Its principles are similar to a Smart money term in investment. Choosing such a method the company invests not only in creating a product or solution but also in knowledge and skills. Organizations that use smart outstaffing minimize the risk of mistakes thanks to a high level of staff expertise. If you’re on the fence about your ability to outsource vs outstaff, ProCoders can help you choose the information technology outsourcing services. We can work with your team as an outsourced or outstaffed resource.

In the case of outstaffing, it can be a contract for a term necessary for the performance of certain works. By the way, fast-growing IT companies often combine outsourcing services, working on projects in general, and outstaffing services. Since you are buying a turn-key project, the outsourcer is responsible for estimating and scheduling the necessary resources for the project. Of course, the agency deals with paying its employees’ salaries, bonuses, and tax issues, allowing the customers to focus on other areas of their business. Below you may find a brief presentation of the projects in which our company has been involved. At OnBench, we provide services for both outstaffing and outsourcing companies.

Outsourcing Pros:

We will be glad to discuss your ideas and advise you on which solution would be the most effective in your case. If you are ready to move towards your goal, we are prepared to help. Outstaffing allows you to flexibly manage your workforce, engaging certain people only when you need them. Below we’ll explain the features of both methods of IT staff augmentation and note their advantages and disadvantages. In addition, we will consider the cases when one model shows better results in a high-quality software product and better cost-effectiveness for the client.

With outstaffing, you work with a company that finds and manages remote employees. They take care of all the recruitment, payroll, and legal stuff, while you focus on managing your team’s work and ensuring they meet their goals. This is a great option if you need to scale up your team for a specific project quickly or if you need temporary staff for a short period of time. That being smart outstaffing 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. An outsourced team can handle tasks like app creation, website development, software development, and more.

The Cost of IT Outstaffing Services

Outstaffing is better for clients with significant, long-term needs that need day-to-day control of their vendor team. Outsourcing is better for clients with shorter-term needs that necessitate turnkey service from their vendors. When people wonder what is outstaffing and why you’d choose to work this way, the answer lies in having more day-to-day, hands-on management. In this outstaffing model, you work as the project manager. You handle the quality assurance of the development process.

Computer Economics claims that 65% of businesses outsourcing application service will continue to do so and plan on further increasing their involvement in outsourcing. Outstaffing is ideal for companies that are working on newer, less established projects or who prefer to have more control over IT development. Outsourcing means a company gives their idea to a remote development team — and they deliver a final digital product. The main difference between outsourcing and outstaffing in software development lies in the management, control, and responsibility peculiarities.

Coding & Development

That is, if you already have a business, it can be more cost-effective to hire an outside specialist for a one-time project or task than to hire an entire IT department for ongoing support. Outstaffing is usually cheaper than other business models. We offer all the necessary expertise to design, build and launch mobile & web apps. By the way, we have been recognized as the Top B2B company in Ukraine by Clutch.

It wouldn’t be just freelancers you have found on the freelance platform, but real professionals who were already interviewed and tested by specialists. We help to estimate your project as accurately as possible, but you should understand that even in the most accurate measurements, there are errors. And even more so in development – details and nuances can emerge that were impossible to foresee.

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The absence of extra communication between the client and those directly involved in the project frees his time to deal with other pressing issues facing his business. It is not a secret that cooperation with well-established offshore IT vendors often leads to the same practical result for less money. Firstly, their labor costs are lower for equal technical expertise, and secondly, there are no taxation costs. With vendor staff often working remotely, or at least separately from the rest of your team, communication channels are important.

On a regular basis, we conduct one-on-one meetings, as well as report on team motivation and feedback. Constant and close communication with the team members helps to establish rapport and to ensure they are motivated, involved, effective and keen to align with the client’s business. Waverley also provides training and mentorship programs, and creates professional development plans for every employee.

Step 2 – Search for IT outstaffing companies

Outsourcing involves hiring an external company to handle specific tasks or projects, while non-outsourcing means that company employees handle all tasks in-house. The key difference https://www.globalcloudteam.com/ is whether external professionals are involved in completing the work. Consider the location of your business and how that may impact your ability to outstaff or outsource.

• Not every company can afford a complete IT department with developers, testers, and system administrators on staff.
• We will not only provide qualified employees but also ongoing support for a stable result.
• Both outstaffing and outsourcing offer unique advantages and considerations that companies must carefully evaluate.
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• Both of these terms have come in the IT sphere and considered relatively new ones.

However, each case is unique, and it’s always a good choice to consult with the experts first. Outstaffing comes with the responsibility of managing remote developers. Even if they’re not physically present on your premise, you manage them as if they are a part of your in-house team. Conversely, an outsourced development team is self-managed. They’ll coordinate tasks based on project requirements and report progress to you at a specific timeline. Statista forecasted that the IT outsourcing revenue would hit US$395.00 billion in 2022.

Outstaffing: Pros and Cons

Therefore, when a person leaves, their experience is lost, and finding a replacement turns into a long and expensive undertaking. Obviously, this method often lacks structure, transparency, and communication. An outsourcing provider usually works on a project-based business model which means that most likely the client entrusts the outsourcing company the whole project from A to Z. The client rarely has access to the development team itself and those people who complete all the work on the project usually work on several projects at a time.