From this guide, you will learn:
- What is IT Outsourcing?
- Benefits of IT Contracting with Devire
- Where does IT Outsourcing work best?
- When is it worth using IT Contracting services?
- How is IT Outsourcing implemented?
- How much do IT Contracting services cost?
- Billing models in IT Outsourcing
- IT Contracting service models
- IT Contracting with Devire
- Is IT Contracting the right solution for your company?
- IT Contracting vs. employment contract from an employer’s perspective: A comparison
- The future of IT Contracting IT Contracting
- FAQ – key questions regarding cooperation
What is IT Outsourcing?
IT Outsourcing (IT Contracting) is a flexible form of collaboration with IT specialists across various skill sets. It is a type of “leasing” qualified professionals from an agency for a specific period to execute a particular project. This solution is also known as IT Staff Augmentation.
As part of Devire’s IT Outsourcing service, we delegate an IT contractor to carry out a project at the client’s site. This enables an immediate project start—the agency is responsible for sourcing and settling the contractors. The client can flexibly select the required competencies for a specific phase of an IT project without the need to permanently maintain large internal teams.
The agency manages the entire process: hiring, signing contracts, administration, HR and payroll services, and finally, salary payments. Once the terms are agreed upon and the candidate is accepted, the agency delegates the IT contractor/employee to the project. This resembles leasing specialists for a set duration to complete a specific task. A good agency maintains constant contact with the client even after “hiring” the expert in the IT contracting model to ensure the collaboration is proceeding as planned.
Advantages of IT Contracting with Devire
There are many benefits to IT Contracting with Devire. Above all, it is an efficient solution that allows you to significantly reduce costs and acquire high-quality professionals. Building teams through IT Staff Augmentation also saves a tremendous amount of time. Our clients do not have to spend time searching for specialists for their projects. At Devire, we quickly delegate qualified specialists or entire IT teams to collaborate with you.
As part of IT Outsourcing, Devire handles all formalities and procedures related to hiring individual IT employees or entire teams. We manage the outsourcing of IT specialists, contracts and billing, payroll, and payments. Furthermore, we can provide the necessary equipment and organize workspace for individual specialists or even entire teams working on your project.
By using the IT Contracting model, the client retains full control over the execution of assigned tasks (deciding what and how a given person or team works on). However, they do not have to deal with recruitment, hiring, or formalities such as sourcing experts on the market, contracts, settlements, payroll, or equipment availability. This saves time—but is that all?
Flexibility
IT Contracting offers immense flexibility: the client can react quickly to project changes—shifting resources or adding people with specific competencies to the project for just a few days or weeks, instead of committing to long-term contracts.
Money.
This form of cooperation is also cost-effective. Firstly, the client adds resources to the project only when truly needed. Secondly, it optimizes additional costs that usually accompany permanent employment (e.g., central costs, so-called overheads). In the case of IT Contracting, these expenses are classified as service costs rather than employment costs. Even during a “hiring freeze,” the client can entrust the execution of IT projects to a team of contractors.
Where does IT Outsourcing work best?
IT Outsourcing works best for companies running multi-stage projects divided into specific tasks and phases, where each task requires a separate estimation. Practice shows that this service is utilized by both large and small companies. Public institutions are no exception and also use this form of cooperation, entrusting specific tasks to contractors. For years, Devire has supported clients across a range of industries and market sectors. Our experience includes:
Finance and insurance
Medical and pharmaceutical
Public sector
IT / Telco sectors, including software houses, integrators, and hardware suppliers.
When is it worth using IT Contracting services?
IT Contracting works whenever you prioritize time and flexibility. Outsourcing solutions from Devire are available almost immediately and offer the possibility of flexible billing and project management. Therefore, IT Contracting is perfect for projects divided into individual tasks and phases. Each task is estimated separately, allowing for the addition of new experts with specific competencies needed at any given moment.
Specialists’ competencies are selected according to the client’s expectations and the required technology. If additional skills, qualifications, or a different programming language are needed, you can replace or hire additional developers almost instantly. This does not disrupt the project schedule.
This form of cooperation can also be an optimal solution for companies that want to quickly build a team from scratch or immediately supplement it with the skills necessary for a given phase, while facing challenges such as a “headcount freeze”—a freeze on permanent positions (due to restructuring, budget constraints, or hiring limits resulting from an adopted market strategy).
How is IT Outsourcing implemented?
Implementing these solutions is neither troublesome nor demanding from the client’s perspective. The process of collaborating with an agency does not have to be a massive undertaking, and outsourcing solutions function successfully even for single assignments. Every outsourcing project is different, and the solutions proposed by the Devire HR agency are always tailor-made. Typically, the implementation process looks as follows:
1. Client Briefing
A Devire representative discusses your needs and expectations. If you already know who you are looking for, we will review your requirements together (covering both hard technical skills and soft elements). If you need support in setting a contractor rate or, for example, creating a job description, a Devire representative can assist with that as well.
2. Starting the search
Immediately after confirming the expectations and the rate, our delivery team begins searching for contractors. The IT job market is incredibly competitive, which is why our team utilizes a range of methods and tools to reach candidates—our own network and database, a referral system, recruitment marketing activities, job board postings, and social media outreach.
3. Selection of contractors
We will present selected professional profiles of candidates who meet your expectations and budget requirements. After reviewing them and discussing them with your dedicated account manager at Devire, you can choose the individuals to whom we will extend a cooperation offer.
4. Completion of formalities
Wszelkie formalności związane z nawiązaniem współpracy z kontraktorami leżą po naszej stronie.All formalities related to establishing cooperation with the contractors are handled by us.
How much do IT Outsourcing services cost?
The cost of IT Contracting is, of course, one of the most important factors influencing the choice of a provider—discussion on this topic cannot take place in isolation from budget considerations. The starting point for any cost conversation is always defining who you are looking for. The primary cost consists of the compensation of the experts delegated to your project, plus the provider’s margin. If you want to verify how much IT experts earn, you can use our Salary Report. There you will find rates for both employment contracts and B2B contracts.
Billing models in IT Outsourcing
Billing models vary and depend primarily on the scale of your project. In practice, there are five most common options on the market:
Time & Material
Time & Material involves billing based on the hours worked by the contractors. This system is most often used for long-term assignments, such as application development or software system maintenance. It also works well in situations where it is difficult to estimate the scope and scale of activities in advance or when they may change rapidly. The Time & Material model exists in several variations; one of the most convenient from the client’s perspective is the so-called Closed Book.
In this case, you set a fixed rate per month or per hour of service for each contractor. The monthly cost is calculated based on the number of hours worked by each person. Every week or month, a timesheet must be approved by the client. Based on this, the agency settles with the contractors.
Within the agreed budget, the agency comprehensively handles sourcing and settling experts for your project. You won’t be surprised by any additional costs, as the agency is responsible for calculating all expenses so that you don’t have to worry about anything except the success of your project.
Fixed Price
The Fixed Price model involves transferring full responsibility to the agency—not only for recruitment and employee care but also for the entire process and the final result of a given IT project (e.g., building an app). In this model, the agency is responsible for delivering the final product according to a pre-defined SLA (Service Level Agreement). As a client, you receive a finished product within a set deadline and budget. You can read more about Fixed Price solutions on the Devire IT Services page.
Flat Fee
A Flat Fee is a lump-sum payment calculated based on the contract signed at the beginning of the collaboration. The invoice is issued monthly based on the approved scope of services. This settlement reduces administrative costs on the client side and enables effective expenditure forecasting.
Customized Solutions
It is worth noting that billing models are structured depending on project requirements and individual client needs. There are situations where it is more optimal to combine two billing models within a single project.
IT Contracting Service Models
Services can be provided in several different models. Explore the IT Contracting service models provided by Devire and choose the one that best suits your project. If you’re not sure which model is optimal—no problem—contact us to discuss your IT challenges.
IT Contracting with Devire
Outsourcing solutions offered by Devire are trusted by nearly a hundred companies. Every day, almost 500 Devire contractors and external employees carry out various projects for our clients across Poland. Let’s talk about your IT Contracting needs. Book a free consultation.
Is IT Contracting the right solution for your company?
Private and public sector companies managing complex IT projects are increasingly turning to external forms of employment known as IT contracting. IT contracting is a form of flexible cooperation with IT specialists for a set period to complete a specific project. In this model, you hire a specialist (body leasing) or an entire team of experts (team leasing), while outsourcing the entire process of sourcing, hiring, and administrative handling of these individuals to an IT contracting agency.
IT Contracting vs. Employment Contract from an employer’s perspective: A comparison
Research conducted in 2020 shows that nearly half of IT experts in Poland run a sole proprietorship. The differences between traditional employment based on an employment contract and a B2B contract involve much more than just tax issues. Each of these forms of cooperation has its strengths and weaknesses. Neither is better or worse than the other—they are simply different. We have prepared a short comparison:
| Feature | Employment Contract | B2B Contract |
| Regulations | Labor Code | Civil Code |
| Occupational medicine | Mandatory | Not applicable |
| Working hours | According to contract & Labor Code | Unspecified/flexible |
| Right to leave | According to Labor Code | None; option to include service breaks in the contract |
| Cost allocation | Headcount budget | External service costs |
| Workstation equipment | Provided by employer (per Labor Code) | Equipment outsourcing via provider possible |
The future of IT Contracting
The future of IT contracting is heading towards even greater flexibility. There is no doubt that work methods and models are changing. IT experts themselves seek the flexibility provided by B2B cooperation. Furthermore, the number of individuals and companies opting for this form of cooperation—especially in the IT industry—is growing year by year, and research by MBO Partners suggests this trend will continue. By 2027, more than half of the workforce will consist of independent workers and contractors. Current trends, combined with the shortage of IT specialists, have led to the dynamic development of the IT contracting market. To satisfy their recruitment needs, companies are competing for contractors on an international level. For more demanding projects, enterprises will rely on contracting to achieve maximum results in a short time.
IT Contracting FAQ – key questions regarding cooperation
Will IT talent outsourcing provide cost savings for your company? Yes, this service will provide your company with cost savings. This form of cooperation eliminates several overhead costs, including: HR and administrative support, office space, hardware/software, taxes, insurance, and many others.
Does Devire provide workstation equipment and tools for contractors? Devire can provide everything from work tools and technology to corporate payment cards—unless the client prefers to provide the contractor with company equipment.
What is the minimum project duration? The minimum duration is defined by the cooperation’s objectives and the efficiency of the assignment’s execution. One must also consider the time needed for the contractor’s onboarding and the estimated project timeline.
How quickly can a contractor start work? The start date is determined by the specialist’s level of experience and competence, the technology, and the team size. Generally, engaging a contractor for a new project takes between 2 weeks and a month.
Who manages the contractor’s working time? Management depends on the billing model. In the Fixed Price model, Devire takes full responsibility for recruitment and settling experts. In the Time & Material model, Devire is also responsible for the talent management process. However, under the Flat Fee model, the client decides the contractor’s working hours.
What is the service guarantee? In the event a contractor resigns from the project, Devire is obliged to provide a replacement, depending on the chosen billing method.
