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Benefits of Software Development Staff Leasing Vs. Hiring


You have a new software development project in the pipeline. The only problem? Your existing full-time employees might not have the skills necessary to bring your new project to completion. In this case, you might think that outsourcing is the solution. However, there is an alternative option. Namely, IT and software development support staff leasing.


What is Staff Leasing / Employee Leasing?


Staff leasing is different from outsourcing. This is thanks to the fact that software development projects are not put in the hands of third-party developers or development agencies. Instead, employee leasing sees developers leased on a temporary basis, from third-party businesses and recruitment companies.


Employee Leasing Agreement Benefits


Outsourcing software development will usually see new software developed remotely. Often, software will be developed in a different country. This can lead to problems. ⁠— Specifically, problems with communication.


By comparison, developer leasing sees developers take up residence in-house alongside existing developers and IT personnel. This counters many communication problems. More importantly, leasing can often work to expedite the development of new applications.


Payroll and HR Benefits


Staff leasing is essentially just like hiring and onboarding new full or part-time developers. However, businesses free themselves of several financial burdens.


  • Companies don’t have to pay upfront costs to advertise vacancies, vet the qualifications of new developers, or manage new employee benefits and payroll.

  • It is easier for businesses to source accredited personnel and specific software development talents quickly.

  • Businesses have full control over the day-to-day management of employees. However, businesses with 1 - 25 full-time employees can save up to 40% on everyday HR costs.


Most importantly of all, staff leasing (sometimes referred to as body leasing), helps IT and software development companies fill staff vacancies quickly.


Shortages of software developers in the U.S. and elsewhere can see businesses struggle to fill vacancies. Employee leasing circumvents this problem, by allowing businesses to source new staff with relevant skills and qualifications fast.


How Software Development Employee Leasing Works


Staff leasing agreements can be fixed price/project based, or based on hourly remuneration for time and materials. Employee leasing can also see businesses lease individual employees or whole development teams.


To get started with staff leasing, businesses first need to engage a suitable Professional Employer Organization (PEO).


A PEO is a company which manages the hiring, payroll, and employee benefits, etc, of software developers available for hire. All businesses in need of developers need to do, is specify what kind of skills they need developers to be equipped with. Businesses and PEOs will then negotiate the duration and cost of a new employee leasing contract.


Software Development Employee Leasing Vs. Outsourcing


Staff leasing and software development outsourcing help businesses save on recruiting and HR costs. However, which option is right for you will depend on your current project specifications.


Staff leasing sees businesses remain liable for costs associated with the procurement of IT equipment, software, and the provision of physical office space.


By comparison, full outsourcing will see these costs absorbed by freelance developers and software development agencies. Only employee leasing, though, will give a business the ability to directly manage, monitor, and engage with developers, like they would regular employees.

Alternative to staff leasing is software development outsourcing.

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