Outstaffing vs Outsourcing Differences and Aspects to Consider

Outstaffing vs Outsourcing Differences and Aspects to Consider

A dedicated offshore team consists of two or more high-quality developers involved in the development of a particular part of the project. Unlike outstaffing, a software outsourcing company manages the developers in the hired dedicated team. And, unlike the outsource cooperation model, a dedicated team is responsible for a certain part of the development process. When you outsource development to remote teams, you rely on their expertise, skills, and work ethics, which, after you start working, may not match your expectations.

outstaffing model

In this case, the employees come to the office of the company that hires them but are registered in the firm that provides outstaffing services. It depends on whether you want to control the project development process yourself or delegate it entirely to a third-party service provider . You are at the very beginning of your software development, trying to weigh all the pros and cons. Thus, instead of hiring an in-house team, which will also require additional resources, having your own HR department, an office, etc. To cut a long story short, gathering your own in-house team will be a time-consuming process.

Main Functions of an IT Outstaffing Company

Schedule a free introductory call with an advisor – a personal contact at the company. They’ll make sure the talent is matched perfectly to your needs. Feedback from former and current customers can tell you a lot about the level of quality a company provides. The demand for outsourcing services has increased in https://globalcloudteam.com/ recent years because of the effects of the pandemic. But the most successful firms were using this method even before the lockdown. The key thing when opting for this service is to find a skilled, qualified provider who is able to provide quality service without coming into contact with existing labor laws.

  • The American tech industry pioneered in trying out the new approach to doing business with the help of third-party vendors.
  • By understanding the key differences and benefits of each option, companies can make an informed decision that aligns with their specific goals and objectives.
  • The client manages the project processes in both cases, but in different ways, depending on the model.
  • Outsourcing is a popular practice for businesses that don’t need a permanent full-stack team as it’s costly and not always necessary.
  • Some people are gifted with either technical or managing skills.
  • With outsourcing service, the project development falls on the shoulders of the outsourcing agency.

You have full control over the quality and speed of your project, being provided with direct access to any team member. Clients often choose outstaffing when they already have their tech team but lack some experts, so a task can’t be handled internally. We build mobile and web apps for companies and enterprises from Western Europe and the USA, designing, developing and testing our products internally. Currently, we are focusing on healthcare, wellness, tourism, and entertainment industries, where we have a lot of successful cases.

The transition period for outstaffing companies – things to consider

With outstaffing, you can save a lot of money on management fees, making it a more affordable option for businesses. The main difference between outsourcing and outstaffing is that outsourcing refers to the entire project support, while outstaffing provides hiring and maintenance of experts. The task scope highly correlates with the type of problem you want to solve. So, if the lists of tasks go, it becomes clear it’s not a one-person job.

outstaffing model

IT outsourcing is a model which allows you to hire a complete dedicated team of programmers, designers, QA engineers, and project managers. That being said, outsourcing is a comprehensive model where a development team is hired to remotely deal with one of your development projects. Softengi has been featured in The Top 100 Global Outsourcing List seven times. The company connects ambitious businesses worldwide with top-tier developers.

When is it better to choose outstaffing for a software development project?

When you choose software development outstaffing, you should also know about its flipsides. When hiring an IT professional, they spend less time learning how to make their work compatible with your business as they’re already familiar with your processes. This is why you will maintain a high speed of delivery and will take the product to market faster. Outsourcing is a popular practice for businesses that don’t need a permanent full-stack team as it’s costly and not always necessary. And while this approach has its advantages, you should also be aware of its pitfalls.

Geniusee Charity Fund Our work is global, but Geniusee’s homeland is Ukraine. Take a look at how we kept our business on and adhered to all commitments. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. Remote professionals might need help creating a friendly atmosphere within the team without seeing each other. Due to their extensive outreach, recruiting agencies find suitable candidates within several weeks. An agency clarifies the contract details with both sides to ensure their expectations are aligned.

What Would Be Best for Your Project?

The outstaffing model requires active involvement of both parties. The client has to actively manage their remote dedicated team, meanwhile, the outstaffing agency concentrates on providing a comfortable environment for work and growth. The outstaffing vendor facilitates the communication between the sides by introducing HR or account managers, lawyers, accountants, and other relevant specialists. At this point, a smooth and quick onboarding process is key to success. An HR manager has to make sure that the newly-hired engineer understands their role, has all the accesses, and can use all the communication channels.

outstaffing model

With the skills to handle a remote developer, managing quality web developers is a plus. But if you’ve never been in the shoes of a project manager, then it can be viewed as a disadvantage. First, companies realize the need for the services of a couple of developers, or maybe a whole team, for your software projects. If what is outstaffing a company has the required roles, tools, and talent, Outstaffing is an excellent option for getting remote help. Otherwise, the best choice may be hiring some other form of services Outsourcing. This is a crucial difference between models because the contracting company may not want or need to focus on managerial tasks.

Outsourcing Downsides

Outstaffing is a quick route to landing such developers without upskilling their internal team or going through a lengthy recruitment process. Moreover, certain IT specialists are hard to find in some countries. Outsourcing allows companies to be very flexible when fulfilling their software development needs. Besides access to a global pool of talented developers, they delegate the entire software development lifecycle to third-party managed IT, teams. The hindsight is – companies have little control over how the outsourced team operates.

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