Outstaffing vs Outsourcing: Key Points for IT Industry

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. Run background checks to prevent hiring an IT outstaffing company that doesn’t align with your requirements. Clutch allows clients to leave comprehensive reviews and experiences of outstaffing providers.

outstaffing vs outsourcing

So, working through an outstaffing model requires a better understanding of the tech side of the project on your side, as you are the one managing the outstaffed professionals. You can do so on search engines, business forums, or browsing a professional platform like Clutch. Take note of their locations, years in service, and areas of expertise. Compile a list of outstaffing companies that fulfill your requirements.

What Would Be Best for Your Project?

Being responsible for the management, you are also responsible for the whole planning process. Quite often, those who have never evaluated and planned their work can’t correctly establish a software building process. While outstaffing your work can effectively solve your business goals, it has its own risks and drawbacks. You can also replace them and end up your cooperation when their work is done. Hiring the best outstaff developers is basically the same as hiring a new staff to work for you, except for lower rates and savings on recruiting expenses.

Not enough requirements or the lack of such can cause delays and errors during production. So, be prepared to understand what you want and share it with the team. Now that you know the difference between outsourcing and outstaffing, how can you decide which is best for your business? While outstaffing lets staff work with existing resources on project delivery, this also means the success of a project is purely dependent on that internal team.

Outstaffing Pros:

With outsourcing, enhancing the quality is a vendor’s responsibility. With outsourcing, a client company hires a whole development team and a manager who is responsible for running the project. Of course, the customer is still in charge, meaning they are giving all the guidelines and goals in advance. An outsourced team can handle tasks like app creation, website development, software development, and more.

  • The client basically hires outstaff developers for the needed time.
  • To address these problems, maintaining open lines of communication and successfully managing the remote workforce becomes essential.
  • In this scenario, the client has more control over the work and can make adjustments as needed.
  • Both outstaffing and outsourcing can be financially-viable, depending on your company’s goal.
  • Outstaffing (also, staff augmentation) — a cooperation model when a client hires developers from a tech vendor to work with the client’s in-house team.

For example, you use tools like Slack, and Asana to plan, discuss and keep track of projects. Some companies have an existing IT team, while others, such as startups, choose to operate without one. If you lack technical capabilities and can’t lead a team of developers, outsourcing is the better option.

Which Type of Projects does Outsourcing Work Best for?

These terms are typically used interchangeably and only have minimal differences in their approach. Less project transparency is implied by outsourcing, however depending on the goals of the company, this could be advantageous or detrimental. Employers can concentrate more on their business thanks to outsourcing because there are less interruptions from IT issues.

outstaffing vs outsourcing

To turn a great idea into a working digital product, you need the right people on your team. Qualified candidates in IT are not very easy to find and, if found, to keep on your team. Instead of http://documkino.ru/category/stati/page/46/ building an expensive in-house team, many companies opt to outsourcing and outstaffing (IT staff augmentation). The task scope highly correlates with the type of problem you want to solve.

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