IT How to Get Started with Outstaffing: A Step-by-Step Guide

7 min readNov 8, 2023

In today’s fast-paced and competitive business world, staying ahead of the curve is paramount. Outstaffing, a concept that has been gaining momentum, is a game-changer for many businesses. It offers a cost-effective way to access top talents and boost efficiency. This comprehensive guide will walk you through the process step by step to help you get started with outstaffing.

What is Outstaffing?

Outstaffing, often referred to as “staff augmentation,” is a business model where you delegate tasks or projects to a third-party company, which is often located offshore. This third-party company handles specific functions or roles for your organization. Unlike traditional outsourcing, outstaffing typically involves hiring a dedicated team or individual to work exclusively on your projects. The key advantage is that it allows businesses to reduce costs while maintaining high-quality results.

Step 1: Define Your Needs

Before you dive into outstaffing, you need to take a close look at your organization’s needs. What tasks or roles do you want to outsource? This step is crucial for identifying the areas where outstaffing can make the most significant impact.

Start by assessing your current team’s capabilities. Where are the gaps? Which tasks or roles require specialized skills or resources that you currently lack? By identifying these areas, you can pinpoint the specific functions that are best suited for outstaffing.

Step 2: Research Service Providers

Selecting the right outstaffing service provider is a critical decision. It can significantly impact the success of your outstaffing strategy. Here are some essential considerations when researching service providers:

Reputation: Look for companies with a proven track record in outstaffing. Check client reviews and testimonials to gauge their performance and reliability.
Industry Expertise: Choose a service provider with expertise in your industry. This ensures that they understand the specific requirements and challenges unique to your business.
Communication: Effective communication is key when working with an outstaffing partner. Ensure that the service provider can communicate fluently in your language and understands your business objectives.
Flexibility: Opt for a service provider that can adapt to your evolving needs. Business landscapes change, so your outstaffing partner should be flexible enough to accommodate those changes.
Data Security: With data being a critical component of many businesses, it’s essential to discuss data security measures with your potential outstaffing partner. Ensure they have robust protocols in place to protect your intellectual property and sensitive information.

Step 3: Budget Analysis

Outstaffing is known for its cost-effectiveness, but it’s essential to establish a clear budget. The budgeting process should encompass all related costs to avoid any financial surprises. Consider the following aspects when analyzing your outstaffing budget:

Salaries: Understand the salary structure and any variations that might occur due to location and skill level.
Management Fees: Many outstaffing service providers charge management fees, which cover administration and project management.
Additional Expenses: Be aware of any additional expenses that might arise during the outstaffing process, such as legal fees, software licenses, and hardware requirements.

Having a well-defined budget helps you plan and allocate resources more efficiently. It also enables you to assess the return on investment and the cost-effectiveness of your outstaffing strategy.

Step 4: Legal Framework

Navigating the legal aspects of outstaffing is a critical step in protecting your business interests. Clear and well-structured legal agreements are essential to ensure a smooth and secure outstaffing partnership. Some key legal aspects to consider include:

Contracts: Draft clear and comprehensive contracts that outline the roles, responsibilities, and expectations of both parties. These contracts should also cover termination clauses and dispute resolution procedures.
Non-Disclosure Agreements (NDAs): Ensure that you have non-disclosure agreements in place to safeguard your intellectual property and sensitive information.
Data Security: Discuss and establish data security protocols to protect your business data and ensure compliance with relevant regulations, such as GDPR (General Data Protection Regulation).
Service Level Agreements (SLAs): Define the service levels and performance expectations for the outstaffed team. SLAs help ensure that your service provider meets your requirements and quality standards.

Step 5: Onboarding

Once you’ve selected an outstaffing partner, the onboarding process begins. Effective onboarding is crucial for setting the foundation of a successful outstaffing relationship. During this phase, it’s essential to focus on communication and alignment. Here are some steps to consider:

Orientation: Provide a detailed orientation to introduce the outstaffed team to your company’s culture, values, and goals.
Project Understanding: Ensure that your offshore team understands the objectives and expectations of the project they’ll be working on.
Tools and Resources: Provide the necessary tools, software, and resources to allow the outstaffed team to perform effectively.
Regular Updates: Maintain regular communication channels to keep everyone in the loop about project progress and address any questions or concerns promptly.

Step 6: Project Management

Effective project management is the key to ensuring that your outstaffing strategy yields the desired results. It’s essential to have a well-defined project management process in place to monitor progress, track performance, and resolve any issues that may arise. Here are some project management best practices:

Use Project Management Tools: Implement project management tools like Asana, Trello, or Jira to streamline task allocation, progress tracking, and communication.
Regular Meetings: Conduct regular meetings with your outstaffed team to review project status, address any challenges, and plan next steps.
Feedback and Continuous Improvement: Encourage open feedback and suggestions from your offshore team to continuously improve processes and collaboration.
Quality Assurance: Implement quality assurance processes to maintain the desired level of quality and ensure that the project meets your standards.

Expanding the Article Further

The six steps outlined above provide a solid foundation for getting started with outstaffing. However, there are several other aspects to consider when embarking on this journey. Let’s explore some additional key points to help you make the most of your outstaffing strategy.

Cultural Considerations

When working with an outstaffed team located offshore, you’ll likely encounter cultural differences. It’s important to be aware of these differences and address them proactively to avoid misunderstandings and ensure smooth collaboration. Consider these cultural aspects:

Time Zones: Be mindful of time zone differences and plan meetings and communication accordingly. Tools like World Time Buddy can help coordinate schedules across time zones.
Communication Style: Different cultures may have varying communication styles. Some may be more direct, while others prefer indirect or formal communication. Understanding these nuances can enhance collaboration.
Holidays and Working Hours: Be aware of local holidays and working hours in the region where your outstaffed team is located. This can impact project timelines and deadlines.
Language Barriers: While language proficiency is often a priority in selecting an outstaffing partner, minor language barriers may still exist. Patience and clarity in communication can help overcome these challenges.

Building Trust

Building trust between your in-house team and the outstaffed team is crucial for the success of your projects. Trust enhances collaboration, fosters effective communication, and ensures that everyone is aligned with the project’s goals. Consider these strategies to build trust:

Regular Check-Ins: Schedule regular check-in meetings with both your in-house and outstaffed teams to maintain open lines of communication and build rapport.
Transparency: Be transparent about project goals, expectations, and progress. When everyone is on the same page, trust is more easily established.
Shared Goals: Create a sense of shared ownership in the project’s success. When your outstaffed team feels invested in the outcome, they are more likely to work diligently to achieve the desired results.
Feedback and Recognition: Provide feedback and recognition for good work. Acknowledging achievements and efforts can boost morale and trust.

Managing Remote Teams

Effectively managing a remote team, especially one that is located in a different geographical location, comes with its own set of challenges. However, with the right strategies and tools, you can streamline the management process. Consider the following:

Remote Collaboration Tools: Invest in collaboration tools that facilitate communication and project management. Tools like Slack, Zoom, and Microsoft Teams can bridge the gap between teams.
Performance Metrics: Define clear performance metrics and KPIs (Key Performance Indicators) to evaluate the effectiveness of your outstaffed team.
Clear Roles and Responsibilities: Ensure that roles and responsibilities are well-defined. When team members know their roles, it promotes efficiency and accountability.
Regular Team Building: Despite geographical distances, team building is essential. Organize virtual team-building activities to foster a sense of camaraderie.

Handling Challenges

Outstaffing, like any business strategy, can come with challenges. It’s important to be prepared to address them when they arise. Common challenges in outstaffing can include:

Communication Barriers: Differences in language and communication styles can lead to misunderstandings. Address these issues promptly and encourage open communication.
Cultural Conflicts: Cultural differences may occasionally result in conflicts. Establish a culture of respect and diversity to mitigate such issues.
Quality Control: Ensuring that the quality of work meets your standards can be a challenge. Implement quality assurance processes and feedback loops to maintain quality.
Data Security: Data breaches and security risks are a concern in outstaffing. Have robust data security measures in place and ensure that your outstaffing partner follows best practices.
Managing Multiple Time Zones: Coordinating work across multiple time zones can be complex. Use time management tools to simplify scheduling.

Conclusion

Outstaffing is a valuable strategy for businesses seeking to access top talents, reduce costs, and boost efficiency. This step-by-step guide, along with the additional insights provided, should help you get started with outstaffing successfully. By understanding the fundamental steps and addressing the various considerations, you can maximize the benefits of outstaffing for your business. Remember, successful outstaffing is not just about finding a remote team; it’s about building a productive, long-lasting partnership that contributes to your business’s growth and success.