Outstaffing vs Outsourcing Which One to Choose For Your Business?

When outstaffing, you completely control their work; they do not receive assignments from the outstaffing company but from your company’s manager. Therefore, you know for sure that your project is given their full attention. You can still influence the process through the outstaffing vs outsourcing project administrator. Outsourcing also refers to transferring your work to companies offshore, while outstaffing usually means getting local professionals, therefore avoiding communication barriers. The previous section was all about the cons and pros of outsourcing.

outstaffing vs outsourcing

Our own company, YouTeam, could be a time-saver in this situation. We operate as a marketplace for startups on one side and development companies on the other. Only those dev shops that passed through our high criteria and have proven success rates appear in our talent pool. We did it to ensure that we can find the best talent for our clients in the shortest time possible. But there are many other advantages for companies that choose to hire through YouTeam.

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It becomes evident that even though outsourcing and outstaffing are based on the same principles, the two models have key differences. For this reason, it is important to explore each model’s pros and cons. By doing so, you will be able to identify which model is the best for your company. That being said, outstaffing is a model that can help a company temporarily augment its development team. Even though your company will be the one that manages the hired development team or individual, the developer’s payroll is handled by the outstaffing company you partner with. Now once you know the difference, let’s discuss a way to apply this difference to your business.

Apart from software development, a company can turn to outsource to help with their manufacturing, accounting, software development, testing, support or call center, and other digital activities. Outstaffing can be a great aid for a company that doesn’t have enough resources to support in-house employees. Flexible and under your control, outstaffed workers will bring benefits to your company. But before scouting for outstaffing service providers, learn about this model’s pros and cons. Outsourcing helps companies that don’t have money, time or a reason to assemble their own in-house team of developers. Such services can be good for both short-term and prolonged cooperation, yielding a quality product.

Task Scope

Basically, where Outsourcing refers to the complexities and overall support of a whole project, Outstaffing is about hiring individuals. Join technology and business leaders in subscribing to Forte Group’s technology newsletter. Showing a staggering 37% annual growth, artificial intelligence is an investment opportunity companies can’t ignore. The implementation of AI into business to harness the potential of data and cloud services is gaining traction like nothing else today.

outstaffing vs outsourcing

Staffing providers should anticipate customer needs, including the number of available professionals or developer teams, and move gradually to fulfill the requirement with matching IT personnel. The core objective is to enhance and ensure efficient project running for CIOs or managers by providing experienced professionals on time. While outsourcing and outstaffing have a lot in common, these models are very different. The confusion arises from the fact that both models offer a workforce for your business. The major difference is that the outsourcing team is more independent while the outstaffing team depends on your management skills.

The Difference Between Outstaffing vs Outsourcing

Now we’re ready to explain the difference between software development outsourcing vs staff augmentation in more detail. Once you sign an NDA, the rights for the code written become yours. However, during the building phase, you won’t have much access to the code.

outstaffing vs outsourcing

Check out the article to learn more about each of these models, and figure out which one to choose. The article is dedicated to explaining all the details related to both mentioned IT models. It is possible to quickly hire the required staff for a specific project or conceive to enter new markets in other countries with no need to register a legal entity there.

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In some cases, it is unreasonable to hire more specialists to complete a project. It may be too expensive, even wasteful in terms of business resources. I enjoyed working in several companies, including startups, small private IT development Shops, and large enterprises with tens of thousands of people on board. We also wrote about a few related subjects like outsourcing failures, best countries for outsourcing, outsourcing to Serbia, in-house development vs outsourcing and outsourcing to India.

  • If you require a one-off app development, you pay less for outsourcing.
  • Depending on your company’s needs, you can choose one or both of the models for upcoming programming projects.
  • We’ll rarely send you articles to keep you updated with the latest software development trends.
  • Once an outstaffed team member arrives at the team, the client decides the scope of work to be done, assigning and following up on tasks.
  • Hiring benefits your company since you can hand-pick quality developers.
  • This company will be responsible for all, or almost all time of the outstaffed team.
  • Outstaffing involves fewer qualified people and, therefore, fewer cost.

IT services are one of the most popular to outsource, along with accounting and digital marketing. So, the main difference is that outsourcing refers to the whole project support, while outstaffing provides hiring and maintenance of individuals. Over 7 years of work we’ve helped over 150 companies to build successful mobile and web apps.

Places to Find Offshore Development

Management costs are cheaper than outsourcing because customers manage the assigned teams themselves. There is a prevalent misperception that outsourced IT teams lack the necessary familiarity with your IT infrastructure as compared to in-house professionals. Make sure your outsource team is well-versed in your business and its infrastructure before onboarding to guarantee a smooth transition. At SCAND you can hire mobile app developers with exceptional experience in native, hybrid, and cross-platform app development. Outstaffing involves fewer qualified people and, therefore, fewer cost.

This can help with productivity and communication among employees while also providing better customer service since everyone is working together towards a common goal. Under this model, you pay for your outstaff team member’s salary, buy their computer equipment, pay bonuses and overtime, and cost benefits. You don’t do this directly, as the outstaff team member is still an employee of your IT outstaffing provider. This allows a client to “employ” a dedicated IT outstaff team member.

In-house expertise

In this arrangement, the outsourced developers continue to work at their workplaces but are fully managed by the client company. More importantly, you’ll learn how to choose a suitable outstaffing and outsourcing partner for your company. If you have extra resources to use and want the job done without being involved, then your to-go option is an outsourcing model. You will be involved more in the development of the project since outstaffing companies do not provide clients with a management team. Based on this information, it should be easier to make a decision. Which one you need therefore depends on whether you have an in-house team and what kind of expertise you require.


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