Team leasing of programmers – when and why should you focus on this form of cooperation?
What is team leasing, for which companies is it the most advantageous solution and what to pay
special attention to when choosing such a model of cooperation?
As part of team leasing, you can recruit one or several employees for your project. You can also recruit a whole team of experienced specialists who would most likely – if it wasn’t for this solution – be beyond the company’s recruitment possibilities.
Team leasing is a cooperation model that gives access to the skills, knowledge and experience of an external team of programmers with qualifications tailored to the required project. By borrowing a ready team, first of all, you don’t waste time on the recruitment process and assimilation of new employees to the culture of the organization. Often saving this time can save the entire project and a lot of money.
For whom team leasing will be the best option?
By hiring a team, you can instantly move from an idea to planning and further work on a given project, which speeds up the implementation of the idea. The team can implement the project comprehensively, taking part in the entire software development process.
This employment model usually bypasses the risk of organizing work and acclimatization in a group of new employees. It also avoids the need to spend a lot of time on many interviews with candidates. A ready, well-coordinated team is hired to start the task right away.
Team leasing will be the most attractive form of cooperation for companies that want to save on infrastructure and human resources cost as well as those which experience momentary demand spikes for processing capacity necessary for the development of IT products.
This way, without fixed costs for your own team’s upkeep, it is possible to develop products while maintaining control over them.
Considering the above, it is a model that perfectly fits into the business model of start-ups, for which the basic product is an IT project. It is also a good solution for small and medium-sized enterprises supporting their own IT solutions for sales and production.
Team leasing often turns out to be very helpful for companies with small-sized IT departments, as well as for companies that want to implement a project that goes far beyond the daily skills of their employees.
How much will you save by choosing team leasing?
A standard development team usually consists of 4 to 8 people (i.e. even 3 senior developers and 5 regular developers). To select the right candidates, you must complete the search and recruitment process. The cost of recruiting a senior developer is between € 6,000 and 10,000. Recruitment of mid-developer costs from 5,000 to 7,000 €. These are estimated amounts based on market rates of recruitment companies.
By choosing team leasing, you gain a properly selected team, without incurring these costs, which are often at the budget level of the entire project for which programmers are recruited.
Team leasing in practice – a few tips
Flexible team supplying companies should implement proven good software development practices. Agile and Scrum approaches are already the standard.
When choosing a company to provide a team, pay attention to whether the team is well-coordinated, as well as if the team members have shared experience in other projects.
Our experience gained while working on projects in industries such as real estate, insurance, industry, banking, start-ups and public administration units has shown us how important a well-chosen competence of the entire team is. That is why we advise: put emphasis on the specific competences of the team. The team will not be able to achieve the goal without appropriate qualifications.
Meet the team leader, as this is the person with which you will have the most contact. Pay special attention to whether you get along well with this person in both technical matters and ordinary conversation.
Accounting and how not to lose control of the budget
In the Team Leasing model, we practice settling work in the time&material model. It consists in the settlement of actually paid hours worked after a given period (2 weeks to 1 month). It is a convenient model for both sides – on the one hand, it gives the flexibility to stop the project, on the other, it reduces the costs of retooling or re-estimating the scope.
In order for this model not to cause the risk of losing control over the budget, several rules should be followed:
● set a budget limit at the beginning of the project that will be known to all team members,
● perform task planning and time-consuming estimations of the entire project before starting work,
● correct your plan every week or two weeks and check your work progress and remaining budget,
● make very accurate estimates for the next task (for the next week or two weeks of work),
● review the effectiveness of estimates and task implementation once a week or two weeks,
● constantly correct the planning and organization of work – focus on eliminating downtime, blockers and low efficiency.
What are the advantages of team leasing?
Here are the most frequently mentioned pros of this cooperation model:
● reduction of employee retention costs,
● saving time on searching for, selecting and then recruiting a programmer,
● the ability to adjust the team and its skills to a specific project,
● certainty that a specialist is being employed (the qualifications have been verified earlier),
● quick response – important when an employee is needed immediately,
● little formalities – a contract with a company and an invoice are enough,
● payment for a finished, quality product.
Many years of practice and experience leave no doubt: team leasing often saves the entire project, plenty of time and a lot of money. So if you see that your business falls within the described group of companies for which this model of cooperation is the best option – use it. You will quickly experience all the above-mentioned advantages.