Outsourcing vs Outstaffing Models: What is the Difference and Their Pros & Cons

How to prevent fraud in the supply chain, store patients’ data, or build an app that analyzes insurance-related data and comes up with a prediction? All these cases can be covered by experienced developers and the appropriate experts. The outstaffing agencies are capable of choosing all the relevant specialists. This means you won’t have to spend a major amount of time on this task.

Get into detail of how to create a medical billing software system and how much it would cost. SCAND is here for you to offer a pool of 70+ front end engineers to choose from. If you are a client who likes to have a hand in the day-to-day activities of coding, planning, and scheduling, outsourcing may not be for you. For example, you need to file an MVP to receive investments, or you just received investments and want to spend them wisely to make an application, website, or other product.

At ProCoders, we usually ask our clients to think hard about the kind of outstaff projects needed. Will you truly have enough work to keep one or more people occupied full time, year-round? Do you have the capacity to bring that person in as a “vendor worker” or “contract worker” within your company? Do you want access to this worker as a manager, working with them and controlling their workflow daily as if they were a member of your ongoing IT staff? Facing new challenges, IT staffing industry deals with the identification of industry needs and searching for the workforce to move the majority of firms forward.

software outsourcing and outstaffing

If you need to execute the project on a turnkey basis and do not have specialists to solve this problem, it will be much easier to hire an outsourcing agency. The idea of an outsourcing agency is to finish the customers’ project fast and efficiently. When you’re hiring an outsourcing agency, you can sleep easy and be sure that there won’t be any miscommunications amongst the team of executors. Still, it requires lots of time, and it’s also expensive, while it can never reach service provider quality levels for the exact or even lower price. Service providers offer organizations a service-level agreement that will provide them with affordable service what is outstaffing continuity. Modular stacks – Clients can choose cloud infrastructure components they want as managed service providers have a wide range of customized services to offer.

Outsourcing versus Outstaffing: which should you choose?

Outstaffing allows you to flexibly manage your workforce, engaging certain people only when you need them. You don’t have to worry about hiring or firing employees or paying their wages and taxes. An outstaffing agency does all this by offering any suitable candidates for your purposes. Clients often choose outstaffing when they already have their tech team but lack some experts, so a task can’t be handled internally. At ProCoders, all of our developers are language tested as we do not hire anyone who does not speak English. If a specialist is technically very good, but their English level is not high enough, we hire them, but before putting him on a project, we provide them with English language courses.

software outsourcing and outstaffing

When hiring software development teams there are several engagement models to choose from . Businesses that opt for outsourcing usually don’t have in-house development teams, or the team is relatively small to complete the project on time. So they need to seek for and transfer the full project development and management to an outsourcing provider.

So, if your company is new, has limited software development budgets, or otherwise needs to do things “on the cheap,” hiring an outsourcing company might prove cost-prohibitive. In this article, we’ll examine each one, analyze the pros and cons, and help you identify which type of outsourcing companies will meet your software solutions needs. The fixed price model of outsourcing and outstaffing involves an agreement within which a partner company promises to produce a project with a clear price. When yououtsource software developmentto another company, they are contracted to carry out the entire project from start to finish.

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There are no minimum order amount or flat project prices since all projects are unique. Contact us and describe your project, your budget limits, and we will come back with a personal quote. software outsourcing and outstaffing Our products – both proprietary like Xeoma, and created for our clients – do sell successfully around the world. We can also take up urgent projects where we’d need to start urgently!

Since we have years of outsourcing experience, we know how to remotely organize a smooth working process. Learn more about how we cooperate and check the completed projects. Even though both models have lots in common and help companies find tech support, the covered services and use cases differ.

software outsourcing and outstaffing

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. Our team conducts the talent pool analysis and selects the best developers depending on your requirements. We also provide interviews and evaluate technical test tasks done by candidates. Bringing a business idea to life often requires SMEs, startups, or enterprises to hire an experienced team to deliver their projects successfully. But they may face a significant problem related to the tech talent shortage.

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Since you are not in direct contact with the team, it can be difficult to gauge the level and pace of work on tasks. You receive documentation upon completion of work, along with the source code and the deployed product. Since the work can be carried out in a remote format, you can team up with experts of any level, wherever they are. That means they can easily monitor how software developers use the given data to them. Here at FelenaSoft Company a project cost is calculated by multiplying the base cost by how much time your task will take.

software outsourcing and outstaffing

In general, outsourcing is when you have an idea, but there is no way to implement it on your own. They can also handle much of the hiring process, which simplifies your interaction and ensures skilled personnel. Outsourcing companies are accountable for the ultimate outcome produced by their development team. This means that clients can reject the finished work if they are dissatisfied with the team’s performance, which is not the case with the outstaffing model because the client is in charge. With Outstaffing, the client manages the outstaffed team and has complete oversight on when and how they work. The client is also responsible for hitting all key development milestones and timelines.

Pros of outstaffing

Although an outstaffing IT model is comparable to outsourcing, engaging talent through outstaffing has different characteristics. Specialists have considered the most convenient design, without limiting the functionality of the service. There is a wider, more interchangeable selection of resources available.

  • As mentioned, Riseapps provides both – outsourcing and outstaffing services.
  • Among thousands of software developers for hire, we look for the ones who fit the client’s culture, ethics, and mindset.
  • We are located in Kaliningrad, Russia that allows us to have lesser time zone difference and lower rates of software development outsourcing.
  • The cost of the project is counted as the rates of each specialist multiplied by the number of hours spent.
  • An outsourcing provider usually works as your independent engineering department, taking care of all aspects of building your product or whatever elements you choose to outsource.

The outsourcing model also applies to different technologies, and an integrated software development function. When you outstaff, the vendors you choose are tied to your company’s work similarly to a full or part-time employee, so you have to stick with your resources. The flexibility that outsourcing offers can be a key deciding point for many clients.

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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. ’offshore’ teams – the outsourced software development is done in another country.

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So, this practice means that the organization providing a service in this way takes over the work in full. For example, if this is an app, they will complete everything from specifications to maintenance. And by choosing to outsource, you will most likely interact with the manager of the hired team. We are located in Kaliningrad, Russia that allows us to have lesser time zone difference and lower rates of software development outsourcing.

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Now let’s consider the main advantages and disadvantages of outsourcing development. In most cases, you will only interact with a project manager from the outsourcing team, whom you’ll provide your deadlines, updates, and requests. “Time & Material” model is equally used in both outsourcing and outstaffing. Moreover, daily cooperation with the same IT specialists helps to build rapport with a team.

Here we have briefly described a few trips and tricks on how to do that. Differences in time zones can bring excellent advantages to your organization. For example, if your project requires 24/7 support, you can select vendors from various overlapping time zones.

You’ll learn a lot from these interactions and be able to spot any red flags before hiring new team members. Our team of specialists provides expert advice on hiring options, the right tech stack, and the types of talent that you need for a project. These two models help companies accelerate development and optimize staffing costs, as well as leverage the invaluable expertise of IT professionals around the world. When you outstaff your work, you can easily add employees to your project and as easily disconnect them. For example, if you need a designer for a month, you are given one for a month; if you need an additional developer until the end of the project, you are given a developer.

The team assembled for your project can start delivering within 14 business days. Our teams run 100+ active projects and deliver 50+ PoC, MVP, and Discoveries every year across such industries as manufacturing, automotive, healthcare, and telecom, https://globalcloudteam.com/ to name a few. Your choice of pricing model will depend on the specifics of your project, and there is no right or wrong answer. You need to negotiate the pricing with the vendor and select a model that suits your particular project.