In today’s modern economy, employers must strive to both maximize income and minimize expenses. Numerous practices have been proposed to address these goals however one but very simple and the most effective way to decrease expenses is through the use of outstaffing.
Outstaffing is a kind of human resources strategy allowing enlarging your professional net without additional resources involvement.
There is not always a strong necessity to hire new employees to company for its full functioning. Staff is considered to be hired temporarily depending on the project requirements and its goals and complexity and actual staff experience, responsibilities and involvement. And in this occasion Ukrainian IT staff has been considered to be the most appropriate and powerful in eastern Europe. Up-to-date outstaffing as a phenomenon becomes spread in Ukraine as well and US companies or EU corporations have been showing a significant interest to Ukrainian outstaffing.
To introduce how outstaffing is common in Ukraine we will briefly present study results performed in 2014 by Promotion Staff Group of companies.
The study evaluated personal responses for the control and implementation of HR-processes in leading national and international companies in Ukraine (heads of HR, HR-Directors, HR-managers and others). The statistics on that is very encouraging. To analyze the demand for outstaffing services in Ukraine the experts responsible for the HR processes from 1,000 domestic and international companies working in various fields were interviewed.
60% of these companies have used (or are still using) outstaffing services,
while 10% have not used them but are planning to.
Also, according to the estimates of Promotion Staff Group, the number of outstaffed specialists in Ukraine exceeds 25,000
Companies, especially international ones, prove to be very well aware of the term “outstaffing” and how it works. Futhermore the study suggested that international companies complied up to 72% among those who are hiring outstaff from Ukraine. And the most often outstaffing approach is implemented to business processes in the FMCG, pharmaceutical and banking sectors.
Outstaffing means you were hiring specialists (developers, designers, QA engineers etc.) from Sirin Software Company and the staff would continue working there, but effectively you became their employer and they would work on the tasks you give directly to them.
For you, these specialists are not on staff — they are “out of the staff.” Outstaffing companies are responsible for their specialists’ official employment, taxes, insurance and all that stuff. But you manage their work, guide their activities and control the whole process.
Basically, outstaffing entails the transfer of some employees working in one company to another legal entity who, in turn, incurs full legal responsibility for them; The “transferred” employees continue to work at their regular positions at the “host company,” but the responsibilities for maintaining their documentation, related salaries and taxes, and other work issues become the responsibility of the “provider company” to whom the employees were transferred. Outstaffing means employment into your staff of already existing and working Sirin Software personnel.
The advantages of outstaffing include reducing of burden on the HR, reducing of staff costs, minimizing of taxpaying-related risks and delegation of responsibilities.
There numerous examples of companies outstaffing the entire state except general director and chief accountant. This eliminates the need of filling in timesheets, employment work books and other documents related to HR outsourcing.
By using outstaffing company can remain in the status of a small business, while increasing the number of employees actually employed. Formally, a small number of employees and relatively low costs for staff improve financial performance.
This can be used as a tool to increase the investment value of the enterprise.
The major advantages of Ukrainian IT market before other Eastern European markets, when we are talking about IT outstaffing and IT outsourcing/ nearshoring, are the high standards of education, moderate rates and cultural proximity to the European mentality.
Ukraine is in the top 10 players in IT development now and Ukrainian IT specialists are conquering the international markets.
SIRIN SOFTWARE is one of those rare companies which have a successful experience with US market with positive feedback and a reference as an IT company of excellence. Our experience and diverse expertise can be of good use for companies of any size from small business startups to large international holdings. IT outstaffing is not about the lack of your in-house specialists, but about efficiency and economical gain. Outstanding quality of our consulting and outstaffing services is aimed at providing our customers with information security and comfort or work at the highest possible level.