Candidate Search for Outsourcing and Outstaffing Companies

The structure of outsourcing and outstaffing companies and roles there

IT outsourcing companies are businesses that can take over software development or maintenance in part or entirely. Well-known IT outsourcing companies in Ukraine include EPAM, SoftServe, GlobalLogic, Luxoft, and others.

Imagine that you are an entrepreneur who wants to launch an apartment booking startup. If you’re facing tight deadlines and don’t want to manage a team yourself, outsourcing can quickly create a product based on your specifications. During this time, you can focus on communicating with stakeholders, attracting investments, or exploring other business development opportunities.

Almost any function within a company can be outsourced, from accounting support to marketing and promotion. Responsibilities within IT services, such as the development of web services and mobile applications, as well as product design or layout, can be delegated to an external contractor. IT personnel outsourcing companies are popular because hiring developers can sometimes cost 50–60% of an employee’s annual salary, and not all startups can provide a strong benefits package and favorable working conditions. However, this is already available through outsourcing, so entrepreneurs do not need to worry about human resource management. According to TechMagic, outsourcing development can save up to 60% of costs.

See more details

Outstaffing companies differ from outsourcing companies in that entrepreneurs have more opportunities to communicate with the team as they participate in hiring and selecting employees, as well as other team processes. In outsourcing, the client may not have any contact with the developer of their project at all. Usually, outstaffing services are billed based on the hours that a particular developer has devoted to the product rather than for the entire project.

However, the line between different IT companies is becoming increasingly blurred. As a result, it is possible to come across outsourcing companies where the client is more actively involved in management, or even outsourcing/outstaffing companies that develop their own products.

See more details

When comparing IT outsourcing companies to startups, there is usually a greater variety of roles in the former. There are dedicated specialists for specific functions, and their tasks within a single position are quite specific and well-defined. However, in outsourcing, programmers generally have less opportunity to influence the product and propose their own ambitious ideas.

In IT outsourcing companies, there are often open positions not only for developers but also for project managers, product owners, and business analysts. Outstaffing also has a stable demand for product designers.

An important skill that recruiters and hiring managers seek in candidates is an understanding of how to effectively organize work with clients. A product owner, for example, should be able to create a product roadmap, manage the development task pool, estimate deadlines and budgets, participate in planning, prioritization, and key team meetings, provide the client with feedback on the product, and communicate client requirements to the programmers. All of this helps establish a transparent communication process and complete the work on time.

Mykola Kliestov

CTO at ITExpert

“The success of outsourcing and outstaffing often depends on good team management and client communication. That’s why so much attention is given to the roles responsible for task setting, control, and execution.”

Peculiarities of candidate search for outsourcing and outstaffing companies

According to ITExpert’s experience, outsourcing companies have the following recruitment peculiarities:

• Need for stable recruitment results and flexibility in response to market changes. On the one hand, outsourcing companies always require senior and talented developers. On the other hand, all processes depend on specific clients, especially in smaller companies. Outsourcing firms are typically the first to lay off workers when a crisis hits.
• Demand for specific soft skills in candidates. For example, IT professionals should be comfortable switching to another project. Therefore, recruiters and HR professionals need to pay special attention to screening, understanding what motivates candidates, and ensuring cultural fit with the developers.
• Not all developers are willing to work in IT outsourcing companies. Some IT professionals tend to demonize outsourcing because of the allegedly high workload and low salaries, but these stereotypes are far from the truth in the market. Nevertheless, recruiters have to allocate additional resources to increase the response rate and address candidates’ objections.

Stas Shihov

CEO at ITExpert

“A common scenario for a rapidly growing company is that an IT outsourcing company is constantly looking for new clients, and when a new large project appears, the manager faces a challenge. They need to urgently hire a large team of experienced professionals. The speed and quality of recruitment can even determine whether the client stays with you.

Under such circumstances, you cannot hire and train a team of 10+ recruiters in a day to present candidates tomorrow. Moreover, in a month or two, these specialists may not have any work in your company. A more logical and efficient solution is to turn to an IT recruitment agency.”

Experience and advantages of ITExpert in searching for specialists for outsourcing and outstaffing companies

ITExpert has experience supporting recruitment teams for various outsourcing companies. We have worked with companies such as DevPro, SoftServe, Infopulse, Transcenda, and many others.

Case: We helped outsourcing company Transcenda with the search for various IT specialists. Over a six-month period, the goal was to consistently provide a large candidate flow for various positions. We successfully filled 30 vacancies within this timeframe. For example, we filled a Python position within the first two weeks of the search.

Since 2015, we have been testing various methods of looking for IT professionals in order to adapt to the processes of different types of companies. Here’s how we work.

Would you like to maximize the results of your recruiting team and quickly show relevant candidates to your client? We can help you with that. Please provide your contact information, and we will discuss the details soon!