The outsourcing company can keep distance, handling the project on their own and reporting progress to you throughout the development cycle. Or they can be a team player, interacting with your specialists along the way. One of the benefits of contracting an outsourcing company is a pool of talent they offer. As you’re hiring a team, not just a single specialist, you have access to the experience and expertise of the company’s professionals.

• Whether you are an entrepreneur willing to make your company more efficient or a project manager responsible for delivering projects quickly, outstaffing is a lucrative option.
• In this article we’ll define, compare and inspect pros and cons of outsourcing and outstaffing models.
• Outstaffed developers are an asset to the existing team, expanding its expertise and possibilities.
• And there are pros and cons to be considered talking about outstaffing vs outsourcing, too.

There are two outstaffing models for paying for and managing your outstaff team. • Usually in IT outstaffing, the staff is more qualified, and therefore they’re paid every month (or every two weeks), not from the client company but their agency. Employees may receive hourly wages or pay by project based on its outcome. With outstaffing, you can quickly hire qualified individuals for your company. At the same time, your operational costs go down as there’s no need to buy or rent hardware and office space. Whether you are an entrepreneur willing to make your company more efficient or a project manager responsible for delivering projects quickly, outstaffing is a lucrative option.

Outstaffing: Advantages and Disadvantages

However, it can also be detrimental as outsourcing companies are often not as qualified or experienced as the company doing the outsourcing. This can lead to issues with quality and efficiency, which can ultimately cost a business more money than if they had simply hired additional staff. On the other hand, outstaffing is when you hire employees within your own company who specialize in certain areas such as marketing or sales. Outstaffing gives you more control over how your business operates because these employees report directly to you and work closely with other departments within your organization. This can help with productivity and communication among employees while also providing better customer service since everyone is working together towards a common goal.

Whether you want to hire developers to speed up the development of a project or expand your team, outstaffing emerges as a cost-effective solution. Outstaffing is a highly successful hiring model that your business can leverage to achieve new heights of success. Especially, if you want to hire remote employees or a team of developers, outstaffing makes the best option. You’re an insurance company that requires a compliant customer relationship management (CRM) platform to manage your client’s data and process claims more effectively. However, your tech department is either too small or too busy to deal with end-to-end development. Naturally, you would like to have a compliant and reliable solution without spending valuable time on searching and hiring skilled and experienced developers.

Outstaffing vs. outsourcing: which one is right for your business?

All you need to do is share your requirements with an outstaffing service provider, and they will arrange the right talent for your needs. Moreover, you won’t need to worry about giving extra employee benefits and become familiar with the local employment rules. Outstaffing is one of the hiring models that are widely popular in the IT industry. It allows you to hire skilled developers who work alongside your in-house team to deliver projects on time. With outstaffing, it becomes possible to hire talent from different parts of the world and have the brightest minds working for you. Outsourcing and outstaffing help small businesses to keep up with the larger corporations by attracting powerful intellectual capital.

In general, cost savings should not be the first (much less the only) reason for choosing outstaffing. We recommend outsourcing for secondary projects or functions and outstaffing for the primary ones, the quality of which determines the future of the entire company. Your company leases professionals to work exclusively on your project. Workers receive payment through an outstaffing agency, who solves all workforce-related issues as well. The difference between these concepts is that outsourcing transfers authority to a contractor to perform a specific business process.

Most Prominent Benefits of Outstaffing

Also, in both cases, those developers are working on the project remotely. Still, the main difference between those two concerns the project’s management. Outsourcing is the process of transferring specific jobs and tasks to another company. On the other hand, outstaffing is a temporary service in which companies hire freelancers on an hourly basis for their projects/tasks. The main difference between outsourcing and outstaffing is that outsourcing implies hiring people on a long-term basis, and outstaffing only for a specific project or job. Modern companies often opt for hiring outside specialists or teams to solve specific issues and handle dedicated tasks.

Thus, the goal of the outsourcing company is to provide employees, ensure the workflow and complete the task. The main difference between outsourcing and outstaffing is the subject of the contract. If you realize your human resources aren’t enough for a timely and quality project delivery, staff augmentation may overcome these short-term workforce challenges. Alongside the peace of mind, lower costs, and full control, outstaffing has a few drawbacks to consider.

What is outstaff?

However, if you are considering outsourcing, you’ll need to ask yourself different questions. Do you have the flexibility to let an outside vendor take the daily reins of your IT development, even if it is just for a project? If the answer to either of these questions is no, you should probably consider the long-term control you’ll get with outstaffing. If you need to keep control over the workforce but eliminate their overhead and financial support, outstaffing is an attractive option. The responsibilities of the official employer are shifted to the contractor, and you manage the personnel, as usual, paying for the services of the outstaffer through their contract.

While this isn’t usually an issue when dealing with copywriting services or social media management, it can be a problem when you’re outsourcing design projects. If you’re on the fence about your ability to outsource vs outstaff, ProCoders can help you choose the information technology outsourcing services. We’d love to talk to you about your needs today and create a proposal specifically for your business needs.

Gives you access to the broad talent pool

This means that you can focus on your core competencies while outsourcing the work that is not a part of those competencies. This can be quite beneficial to any team looking to complete one-time projects that require expertise in a certain field. It’s also about getting access to talent that you might not have on your own team and giving yourself more time to focus on other projects. When you have a specific plan and a dedicated team that helps you boost your product, fast growth is inevitable. As an IT vendor based in Central Europe, Estonia, Croatia, Portugal, and Albania, we have access to a deep well of programming talent in various specialties and expertise levels.

There are several paramount aspects to be taken into account for choosing the relevant agency. Review the agency’s portfolio and services, evaluate the amount and quality of the performed job, and form an opinion about Cost. Typically, European outstaffing agencies are cheaper than those located in the US. Ukraine is considered to be one of the best money-saving directions for hiring external contractors. A company with a portfolio of cases should also enlist at least a couple of reviews on its website. It allows establishing more trusted relationships with potential clients.

Take our Self-test to determine whether IT outstaffing is the right fit for your business.

Perhaps the most obvious benefit of outstaffing is that it can save your company money. You don’t have to pay for overhead expenses like office space, equipment and utilities. This can make outstaffing an attractive option for companies that are tight on cash. Outstaffing has become increasingly popular in recent what is outstaffing years as businesses attempt to do more with less. By hiring an outside firm to handle certain business tasks, companies can save money and focus on their core competencies. Under this model, you pay for your outstaff team member’s salary, buy their computer equipment, pay bonuses and overtime, and cost benefits.