Employee Leasing & Software Development - What are the Benefits?

Investing in custom software development is a smart move. Custom software is more secure and scalable to specific business needs. However, hiring software developers can be challenging. So too can as outsourcing development. There is a third option though. We’re talking, of course, about employee leasing.

What is Employee Leasing in Software Development?

Employee leasing is where skilled workers are recruited by professional employer organizations. Individuals and teams are then leased to third-party businesses in need of employees with specific skill sets.

You might only need to hire a senior software engineer for a limited amount of time. Alternatively, you might need to hire teams of developers who specialize in specific software development methodologies at short notice.

In every case, employee leasing allows you to hire the skilled individuals and teams you need fast.

Employee Leasing Benefits

Businesses looking to invest in custom software solutions are often unfamiliar with software development methodologies and basic hiring processes.

- Businesses don’t have the HR expertise necessary to assess developer qualifications or suitability for a role.

- Software engineers and IT professionals are in high-demand. This makes recruiting suitable professionals costly and time-consuming.

- Recruiting developers can mean also investing in new IT systems and office space.

In employee leasing, a professional employer organization takes care of vetting and recruiting top talent. When businesses are in need of people with specific skills, employer organizations connect businesses with individuals accordingly.

Is Employee Leasing the Same as Outsourcing?

Employee leasing is very similar to software outsourcing. However, there are several key differences.

- In software outsourcing, development is performed by third-party businesses and independent contractors. By comparison, leased professionals become temporary employees of your company.

- Businesses decide employee office hours, work schedules, and designate responsibilities, just like they would with regular staff.

- Outsourced software development often sees developers work on several different client projects at once. With employee leasing, businesses can rest assured that developers will focus solely on delivering their project.

The main difference between outsourcing and employee leasing is simple. In every case, leased employees become fully integrated with the businesses they work with. Because of this, a leased senior software engineer (or team) can gain business insights which are impossible to gain when outsourcing.

Employee Leasing Vs Outsourcing

Software outsourcing often seems like the most cost effective way to develop bespoke software solutions. However, even in agile software development, 34% of projects fail. Usually, this is due to poor planning, compounded by a lack of familiarity with key business processes.

It is possible to increase the likelihood of software outsourcing being successful, by working with a professional business analyst. However, the only way to guarantee success, is to engage with developers one-on-one. When this happens, final communication barriers are removed. More importantly, developers and IT professionals become more personally invested in the success of projects.