Outstaffing is a new black. Why do growth-stage startups opt for it

 Outstaffing is a new black. Why do growth-stage startups opt for it

In 2023, Outstaffing is a new black businesses focused on growth or willing to navigate through a starting recession may consider options of outsourcing and outstaffing for numerous reasons. These two models share some basic principles — delegating certain processes to a third party in order to increase productivity, optimize costs, and get an opportunity to focus on more relevant tasks. Both big companies and developing startups cooperate with third-party service providers, one way or another. 

Outsourcing usually means a complete delegation of some processes (like  product development or performing tech support) to a service provider who is responsible for the result. And outstaffing means enhancing an in-house team with talented specialists who are completely integrated into the working process, but their recruitment, onboarding, retaining, and routine tasks like tax payment, contract signing, or payroll are performed by an outstaffing agency. In fact, business gets an extended team and takes control of the development process without all the burden of hiring and retaining tech specialists. The main question still is how exactly IT outstaffing company can help growing businesses? For more in-depth information on managing offshore software development effectively, you can explore this valuable resource at https://sloboda-studio.com/blog/how-to-manage-offshore-software-development/.

5 Benefits of the outstaffing

Cost reduction

Costs of hiring a software developer in countries like the US may vary from $28,548 to $35,685. Still, businesses can significantly reduce their expenses with outstaffing: recruiting specialists from emerging labor markets, cutting costs on hiring and training process, management, tax payment, etc. Also, with the outstaffing model, specialists usually join the working process remotely, and it takes off the need to invest into an office and equipment. With young tech companies that need to operate within a restricted budget, outstaffing is a great option to get quality services for a reasonable price.

Access to a larger talent pool

With smart outstaffing, businesses have no need to limit themselves with a certain number of local specialists who may or may not be interested in their open positions. Outstaffing companies can offer high-quality services from tech specialists all over the world, with versatile backgrounds and areas of expertise. Whatever specific demands your company has, like specialists with experience in fintech, or a particular stack of technologies — outstaffing companies can help with that.


Growing businesses face the necessity to expand their customer base, enter new markets, launch new products, scale their operations, and do it quickly, without sacrificing quality. At the same time, 68% of companies need to spend more than one month to hire one developer. Fast expansion becomes much easier with outstaffing company services, as they can have much more flexibility than with hiring a bigger in-house team.

Meeting tight deadlines

If an in-house team is struggling with project deadlines, or a new product launch is planned, and regular tasks should still be resolved on time, outstaffing is an option. If a job needs to be done right now — vendors can offer you specialists who will get it done right away. Moreover, outstaffing is a perfect option for you if you need to enhance your team for a specific period of time. Instead of hiring a full-time developer for your in-house team, you can get a skillful professional to join you for a couple of months, if that is what your project needs.

Simpler management

With outstaffing, the management process is not that different from an in-house one. A company has full control over all the processes, as the outstaffed specialists simply act like an extension of their own team. At the same time, businesses can delegate all the HR processes, from recruiting to retention, and administrative tasks, like contract and payroll management, to an outstaffing vendor, leaving time to focus on core tasks. 

Final thoughts

Outstaffing gives growing businesses an opportunity to quickly enhance their team with qualified specialists. It is a perfect solution for companies who want to free up time for business operations, scale fast, and not limit themselves with a local talent pool. Outstaffing gives you total control over the extended team’s work, as you can make sure that quality is on the sufficient level, and the workflow is established properly.