Hiring a distant full-time or part-time specialist who will operate as a temporary member of your in-house team is what outstaffing entails. Depending on your project requirements, this approach allows you to engage any software development specialist or a group of them. Outstaffing, on the other hand, necessitates project management on your end. For example, Slack for communication and Jira for task tracking. As a universal language of communication between experts located in different countries or even continents, English is usually preferred. The outstaffing model implies the customer company taking care of management.
This remote software development team can be managed either by your in-house people or you can have remote managers as well. Remote developers employed by another company help you with the tasks you don’t have the capacity to do with your in-house team, they are not the same. Recognizing the differences between outsourcing and outstaffing models can help you reveal the best approach for your projects. Which one you need therefore depends on whether you have an in-house team and what kind of expertise you require. If you are not 100% sure about your ability to outsource or outstaff, Voypost can help you choose and build a dream team for your business needs specifically.
What is an Outsourcing Model & How Does it Work?
Outstaffing software development service is compared to freelancing. The reason is that, within the outstaffing model, hired developers are fully managed by a client as they would be managed as a staff. The client basically hires outstaff developers for the needed time. But if you’re a software development company and you want to build a food ordering app, it might be better to outstaff if you simply want more hands on deck. You already have the infrastructure and a team, so you would only hire according to your needs.
Perhaps the most obvious benefit of outstaffing is that it can save your company money. When you outsource a task, you only pay for the work that is done. You don’t have to pay for overhead expenses like office space, equipment what is outstaffing and utilities. This can make outstaffing an attractive option for companies that are tight on cash. In this situation, the solution may be the temporary placement of the hired specialists on the client’s territory.
How to work with an IT company from Ukraine?
You will lose valuable time, and the technical debt you owe the customer will grow. In this situation, the optimal course of action is to use the services of outstaff companies. They can immediately offer developers with rich experience and in-depth expertise in various fields. As mentioned above, in both outsourcing and outstaffing IT models, a company attracts a team or individual to work on a specific project/task. Also, in both cases, those developers are working on the project remotely. Still, the main difference between those two concerns the project’s management.
On the flip side, outstaffing is when a company extends its development team by adding one or several engineers. So, the scope of the project is managed by the CTO or the project manager of the client company and not the development 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.
Cost
Find out what their previous clients say about the services. Clutch allows clients to leave comprehensive reviews and experiences of outstaffing providers. Compare them and choose those that provide consistently good services. We solve all questions concerning the need to withdraw IT specialists per staff. Our team expands and maintains developers on hand to respond quickly to customer requests and begin projects immediately. We’ve worked with clients from various industries, helping their business scale fast.
- The major difference is that the outsourcing team is more independent while the outstaffing team depends on your management skills.
- Although an outstaffing IT model is comparable to outsourcing, engaging talent through outstaffing has different characteristics.
- You must have an in-house development team to engage in outstaffing.
- We will analyze the details of outsourcing vs outstaffing and explain all the terms of offshore development.
An outsourcing company will be fully accountable for work results and quality. They decide on the framework and team composition, controlling the development process from A to Z. It means that you’ll be fully entrusting the project’s success to a third-party service provider from A to Z.
When to Choose an Outstaffing Model in Software Development
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. Take note that, much as with the outsource team, the workers you outstaff are officially employed by a third-party. The company providing the services pays for salaries, taxes, compensation, insurance, software licenses and equipment. There are many ways in which you can find and hire outstaff or outsource cooperators.
This misconception is widespread because both methods imply the process where customers entrust certain work to remote employees. There is a wider, more interchangeable selection of resources available. When you outsource your job, it’s easier for your vendor to send in a variety of professionals for just an hour or two. When you outsource, the vendors you hire are bound to your company’s work in the same way that a full-time or part-time employee is, so you must stick to the resources you have. For many clients, the flexibility that outsourcing provides is a major selling feature. They organize resources among all IT professionals working on your project, from your in-house team to their outsourced workforce.
Data leakage risk
Companies mostly outsource web development services, accounting, and marketing. It is believed that software outsourcing boosts small businesses’ efficiency and expertise. We will analyze the details of outsourcing vs outstaffing and explain all the terms of offshore development. You will also learn how to choose the best offshore development model to help with your projects. If you choose an outstaffing model, be prepared to take on more responsibility.
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