Development / Programming outsourcing

In the last article  we described outsourcing in programming as a solution for companies to reduce operation costs (

One of its strategies is HR outsourcing (staff) so to hire contractors.

It may have the form:

  • body leasing – refers to individual experts who bring a variety competences to companies which need them. These types of specialists are periodically hired by the lessee, so he gains support in the project, through the use of their knowledge and experience.
  • team leasing – refers to a team of specialists, which a company needs to perform defined tasks.

Both forms are increasingly being used to improve the management of IT projects and to reduce their costs, as they relieved the lessee of the recruitment process. The entrepreneur doesn’t have to build from scratch effectively cooperating team, which generates savings of time and money.

There are two models of cost accounting for companies who decided to outsourcing:

  • time & material – is used in projects that are hard to define in terms of range of tasks and work scheduling. In this model, the settlement of accounts take place upon the basis of worked hours, the so-called. timesheets. So it is suitable for projects related with application development, systems maintenance and other long-term tasks.
  • fixed price – project costs, its assumptions and implementation are determined at the beginning. After putting the entire project on its stages, the customer settles with supplier. In this case, any change of requirements throughout the project is much more difficult. So it is important to be well acquainted with the company from which we lend employees for our project.

Body leasing and their costs

Despite of periodic hiring the experts, body leasing is a solution that can significantly reduce long-term costs of the employer. The lessee does not waste time on searching for specialists on the market, and thus avoids the costs related to this. Provider companies (providing outsourcing services) have in their resources IT experts from different areas.

The client does not bear the costs for:

  • maintaining a full-time employee,
  • employee training,
  • HR, administration and accounting departments
  • hardware investments, licenses and office space

Keep in mind that the body leasing allows consultants engagement only for short periods – sometimes client needs such support for a few hours every few days. In those situations, no costs associated with full-time employment is a big adventage.

What should be avoided during outsourcing competence?

The choice of provider and the beginning of the negotiation process are the key moments, which significantly affects the quality of outsourcing services.  You should verify the competence of the company and protect yourself properly when you make a SLA (Service Level Agreement).

This is especially important with cooperation in the model of fixed price, eg. commissioning a design work for the testing team. In those situations it is necessary to precisely determine the schedule, organizational and logistical issues and other details of cooperation.

In the classical body leasing really common mistake made by client is wrong defined candidate profile. For example, clients usually indicate too high expectations in relation to actual needs, which results in increasing cost of the order. To avoid this, technical manager responsible for the project should attend in meetings with the lessor from the very beginning, making it easier to identify the actual needs of the customer.

Using body leasing remotely

The development of tools which enable remote  access to applications and a variety of systems, becomes more and more popular on the global market and accessible to almost everyone. Modern IT solutions allow to manage quality and the way of performing work by specialists. Telecommuting is also a good solution when it comes to problem solving related with replenishment of human resources and lack of office space.

However, when using this model of cooperation it is important to pay attention on security of data flow and the appropriate management of the organization and working time.