Why is outstaffing much more profitable than hiring in-house?

When you decide

to build an application for your business, you face a reasonable question: is it more effective to open your own development department or choose outstaffing. Let’s have a look at its pros and cons.

	In-house in the Netherlands	Outstaffing with Mifort
1. Employment conditions	An employee works on-site full-time.	An employee works full-time remotely from our office under your management but is ready for business trips if required.
2. Hiring new employees	You have to find, interview, train, motivate your employees and be ready to pay for their vacation and sick leave.	All the recruitment process is on our side but under your full control.
3. Offer Acceptance Time	up to 60 days	from 7 to 21 days
4. Ongoing Support	You pay for HR position, and if you need associated services (like project management, design, business analysis) you have to start one more recruitment campaign to find those resources.	These expenses are on our side: we have HR department to manage our staff and a team of experts in different spheres and domains to help you with prototyping, design, business analysis, project management, and development operations. So it’s free of charge for you.
5. Team Motivation (corporate events, training programs, positive workplace environment, etc.)	You have to take care of that.	On our side. We do everything possible for the highest motivation and skills development of our team.
6. Communication	Personally in the office.	We value your time: communication could be via voice and video chats or messengers. We use all modern tools to keep you updated: Slack, Skype, Hangouts, etc. If required we can set up a business trip, to talk face-to-face.
7. Employee Replacement	You have to pay the amount equal to several monthly salaries of the employee you fire and start the whole hiring process again.	We have teams of professionals of different levels, expertise, and technology stack, so we are ready for employee replacement with no fines for you.
8. Vacation days	from 28 days	24 days
9. Legal	Official employment.	We sign a contract and may sign the NDA even before starting the project. All the code written by our team is owned by you.
10. Calculating costs per year	€50 000 – average annual salary	€35 000 – average annual salary
Holiday allowance	In the Netherlands, it is 8% of the annual salary – €4 000	free
Employer social security contributions, 18% of employee’s salary	€9 000
Office supplies: computer – €1000, required software – €500)	€1 500
Office rental, 10-15 m2	€3 500
Office furniture, stationery, etc.	€3 000
Recruitment fee – 25% of employee’s annual salary	€12 500
Total annual cost	€83 500	€35 000
Saving	€0	€48 500 annually, including human resource management, training, and motivation

Outstaffing model

is more profitable than hiring specialists yourself because it is much cheaper and you don’t have to think about working space, vacations, sick days and recruitment, you just target the team to success of your business.