The future of outstaffing: The era of global developers is upon us

Technology has always caused shifts in the labor industry and these changes always lead to a different form of human efficiency. The invention of boats did not replace driving but allowed humans to travel across seas, creating connections between different regions, and enabling people to spread their impact across multiple continents. Outsourcing is becoming very popular in various forms and industries. Major technology titans are outstaffing crucial projects and making development partnerships in order to boost their productivity. The need for outstaffing is growing on a monthly basis and companies around the world are recognizing the need for having a reliable technology partner. The era of global developers is truly upon us. Looking at the IT market in the UK alone, one survey showed that over 70% of technology employers expect to face a talent shortage this year. Hiring freelancers is not a long-term solution so finding the right outstaffing partner will become a new norm for growth in thriving industries.

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The emergence of the experience economy

The latest report by Gartner reveals that IT spending is expected to climb to $3.8 trillion this year, a 3.2 percent increase from the projected spending in 2018. The lack of in-house engineering talent will boost the development of the outstaffing industry and push leaders to hire more talent. SHORE teams is working with companies of all sizes to help them establish strong development partnerships. Therefore, we understand the motive behind the rising need for global developers. Experience economy is becoming a new trend within companies – from experience that is delivered to customers to companies hiring experienced people to build great products. With new generations of customers making drastic changes in their expectations, everything will be resolving around experience in the near future.

Experience is not an amorphous construct; it is as real an offering as any service, good, or commodity. In today’s service economy, many companies package experiences around their offering to create branding and sell more products. But, in order to build a successful business, companies will have to start investing resources in designing premium experiences that can be sold on the market as clear offerings. This transition is not easy as it represents a complete economic shift but everything is doable when you work with talented and “experienced” people. As the world moves forward and we start changing our routines, builders will have to form alliances and build an ideal world for us so they can capitalize on its features. This is where the outstaffing comes in as the most efficient form of collaboration between different entities interested in acting as one unit.

For more than two centuries, people have been building empires by adding new experiences to their service. We can take Airbnb as an example. Many people love the experience of sharing a home with a stranger in a new country more than the fact that they need a bed to sleep in. Harvard Business Review had a fantastic explanation of the importance of the experience factor within the global economy. In their July-August, 1998 magazine edition they wrote: “To appreciate the difference between services and experiences, recall the episode of the old television show Taxi in which Iggy, a usually atrocious (but fun-loving) cab driver, decided to become the best taxi driver in the world. He served sandwiches and drinks, conducted tours of the city, and even sang Frank Sinatra tunes. By engaging passengers in a way that turned an ordinary cab ride into a memorable event, Iggy created something else entirely—a distinct economic offering. The experience of riding in his cab was more valuable to his customers than the service of being transported by the cab—and in the TV show, at least, Iggy’s customers happily responded by giving bigger tips.”

In today’s world where everything is based on new technologies, building such an experience or revolutionizing a service requires a lot of development talent, a talent that is often not available for hire. This is that productivity hole where outstaffing can act as a perfect bridge connecting different progress regions and allowing “travelers” to reach success. Countries are also starting to recognize the need for the global workforce through different economic and political lenses. It is really easy to understand the benefits of trade at the international level. David Ricardo, one of the most influential British political economists, referred to international trade as a comparative advantage: even when one country is better than the other in two industries, specializing in one field and trading for access to the other is much more useful and will benefit each nation at much larger scales. Having the need for partnerships that will result in joint productivity is the first step towards progress.

The future is going digital

As technology becomes cheaper and internet connectivity spreads across the world, people in impoverished countries will be joining the global workforce movement and selling their skills on the market. In the near future, as online collaboration expands, technology platforms will enable companies to hire people and form development unions through dynamic and continuous auctions. More companies with a common goal will be organizing their impact through digital channels and joining forces with other brands that are focused on similar market aspirations. This will directly expand economic opportunities across the planet and change the nature of work. Will this work? Well, people often share common aspirations, while remaining profoundly different in the way their culture organizes their overall pattern of behavior or understanding of the world around them.

Online outsourcing is the urban manifestation of international trade and should receive the same support from economy leaders as free trade does. As the future of the outstaffing industry is already forming its platform online and taking outsourcing out of the picture as the efficient method for long-term collaboration, we can confidently say that outstaffing represents the partial foundation of the future of the labor industry.

Innovation will become the new currency

Innovation enables companies to differentiate themselves and gain new competitive advantages. But, in the current world, there is no economic incentive for service providers to provide innovation when they are bound by a contract. Therefore, unlike outsourcing and other forms of freelance partnerships, having an outstaffing partner will create a strong bond between the parties involved in the development cycle, empower companies to motivate their partners to join forces and share their vision with the rest of the “global family”. Knowing these facts and understanding the need for innovation and work sharing, in the upcoming months, new companies will form to harness human capital and filter the most innovative players. Bringing human capital online and creating these “outstaffing unions” will be the largest labor alteration the world has seen.

As more freelancing and outsourcing platforms emerge on the market and technologies start replacing the human workforce in a traditional sense, more people will be joining the international workforce movement. We also might see the appearance of new payment standards such as output-based model that refers to paying people based on their performance, even within a team. For example, this can take the form of equity options or paying workers for every unit produced or line of code written. The billions of people coming online and looking for remote freedom in the upcoming years will represent the economic transformation of our time

Outstaffing becomes the new normal

New collaboration models and teamwork strategies also mean new hiring laws that are introduced on the market. With greater emphasis on the health and well-being of all employees or members of a specific team, it is likely that new organizational structures and wellness solutions will be standardized and introduced across the globe. This shift might even involve new on-site or off-site professionals and ambassadors in different countries that can directly work with all members of the team and provide them with a specific value. This can include therapists, trainers, legal advisors, coaches, doctors etc. A happy wife equates to a happy house, right? Well, “happy employees = successful company”.

Taking everything into consideration, there is no doubt that outstaffing will become a new standard for growth in the near future. Finding the right entity or a team that will join you on your mission is a difficult job, but this barrier is already being covered by upcoming service providers. SHORE teams is a team of experienced industry professionals that are passionate about helping revolutionary companies in Western Europe identify and find the right development partners, establish a great relationship, and work together on building complex and successful products. We understand that the need for the ideal partner is not based on the need for job completion but the necessity for growing an in-house team with top-tier developers that are present across the globe and obsessive about building a better tomorrow. Once you find the right fit and the partnership goals are established, a more defined course of action must be set for innovation and productivity. This course of action is determined by the impact and market objectives. Once everything is clearly defined and everyone understands the final objective, the collaboration can begin and you can enter the future of the labor industry. Like Helen Keller, an American author and a political activist, has said: “Alone we can do so little; together we can do so much.”