So, it finally happened. Your company keeps growing, and it’s time to supplement its growth with the perfect competitive talent. You’ve set out to acquire the fintech professional your fintech business needs, you got in touch with rockstar recruitment consultants (like Evotym)....

…and as your company continues to grow, you’ll inevitably face a crucial question: What is the best way to scale your workforce to meet the evolving demands of your business? Whether you’re a fintech startup or an established financial services company, finding the right talent is essential to staying competitive. But how do you choose between outsourcing, outstaffing, and traditional recruitment?

In this article, we’ll break down each hiring model so you can make an informed decision that best suits your company's unique needs. By the end, you'll have a clear understanding of which model aligns with your goals, the latest fintech trends, and your current project demands.

‍

Outsourcing, Outstaffing, and Traditional Recruitment: Key Benefits and Applications

Choosing the Right Recruitment Model

Deciding between outsourcing, outstaffing, and traditional recruitment can transform how your business handles staffing and project management. Here’s a clear breakdown to guide your choice.

Outsourcing: Comprehensive Solutions

Outsourcing involves delegating entire projects or product development to an external team of experts. Here’s why this model might suit your business:

• Complete Project Management: The outsourcing company handles everything from gathering requirements to managing the team and delivering the final product.
• Ideal for Focus: It allows your business to concentrate on core operations while the external team manages project details.
• Cost Consideration: Typically more expensive due to the full-scale project management involved.

Best For: Companies seeking to offload comprehensive projects and focus on their core business areas.

Outstaffing: Flexible and Scalable

Outstaffing offers a flexible way to work with IT or technical professionals via a third-party agency. Key benefits include:

• Specialized Skills: Access niche skills and expertise on a flexible basis.
• Scalability: Easily adjust team size according to project needs with contracts ranging from 3 to 12 months.
• Cost-Effective: Ideal for projects with fluctuating demands, without long-term commitments.

Best For: Businesses needing to scale teams quickly and manage specialist roles without long-term obligations.

Traditional Recruitment: Building Long-Term Teams

Traditional recruitment involves hiring employees directly for permanent roles within your company. Here’s what to expect:

• Employee Loyalty: Invests in long-term team building and company culture.
• Cultural Fit: Better alignment with company values and vision.
• Resource Intensive: Requires significant time and resources but can lead to stronger employee retention.

Best For: Organizations focused on long-term growth and building a cohesive team aligned with company values.

Summary: Making the Right Choice

Understanding these recruitment models helps businesses align their hiring strategies with strategic goals:

• Outsourcing: Best for complete project management and focus on core operations.
• Outstaffing: Ideal for flexible, scalable staffing solutions.
• Traditional Recruitment: Suitable for building long-term, committed teams.

Each model has its advantages depending on your specific needs and objectives. By evaluating your business requirements and project goals, you can choose the most effective approach to enhance operational efficiency and drive long-term success.

Need guidance on selecting the right recruitment model for your fintech business? Dive into each option to find the perfect fit for your needs and start optimizing your hiring strategy today!

Understanding Outsourcing: Definition, Benefits, and Ideal Scenarios

What is Outsourcing?

Outsourcing is a strategic business approach where fintech companies contract external firms to manage specific functions, tasks, or projects rather than handling them internally. This model, often known for its potential higher costs, offers notable advantages, particularly in terms of specialized expertise and operational efficiency, and is one of the growing industry trends. By opting for outsourcing, businesses can access a complete team of professionals without the need for permanent, full-time staff – we’re in 2024, after all!

A significant benefit of outsourcing is that it provides a self-sufficient team from the external provider, which takes full responsibility for the current project's execution. This arrangement is particularly valuable for complex or high-stakes projects requiring niche IT skills that the company does not have in-house. The outsourced team manages every aspect of the project—from initial planning and development to execution and post-launch reports. This ensures high-quality outcomes and effective project management, while allowing the client company to focus on core fintech activities.

Outsourcing is ideal for projects where minimal oversight and rich technology knowledge is required from the client. For example, if a company is launching a top new digital product or software application, outsourcing allows it to engage a specialized team with the expertise needed for successful development and deployment. This external team handles all the technical details, including coding, testing, and implementation, ensuring that the fintech project progresses smoothly and meets all objectives.

Moreover, outsourcing can help businesses achieve future cost savings by reducing the need for internal resources and infrastructure. Companies can benefit from the external team's specialized skills and knowledge of latest trends, often resulting in faster project completion and better overall results. By leveraging outsourcing, organizations can focus their internal resources on strategic priorities and other current business functions, while enjoying the expertise and efficiency provided by their external partners.

How to Use Outsourcing in the Fintech Market: Case Studies

Outsourcing is particularly advantageous in scenarios where a business requires top IT  expertise or a dedicated team for a specific project, but lacks the internal resources or capability to handle it effectively. This approach to finding professionals is often used in several key situations.

For instance, consider a fintech startup developing a new product. Startups frequently face resource constraints and may lack the in-house expertise or software needed to handle complex product development tasks. By outsourcing and not outstaffing the entire development process, the startup can engage a team of experts who specialize in product design, engineering, and testing. Outsourcing allows the startup to focus on other crucial areas of its business, such as market strategy, customer acquisition, and securing funding. Forgoing outstaffing enables the startup to leverage specialized skills and manage this particular project efficiently, while also conserving internal resources.

Another example is a business launching a new digital platform. Developing and implementing a digital platform requires a range of technical skills, including coding, design, testing, and deployment, which the company might not have. For such comprehensive projects, outsourcing is ideal as it provides access to a dedicated team with the specific expertise needed to manage the entire business process. The small external team handles all aspects of the platform’s development, ensuring that it meets technical requirements and deadlines. Meanwhile, the company can concentrate on strategic elements like user experience, marketing, and growth strategies.

In both examples, outsourcing with the help of recruitment consultants provides a strategic solution to manage projects that are resource-intensive or require specialized knowledge. It offers a way to achieve high-quality results without the need for recruiting or expanding internal teams. By outsourcing, businesses can streamline operations, reduce costs, and focus on their core competencies, while leveraging the expertise and efficiency of external consulting and partners to drive project success.

‍

Outstaffing Explained: Understanding the Staffing Model for Optimal Fintech & IT Teams

What is Outstaffing?

Outstaffing is a flexible staffing model that provides a cost-effective alternative to traditional outsourcing – which can be a great asset in the fintech industry. In outstaffing, companies contract employees through an external agency like Evotym, known as an outstaffing provider, while retaining direct control over their daily tasks, technology used and project responsibilities. The outstaffing provider acts as the legal employer, handling administrative functions such as salary payments, benefits, and compliance with employment laws. Note the difference from outsourcing, where the external firm takes full responsibility for a project or function their professionals work on.

One of the primary benefits of outstaffing is the cost-effectiveness of contracting your next fintech professional. Companies can access specialized talent and expertise without incurring the overhead costs associated with permanent hires or outsourcing. This model is particularly advantageous for businesses seeking to optimize their budget while still obtaining high-quality professional skills.

Flexibility is another major advantage of outstaffing, so if you have a startup, pay attention! It allows businesses to scale their teams up or down quickly based on team needs, changing business demands or trajectory shifts from project development. This flexibility is ideal for businesses with variable workloads or organizations working on short-term projects. For example, if a company is developing a new product or launching a campaign, it can outstaff a team of experts to handle the workload and adjust the business team size as required.

In an outstaffing arrangement, team members integrate into the client’s in-house team, working directly with existing employees and contributing to the company’s objectives. This integration ensures that outstaffed professionals are involved in daily operations and project workflows, providing the same level of collaboration and engagement as internal staff or consultants.

Overall, recruiting via outstaffing offers an efficient solution for businesses looking to enhance their workforce with specialized skills and operational flexibility, while managing costs and maintaining control over their projects. This model supports businesses in achieving their goals effectively and adapting to changing needs without the long-term commitment of traditional recruitment services.

When to Use Outstaffing for Candidate Search

Outstaffing is highly effective in situations where businesses need to quickly adapt their workforce or access specialized skills without the long-term commitment of traditional recruitment – all while still finding a great candidate for the job. This flexible staffing model provides both cost-efficiency and adaptability, making it an excellent solution for various business models.

For instance, a white-label payment gateway company, Business A, with a core internal team might use outstaffing to add 1-2 great IT candidates each month. This strategy allows the company to access specialized IT talent and good technical expertise as needed, facilitating business growth and managing project demands efficiently. By leveraging outstaffing, Business A can enhance its technical capabilities and stay competitive in the market while allowing the core team to focus on the main product and the additional experts to scale it and add features to it ?

Another example is Company B, who needs to rapidly scale its development team for a short-term job. Suppose they are currently hard at work on the launch of a new digital product and require additional software developers to meet tight deadlines while understanding the qualities of their product well. Outstaffing offers the flexibility to bring in a dedicated team of excellent developers with the specific technical skills required for the project. This model provides the advantage of adjusting team size based on the job’s phases — scaling up during high-demand periods and scaling down once the project is completed.

In both scenarios, outstaffing allows companies to efficiently manage their workforce needs, integrate external candidates seamlessly with internal teams, and ensure high-quality project outcomes. It supports businesses in achieving their goals by providing access to specialized skills and characteristics, enhancing operational flexibility, and maintaining control over project execution — all while managing costs effectively and avoiding the overhead associated with permanent hiring.

Recruitment 101: Understanding the Staffing Model for Building Strong Fintech Teams

What is Traditional Recruitment?

Traditional recruitment is a typical industry hiring process focused on filling permanent positions within a company. This staffing model is ideal for fintech organizations that seek to build long-term teams and develop a strong company culture. Unlike temporary or contract staffing solutions, traditional recruitment aims to identify top candidates who not only have the necessary qualifications but also align with the company’s core values and long-term objectives.

One of the key benefits of traditional recruitment is its emphasis on retaining top talent. By hiring employees for permanent positions, companies create stability and continuity within their workforce. This is especially crucial for fintech positions involving significant training and development investments. Long-term employees are more likely to stay with the company, contributing to sustained performance and market success over time.

Traditional recruitment is also essential for roles that require access to sensitive information or perform critical business functions – which is pretty common for fintech businesses. For example, positions in finance, legal, security or executive management often involve handling confidential data or making strategic decisions that impact the company's future. Fintech professionals in these roles need an in-depth understanding of the company's operations, culture, and strategic goals. By recruiting for permanent positions instead of outsourcing or outstaffing, companies ensure that these individuals are well-integrated into the organization and committed to its long-term success.

Additionally, traditional recruitment supports the development of a strong business culture. Permanent employees are more likely to engage deeply with the company’s mission and values, contributing to a cohesive work environment – which is so important, particularly if you are a startup with few personnel to spare. This alignment fosters loyalty, enhances overall job satisfaction, and leads to lower employee turnover rates and a more stable workforce, no matter how small your team may be.

In summary, traditional recruitment is an optimal approach for businesses aiming to build enduring teams and manage sensitive roles effectively. It provides a framework for hiring employees who will grow with the company, contribute to its culture, and play a crucial role in the long-term success of its services.
‍

The Good Time to Choose Traditional Recruitment

Traditional recruitment is particularly advantageous in situations where companies need to fill long-term positions and ensure great candidates for the job. This staffing model is essential for roles that require deep company knowledge, alignment with organizational values, and a long-term commitment to job goals.

For instance, banks and crypto-processing companies often use traditional recruitment to hire C-Level candidates or sales professionals for permanent roles. These positions involve managing sensitive information, making strategic decisions, and leading critical business functions. The nature of these roles necessitates individuals who are not only highly skilled but also greatly integrated into the company’s culture and long-term vision. Traditional recruitment provides a structured approach to finding and securing top candidates who will contribute to the company's success over the long term.

Additionally, if you are transitioning from outstaffing to permanent employment, traditional recruitment is the answer. For example a company might start by contracting an outstaffed QA engineering candidate for immediate project needs. If the QA engineer demonstrates good performance and aligns well with the company culture, they can then buy out the candidate for a full-time position. This process allows businesses to evaluate the candidate’s fit within the organization and their potential for long-term contributions before committing to permanent employment.

In both scenarios, traditional recruitment ensures that businesses can secure excellent employees who are well-suited for sensitive responsibilities and critical roles. It supports the development of a stable workforce, fosters a strong company culture, and aligns talent with the company’s strategic objectives. This approach makes for a solid foundation for long-term growth and organizational success.

How to Choose the Right Model Between Outstaffing, Outsourcing and Traditional Recruitment

Determine the Qualities of the Project

What is the nature of your project? This can help you select the most suitable staffing model. For long-term projects requiring consistent involvement and deep company knowledge, traditional recruitment makes the best strategy. This staffing solution offer stability and ensure that candidates are well-integrated into your company culture. If your project is short-term and needs flexibility in team size or specialized skills, outstaffing from a pool of job applicants is more appropriate. Outstaffing allows you to scale your fintech team up or down rapidly based on project demands. outsourcing - for IT projects that you just want to get done withoug big involvement from your side but with a bit more investment. Additionally, decide if you need an independent team that operates autonomously or integrated team members who work closely with your existing staff for seamless collaboration, effectiveness and thorough understanding of the latest trends.

Weigh the Costs Against Benefits in Your Industry

Compare the costs and benefits of each staffing model to determine the best fit for your fintech company’s needs. Outsourcing often involves higher upfront costs but provides specialized expertise and comprehensive project management, reducing the current need for extensive internal resources. Outstaffing is a more cost-effective approach, allowing you to adjust team size as needed while efficiently managing operational expenses for the services. Traditional recruitment requires a significant long-term commitment but ensures stability and alignment with your company's values, potentially enhancing employee loyalty and performance. Evaluate how each model aligns with your budget and project needs to select the one that delivers the best value and meets your business objectives – and if you need help understanding the latest fintech recruitment trends, check out our news and updates.

Decide How Much Control is Needed

Determine how much control you need over the current team and the project’s outcomes. If maintaining direct oversight and ensuring seamless integration with your company’s processes, culture, and market standards are crucial, outstaffing or traditional recruitment are the best options. These models offer detailed management and ensure team members align closely with your fintech company's objectives, values, and workflows. Conversely, if you prefer a team that operates with greater autonomy and requires minimal supervision, why not consider outsourcing? Outsourcing provides flexibility, allowing external professional teams to work independently while you focus on strategic goals and effective project management, achieving optimal results.

Effective Staffing Solutions: How Outstaffing and Recruitment Models Drive Fintech Success

Cultural Fit for Crypto Processing: The Case of 1TN

For companies like 1TN, which place a high premium on company culture and team fit, traditional recruitment proved to be the ideal staffing model, as opposed to outstaffing and outsourcing. 1TN's emphasis on finding professionals who are both adaptable and very experienced highlights the critical need for a recruitment strategy that aligns with their cultural values and long-term business objectives – which outsourcing and outstaffing would not have accomplished. According to their testimonial, Evotym's traditional recruitment approach effectively met these business needs by placing top-tier talent in crucial roles.

This method ensured that new hires were not only highly skilled but also seamlessly integrated into 1TN’s existing team and management needs, thereby maintaining a positive work environment and fostering long-term success. The comprehensive vetting process involved in traditional recruitment allowed 1TN to find candidates who not only possessed the technical expertise but also fit the checklist of the company’s core values. Stability and cultural cohesion were the priority, and Evotym made it happen! This model was perfect for 1TN as it supported their focus on long-term business development and alignment with their company culture, providing a solid foundation for sustained growth.

From Small to Strong with Outstaffing: The Case of Spell

In contrast, Spell’s rapid expansion necessitated a different approach, making outstaffing the most suitable solution. Spell needed to scale their team quickly while maintaining high standards in developer quality, which required a staffing model that offered both flexibility and efficiency. Selecting outstaffing with our consultants allowed Spell to seamlessly integrate skilled remote developers into their team, addressing their immediate and evolving project needs without the delays associated with traditional hiring processes. As highlighted in Spell’s testimonial, Evotym’s outstaffing services assisted in finding exceptional talent that aligned perfectly with their technical requirements and rapid growth objectives.

Outstaffing services were ideal for Spell – they enabled them to adjust their team size dynamically, ensuring they had the right expertise at the right time. Outstaffing offered the flexibility to scale up or down based on project demands, all while retaining good candidates and supporting Spell’s ambitious growth plans. This approach proved effective in meeting their evolving needs and finding the best people for the job.

Both cases clearly demonstrate how selecting the appropriate staffing model based on your needs and qualities — whether through traditional recruitment for cultural fit or outstaffing for scalability — can profoundly impact a company’s ability to achieve its strategic goals and drive success.

Final Thoughts: Choosing the Best Staffing Model for Your Candidate Needs

To summarize, selecting the right staffing model hinges on your company’s unique candidate needs and project demands. Traditional recruitment is great for long-term positions where deep integration into the company’s culture and alignment with company values are crucial. This approach ensures that new hires are committed to long-term success and share your company’s values, making it perfect for organizations like 1TN that emphasize personal qualities. Outstaffing is more suitable for companies needing rapid scaling and specialized skills in candidates, as it allows for quick adjustments in team size and seamless integration of remote talent. This flexibility is evident in Spell’s efficient expansion of its development team with great remote professionals. Finally, outsourcing makes for an ideal solution for projects requiring specialized expertise without the commitment of long-term contracts.

Final advice: when choosing a staffing model, thoroughly evaluate your company’s specific needs, candidate scope, and budget. Consider factors such as cultural qualities, team flexibility, and the level of control you require over project outcomes. Traditional recruitment is suited for companies seeking stability and alignment within candidates, while outstaffing offers the scalability and specialized skills necessary for dynamic projects. Outsourcing is excellent for projects that need expert knowledge without long-term commitments. By aligning your staffing approach with your strategic goals and operational requirements, you can find out what model is best to enhance your business objectives and drive successful project outcomes.

Read all the way through? Get 3 professional profiles free!

Choosing the right staffing model — whether traditional recruitment, outstaffing, or outsourcing — can significantly impact your fintech business's success. To help you select the most effective staffing solution for your business needs, schedule a personalized consultation with our experts. We’ll evaluate your project requirements, budget, and long-term goals to recommend the optimal approach for your situation, whether you are a startup, a scaleup or beyond. As a special incentive, we’re offering 3 free candidate profiles tailored to your business’ specifications. These pre-vetted profiles will give you a small glimpse into top talent and streamline your hiring process, making it easier to find the right fit for your team. Contact us today to start optimizing your staffing strategy and make informed hiring decisions that drive your business forward!

‍

‍