Outsourcing or outstaffing – which one is right for you?

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Outsourcing or outstaffing – which one is right for you?

Digital transformations require qualified staff. However with the high demand for skilled programmers on the market it is not easy to find and get professionals you need.

Recruiting qualified staff for the project may take months, causing stress, delayed deadlines, missed business opportunities and financial losses.
Possible solution? Outsourcing or outstaffing tech pros. In short time you get professionals that help to boost your project.

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What is the difference?

While outsourcing and outstaffing is often considered to be the same, it’s a misunderstanding. Both terms include the remote work, however there is a significant difference in management and responsibilities.

Outsourcing

Outsourcing means that you are hiring a company to develop the solution you need based on requirements you have. Your software development outsourcing partner is responsible for the project workflow and manages it from A to Z. You don’t have to worry about the qualified team, equipment and resources. Just concentrate on business operations while your custom solution will be delivered to you, tested and ready to be used.

Outstaffing

Outstaffing means that you hire a dedicated team of skilled professionals that work remotely on your project under your supervision. In most cases the team works together with your in-house programmers, strengthening your project. You control your remote programmers’ productivity and workflow and give them tasks according to your needs. The outstaffing software development company takes responsibility for finding professionals you need, employing them and administering.

Outstaffing pros:
  • Prompt reaction to your business needs. You have talents with expertise you were looking for.
  • Efficiency. With highly skilled professionals your project will go faster.
  • Flexibility. You manage your team and add or reduce the number of specialists working on your project as needed.
  • Cost reduction. You don’t spend additional costs on recruiting, personnel maintenance, taxes insurance etc.
  • Adjustability. You manage your team, set and adjust tasks according to priorities of your project.
Outstaffing challenges:
  • Communication. As outstaffed team members work in another place (abroad or overseas) a lack of communication between them and in-house managers and programmers sometimes occurs.
  • Motivation. Outstaffed team needs additional communication in order to stay enthusiastic, updated and focused on the project.

Which one will work for you?

Many companies choose the remote software development teams due to their price of service and the quality of end product delivery. Both software outsourcing and outstaffing will give you quick results and progress. So what model to choose?
Outsourced software development will be the best option for startups or companies that don’t have in-house programmers. If your business needs digital solution in order to stay ahead of competitors, but there is no development department in your team, it will be easier to explain your ideas and needs to an outsource software development provider, discuss time and budget estimation and delegate the development process to the partner. If your vendor works Agile, software features will be delivered to you one by one so you can check them and adjust project requirements.

Combination of in-house developers and outstaffed professionals is extremely popular now, especially among tech companies, as it is very productive and rewarding. It often saves projects and is very cost-efficient. With outsourcing a dedicated team as a service you get access to skilled professionals that are difficult to find in your area. However this model requires strong technically advanced managers capable of overseeing the project workflow, setting tasks and ensuring open communication and productivity.

Outsourcing Software Development

Outsourcing can help to accomplish a variety of tasks. You can outsource software development, data entry, design, testing, anything that requires an expertise your company doesn’t have.

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