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By technology we mean a set of programming languages, tools, and frameworks a developer will require to build software. Some technologies may be more niche or specialized, require more wits, and invariably affect the final cost. It is worth considering the salary of programmers may depend not only on experience and competency but also on the specialization and programming language they use. For example, the average Java developer salary in Ukraine is around $4200 per month, whereas Scala specialists earn almost $5000. A front-end developer salary in Ukraine is around $3800 and a back-end engineer will cost $4000.

software developer outstaffing

As a result, hiring remote developers has become a widespread practice in 2023, as companies have discovered significant cost reductions in their development processes. Ukraine, Poland, and Latvia have become the most thought-after destinations among US companies due to comparatively low labor expenses. In fact, hiring mobile software developers from countries like Ukraine can save almost half of the budget compared to hiring developers with similar skill sets from Western Europe or the United States. Outstaffing offers developers many benefits, from participation in a variety of projects and professional growth to flexible working conditions and global opportunities. The combination of a dynamic work environment, continuous learning, and competitive compensation makes outstaffing an appealing choice for developers seeking a fulfilling and rewarding career. By embracing the outstaffing model, developers can enhance their skills, enjoy a healthier work-life balance, and unlock exciting career prospects in the ever-evolving software development industry.

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By the way, we have been recognized as the Top B2B company in Ukraine by Clutch. All thanks to our clients’ positive feedback and, of course, the expertise of the Uptech team. If you’ve decided that outstaffing is right for you, follow these steps to hire a reliable devops organizational IT outstaffing company. Outsourcing and outstaffing are based on a different hiring model and meet different business needs. Suit your project’s requirements in terms of experience, expertise, availability, and skill sets with hand-selected developers at Uptech.

Our developers have access to a global knowledge base and the ability to find any possible solution for your project. And thankfully, our commitment to work’s been appreciated worldwide. Create a list of questions you want to ask the software company in addition to the information they’ll give you. While crystal clear communication can take you a long way, not getting quality answers to your inquiries may suggest it’s time to look elsewhere.

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Below, we will analyze the basics of smart outstaffing and its most critical advantages, and we’ll also provide a helpful guide on choosing a reliable outstaffing agency. Outstaffing providers offer access to professionals that have worked on multiple projects. As a result, outstaffed developers come with a well-defined process and workflows that keep everyone productive. A dedicated team model involves two or more developers that are hired to carry out tasks of a development project.

  • Such misassumptions result in poor collaboration between the outstaffed and the in-house team.
  • The customer manages outstaff employees personally or by an internal project manager.
  • The growth rate of the software development subsector in 2021 was 20,4%.
  • Outsourcing software development projects to third-party companies or hiring remote developers may lead to a lack of control and communication between the in-house team and outsourced team members.
  • As an IT vendor based in Central Europe, Estonia, Croatia, Portugal, and Albania, we have access to a deep well of programming talent in various specialties and expertise levels.
  • Outsourcing companies also handle all hiring and HR processes, allowing for a faster start to product development and quicker launch of solutions.

That helps them to keep up with the hottest industry trends and innovations and know how to implement new technologies in practice. Ultimately, they can assist clients’ in-house teams in choosing the most efficient tech stack to create digital products. So many platforms offer a variety of professionals to choose from.

IT outstaffing company in action: successful projects examples

The client is responsible for the tasks, supervision, and control over the development process in which the outstaffed developer is involved. IT outstaffing allows you to finish your IT projects faster by expanding your development capacity. It allows you to save a lot of time and costs while it still provides you with full control over the development process. You’ll have access to a team of skilled developers that are already trained to do the tasks you need them to do. This allows you to scale fast without having to find and train talent yourself.

Most of the communication between the business and the outstaffing team is also direct. Thorough research and analysis of the professionals’ supply out there is the key to choosing the right specialists with the resources at the business’s disposal. In an outstaffing model, the hired developers join the client’s team and work under the client’s supervision with the resources provided by clients. It means that the outstaffing vendor is responsible for providing a qualified specialist to the client, paying their salary, and doing all HR management.

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The exponential growth of AI is reshaping the landscape of many industries, including software engineering. Developers got a powerful AI-helper ready to write code, interpret… Financial technology (FinTech) and artificial intelligence (AI) are two cutting-edge innovations that have recently altered the financial sector. Looking for new ways to increase conversions, enhance customer engagement, and automate routine tasks? Take advantage of a wealth of IT specialists, who are considered some of the best in the world. IT spending has already grown as much as 2.7% compared with the previous year and it is expected to return to pre-pandemic numbers, and continue to grow in the coming years.

Moreover, certain IT specialists are hard to find in some countries. Outsourcing limits control over resources and process, raises reliability concerns, and has higher costs compared to outstaffing. Clients may not have much control over resources and their quality, and may be charged extra for deviation from agreed upon processes. Reliability concerns include not knowing the developer’s level of expertise until work is completed, and higher costs due to management fees. To ensure professionals are hired, additional testing or interviews may be necessary, but at an added cost. You don’t need to hire an IT outstaffing team on a permanent basis and pay them a monthly salary.

Why Businesses Prefer Outsourcing and Outstaffing

So, the main difference is that outsourcing refers to the whole project support, while outstaffing provides hiring and maintenance of individuals. Let’s start with an explanation what the difference between software outsourcing and outstaffing is. When evaluating your potential IT outstaffing vendor, you should consider the following critical factors to ensure that they will meet your business requirements. In the modern business world, the demand for software development is increasing at an unbelievable speed. More and more businesses working in different areas require high-quality software to meet customer needs and stand out among competitors. The average hourly rate for outstaffing a developer in Ukraine ranges between $13 per hour for a junior developer to $40 per hour for a more senior developer.

For example, if a US company hires Philippines-based developers, holding a spontaneous meeting will be tricky as the business hours don’t overlap. Next, hold an in-person interview with the outstaffing team, preferably with a technical manager. Find out if they have developers armed with the skills that your team needs. Or if they have overlapping experience with your business’s operation.

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A software developer freelance is an enthusiastic representative of the development jobs. Meaning, that if he/she gets caught up in the project, he/she may be ready to deliver the outcomes that exceed expectations. Therefore, if there are some fixes or additions…they will feel like doing it instantly. If you realize your human resources aren’t enough for a timely and quality project delivery, staff augmentation may overcome these short-term workforce challenges. Alongside the peace of mind, lower costs, and full control, outstaffing has a few drawbacks to consider. Outsourcing is a popular practice for businesses that don’t need a permanent full-stack team as it’s costly and not always necessary.

Outstaffing vs. Outsourcing: What’s the Difference?

Even though there are some pitfalls to be aware of, freelance opportunities do have some potential for the company to cover its staffing needs. However, freelancing puts a lot more perspective on the planning, estimating the amount of work, defining comfortable compensation, etc. Speaking globally, the number of those who have decided to pursue freelance as a sole and long-lasting career has grown from 18.5 million to 28.5 between 2014 and 2019. March 2019 has shown that Google had 120,000 freelancers contracted as opposed to 102,000 in-house employees. By the end of 2027 freelancing is going to be 50% of the general workforce in the US.

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