Outsourcing vs Outstaffing: What’s the Difference, Advantages & Disadvantages

Alongside the peace of mind, lower costs, and full control, outstaffing has a few drawbacks to consider. 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 company/vendor — a business dealing with partial or full-cycle product development remotely.

outstaffing definition

You achieve your goals by using the services of employed companies specialized in transporting passengers for hire. Outsourcing is a more comprehensive way to offer IT services compared to outstaffing. The company signs a contract of work, not one for providing a particular staff member. Outstaffing is a type of offshore web development where a customer hires a contractor from a software outsourcing company to carry out development tasks. Any company needs good specialists, but not everyone has all the necessary capabilities and resources to recruit and maintain a vast staff. That is why many companies use outstaffing and outsourcing services.

What is IT outstaffing?

These models play a significant role in organization development and the individual processes’ execution. In the case of outstaffing, it can be a contract for a term necessary for the performance of certain works. IT outstaffing reduces the number of staff, which will reduce HR-managers responsibilities. Moving business/services overseasresults in lower costs because of the more favorable economic situation. In this model, we develop a software product for you from start to finish.

  • More importantly, you’ll learn how to choose a suitable outstaffing partner for your company.
  • Outsourcing, it’s usually a project manager of the hired team who directs and controls the full scope of work.
  • With outsourcing, team management happens on the side of the offshore web development agency.
  • Review the qualifications of prospective outstaffing companies and choose one that you feel confident can meet your needs.
  • It’s something like HR agency meets Outsourcing company.
  • Software development projects, as well as other products and services from the IT industry, are constantly improving.
  • We build mobile and web apps for companies and enterprises from Western Europe and the USA, designing, developing and testing our products internally.

You can operate in FinTech, Real Estate, Entertainment, Ecommerce, FoodTech, or any other niche. Your project can be relatively small and completed within a month, or, vice versa, outstaffing model large-scale, which will constantly develop. In case of unsuccessful cooperation or certain challenges, you will simply no longer work with this firm or freelance developer.

What is an outsourcing service?

But basically, any type of signed agreement will work fine with an experienced and credible employee. Finding an outstaffing or outsourcing company isn’t difficult today. Above all, you should pay attention to simple Internet searches. Many great companies strive to offer advertisements for their key services to potential customers. A good option is to look at the specialized hiring platforms dedicated to IT. Many individuals and even firms provide various clients an opportunity to get people for remote employment.

In this regard, it’s much cheaper and more efficient to hire contractors from Eastern Europe or Asia, for example. The choice of model depends on the tasks and requests of your company. This article will help you understand the pros and cons of outsourcing vs. outstaffing and identify the main goals and capabilities of these two models. More often we can meet the IT outsourcing, that is, outsourcing of information technologies, work on the maintenance of software products. It is obvious, that it’s connected with the reducing costs for development work.

How to Find an Outstaffing or Outsourcing Company?

Clutch is a great platform for checking out legit reviews about outstaff companies globally. Visiting a vendor’s website will also give you an impression of their https://globalcloudteam.com/ achievements, years in the business, mission, expertise, etc. Compare companies that you’ve found and make a decision about which one you’ll be contacting.

Together with the client’s in-house developers, they’ve been able to create a complex Smart Site Safety Solution that reduced the risk of on-site accidents by 70%. The client is usually responsible for many aspects of the project in outstaffing model. Finally, outstaffing is less risky, because if the hired specialist is not qualified enough – you will be able to easily replace it. At the same time, if your outsourced partner can’t reach your expectations, you will have to stop the whole development process until you will find another team for replacement.

“Classic” Outstaffing

This allows a company to ‘rent’ basically any super-specialised software developer, depending on what this specific project needs. The Software development and publishing industry has grown to $442.5bn in 2022. The number is expected to keep growing as companies, developers, and individuals vie for their share of the billion-dollar industry with various types of software designs. But to get a cut of this growth, you must know the current landscape regarding the type of software development currently available. In this article, we’ll define software development and cover eleven main types of software development and some examples of development software. Now that you know the difference between outsourcing and outstaffing, how can you decide which is best for your business?

outstaffing definition

This way, you’ll start product development cycle earlier and launch the solution faster. Finally, team extension and outsourcing proposals help to significantly decrease the final price of the product development. One of the major aspects, which impact the cost saving of development, is the “price tags” of developers. Truly, the difference between the salary in various countries is visible to the naked eye.

Business driven. People focused.

Miscommunication can easily lead to delays and frustration on both sides. This is why it’s so important to choose a company that has good communication skills and established processes in place to minimize misunderstandings. Every project and business situation is different, but there are a few common cases when it’s better to outsource and when outstaffing would be more beneficial. Communication is key when a part of your team works remotely. Unfortunately, it’s not always possible to maintain friction-free communication and get the team on the same page.