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News | 25 Aug 2022
IT Outsourcing and Body Leasing. Two ways to find staff in a scaling business
Przemysław Pala
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IT Outsourcing and Body Leasing have become very viable, it is precious to know more about these options. Why? You can find specialists that possess the skills, know-how, and knowledge you require for your project. If you want to learn about the comparison, read our article about It Outsourcing trends.

 

Which option is better for scaling a business?

A company that wants to benefit from outsourcing services needs practical tools and technologies. That’s how businesses scale up. Closing personnel shortages is possible thanks to body leasing and IT outsourcing options. No matter if it’s a seasonal move or a permanent vision of the projects. What’s really valued is the possibility to redirect the attention of your own specialist towards other tasks and enable the new employees to solve some core issues. It could be compared to exchanging the processor in your computer. You add some brand new component that enhances the system's general performance. Generally speaking, IT outsourcing or body leasing help obtain external resources (people, knowledge, tools, know-how) to accomplish new objectives.

How IT outsourcing can change the game 03

 

How body leasing differs from IT Outsourcing?

On the one hand, you have IT outsourcing which delivers the whole gamma of some process. It’s the transfer of data, knowledge, experts, and innovations. All in one. On the other hand, there is body leasing. A process strictly attributed to human resources exchange. A recruiting company takes responsibility for payments, labor rights, HR issues, and functions of a regular employer. In both cases, body leasing and IT outsourcing requests from employees to meet the KPIs given by the employer and deliver the required solutions. 

Outsourcing the internet

Let’s develop the definition of body leasing. It’s a business tool to optimize internal processes and make them perform effectively. It all operates on confidential rules between the specialist and the employer regarding salaries, bonuses, savings, etc. It can be filling up a tiny sphere or reorganizing the whole office/management. Those temporary specialists may either work on little projects or be recruited to change the whole organization from the inside. It is important from many perspectives. One of them is labor protection which body leasing helps stabilize. 

One thing that seems peculiar in the case of body leasing is the general agreement of the employee with the provider. The options are:

  • The provider declares the salary based on a percentage of the payroll and monthly personnel expenses
  • The provider sets up a rule that salary is based on the monthly fixed fee per individual person

 

Tips made for body leasing

  1. Ensure your provider has enough financial resources to pay your payroll for at least one month. Let your accountant look at your provider's most recent balance sheet.
  2. Request a full breakdown of your monthly invoice from your provider (wages, taxes, cost of service, extras).
  3. Make sure that you have only employment contracts with your employees, not civil law contracts.
  4. Do not create "armies of private entrepreneurs" out of your staff - the tax office will definitely deduct these costs from your gross expenses and impose an income tax.
  5. Do not give your key people to the body leasing: they will undoubtedly be more useful in the "home area" than on the outside.

 

Business process of IT outsourcing

With outsourcing, you are not buying people but the service provider's expertise. The KPI for the function is the responsibility of the provider. For example, when outsourcing a trade marketing function, the agency's KPI would include the quality of the product displayed on the shelves.

 

The agency's reward can be either a percentage of the annual budget for the business process or a fixed monthly fee. The ratio will be higher for business processes that create remarkable value for the company. Executive Search services, where companies are willing to pay up to 40% of a top manager's annual salary. This is a relatively small expense when you consider that a strong top can increase the value of a business.

 

Tips useful for IT outsourcing

 

  1. Before seeking outside help, assess the importance of the matter to the company. For example, a court case worth several million dollars is definitely better left to outside lawyers. And legal documentation for routine problems can be prepared in-house.
  2. Sometimes it is more profitable to outsource a routine business process as well. A person who brings in more profit can be placed in the vacated space in the office.
  3. For small companies (up to 50 people), outsourcing routine business processes will always be more profitable than keeping your own permanent employee.

 

Find people you need in no time

We would like to give you a glimpse of what we do in Neontri, among other things. Regarding Body Leasing: Our client was a startup company from the financial sector that came with a concrete request of 3 developers for a project lasting six months. Moreover, the client had defined needs, estimated budget, and technical knowledge, making the initial understanding more accessible with benefits for both sides. Thanks to our efficient recruitment process we were able to deliver such a team in 3 working days. Yes, you read it right. It seems pretty impossible, someone could say. If that’s a comment that echoes in your mind, listen carefully to our story.