some numbers. On a separate note, we have already written an article covering why we prefer Flutter to any other mobile development technology. One of the key points was the cost-effectiveness of Flutter. We assume that this point is important to you as well, and we will use Flutter salaries as an example for our calculation.
|In-House||Staff Augmentation with Us|
|Hourly Rate||The median annual salary in the US is 130,000 USD or 62,500 EUR in Germany.
We will take the minimum and assume that the hourly rate is 30 USD (though for the US is actually much higher)
|The hourly rate depends on developer experience and location but on average it is 35 USD.|
|Holidays, Vacations, Sick Days Expenses||20-30 days per year or $4800-$7200||$0 (provided by WTF)|
|Equipment||$1500 per year||$0|
|Human Resources Hassle||
||We take care of everything|
|Human Resources Expenses||
|Management Work||If you are a manager, you clearly understand the amount of burden that should be in this cell.
It’s hard to describe to anyone what to expect from management work. Things always happen and you
need to resolve them.
|In most cases, we still need your help. But we will do our best to make it less strenuous for you. |
|Time to Find a Talent||1-6 months in most cases||1-14 day|
|Laying off||Not as easy as a 14-day termination notice||14-day termination notice at any time|
|Actual Hourly Rate for Every Working Hour||Roughly 40 USD for the EU and 70 USD for the US, plus your additional efforts||35 USD|
Based on the table we can conclude that outsourcing is often more cost-effective and effortless, as it allows companies to avoid the expenses and effort associated with hiring and managing staff. Additionally, outsourcing can make your team more flexible and provide access to a broader pool of talent and expertise, allowing companies to choose the best possible individuals or teams for the job. Finally, outsourcing can help to reduce the workload and improve efficiency, freeing you up to focus on other important tasks.