Outstaffing
The model
Outstaff — a specialist in your team, formally employed by the agency. Outsourcing — a turnkey project. Outstaff costs more than hiring but skips HR bureaucracy.
Legal frames
Service agreement, not 'employment' — otherwise it requalifies as labor relations. Key clauses: rate, term, specialist replacement, IP, confidentiality.
Rates & margin
Agency margin is 15–30% on top of the specialist's salary. Transparency: the client may or may not know the specialist's cost — both models exist.
Risks
Client poaching — contract penalty (3–6 months salary). Specialist exit — 2–4 week replacement SLA. Vacation/sick leave — clarify who pays.
Quality control
Timesheets, code reviews, regular syncs with the client. An outstaffer without agency management is a 'sold and forgot' model that kills reputation.
Outstaff vs freelance
Outstaff — contract with an agency: replacement, accountability, stability. Freelance — cheaper but vanishing risk. For critical roles — outstaff.
About Outstaffing: model, rate, contracts
Outstaffing: model, rate, contracts — How to legally set up developer outstaffing: legal framework, risks, hourly pricing, contract clauses. For agencies: Agency tools. Use our tools without registration or installing software. All calculations happen in your browser — your data is never sent to a server.