24 January 2019

Outstaffing in Ukraine

The IT sector in Ukraine continues to be one of the most dynamic and fast-growing segments of the economy. The export of Ukrainian IT services increased by 20% for the last year. Ukrainian companies were included in the list of the best providers of IT services. Now such model as outstaffing is gaining popularity. There are almost no firms of any size that don’t benefit of the low price and professionalism of offshore talent. More and more foreign companies are turning to Ukrainian outstaffing vendors. This is explained by a large number of qualified personnel, favorable business conditions, and other factors.

What Is Outstaffing

Outstaffing is a special model of personnel management whereby the staff involved in a particular project is provided by a third-party company (outstaffing company/outstaffer/employer) as office workers to the client (customer) for their projects. In other words, outstaffing is the possibility to get work done through an intermediary company.
The outstaffing company takes full responsibility for every worker by providing all necessary documents, banking, legal and remittances as well as solving all current issues connected with personnel management. The outstaffer is in charge of paying wages, taxes, executing labor legislation (hiring, compensating, firing, etc.). At the same time, the staff works directly for the customer.

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What Are Main Benefits of Outstaffing

Majority of IT companies worldwide have chosen the outstaffing model for its numerous benefits as mentioned below:

  • Reduction of expenses on human resources record management
  • Eliminates the need to calculate and transfer taxes for every employee and draw up relevant documents
  • Cutback of expenses on searching for highly qualified staff
  • Possibility to hire a team for project work
  • Feasibility to optimize staffing
  • Total flexibility to increase or decrease the number of hired specialists
  • 100% work optimization due to the possibility to identify employees’ skills and guide their activities to the demands of a project
  • The possibility to manage the team directly and hold meetings whenever the need arises
  • Increase in company’s productivity
Things to Know about Outstaffing in Ukraine

Ukraine is one of the most popular countries in Europe when it comes to IT-outsourcing. There are four IT-companies in Norway which are engaged in outsourcing to Ukraine: EVRY ASA, Itera ASA, Scandinavian House AS and City Media Digital AS. Such a big interest in cooperation with Ukrainian companies can be explained by the list of advantages:

  • Constantly growing number of specialists
  • Outstanding level of knowledge
  • Low price for high-quality experts
  • Convenient time zone
  • Beneficial geographical location
  • Favorable cultural environment
How to Choose Outstaffing company

Turning to outstaffing service the company may meet some problems. For example, because of remote work sometimes it is difficult to manage all the processes properly. The communication becomes more complicated and you need to explain simple tasks super thoroughly to be sure that they will be done in the right way. Besides, the demand on Ukrainian outstaffing services is growing that causes the increase in the number of companies providing such services, and in this case to choose the reliable one is a real challenge. To avoid all possible drawbacks it is necessary to make several steps before choosing outstaffing contractor:

  1. Explore the company’s clients. Try to find out how many companies turn to it services for the last 2-3 years.
  2. Look through the company’s case: how many successful projects they have, what specialists they have found. Make sure it meets the needs of your projects.
  3. Search for recommendations. Find contacts of the company’s clients and ask them to share their experience.
  4. Ask what additional service the company can offer to avoid possible drawbacks of outstaffing model (for example, personal account manager).
  5. Make sure your future personnel knows English or will be able to speak one language with you.
  6. Don’t forget to find out if there are lawyers in the company’s staff. It will help you to avoid legal risks.

If to summarize nowadays outstaffing in Ukraine is the effective business model that is to optimize working processes by reduction of regular staff and personnel costs, and clear assignment of tasks on employees according to their skills and project’s needs. Outstaffing AS is a company that offers more than just outstaffing services. It is your smart partner.  We’ll provide your project with true experts carefully interviewing every candidate. Our company also offers many additional services like office organization, personal account managers, lawyers, etc. Feel free to contact us and learn more about benefits with Outstaffing AS.

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