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You don’t do this directly, as the outstaff team member is still an employee of your IT outstaffing provider. The choice of model depends on the tasks and requests of your company. This article will help you understand the pros and cons of outsourcing vs. outstaffing and identify the main goals and capabilities of these two models. These two models help companies accelerate development and optimize staffing costs, as well as leverage the invaluable expertise of IT professionals around the world. Thus, Grand View Research, Inc. calculated that the cost of outsourcing and outstaffing would grow by 7.7 percent per year.

  • If the increasing breadth of work is going to continue, you can engage another full-time specialist.
  • Instead of building an expensive in-house team, many companies opt to outsourcing and outstaffing.
  • Get only the assistance you require, when you require it.
  • Consider that you’ve employed a permanent team of developers, designers, testers, and project managers to work alongside you full-time.
  • To achieve the desired quality, a client needs a dedicated software development team that can guarantee efficiency in operations.
  • But when the client has little-to-no experience, it’s safer to entrust the job to the outsourcing agency and take advantage of their accumulated experience.
  • The main company will send them tasks and payments for a certain number of hours per month and get the job done.

As you may have seen, IT outsourcing is simple and efficient. You pay for the product you need and don’t care how it is created. However, this outsourcing model also has its disadvantages, which also should be mentioned. Being a part of your development team, such an employee is always available for direct communication on current business issues. And it is straightforward to monitor the results of their work in person.

Instead, this will be done by the outstaff company with which you agree on the project’s details and deadlines. They select the right professionals from their talent pool for your tasks and requests. As a result, you have the right performer or team for your project. There are many ways in which you can find and hire outstaff or outsource cooperators. Web infrastructure in this field is rater developed, so you can easily find a lot of listings and review websites that will contain information about your potential partner.

Outsourcing Vs Outstaffing: What To Choose

It’s an arrangement that can work smoothly, but you must keep your HR department apprised of your outstaffing development plan and ensure the engagement rules are clearly defined. When you compare outstaffing vs. outsourcing, you’ll find that outstaffing can feel like you’ve expanded your staff without the headaches of taking on long-term employees. 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.

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. The customer has no direct influence on the progress of the work, as he has no direct access to the development team. Therefore, the control over the efficiency of programmers’ working time is, in a certain sense, conditional. Suppose you are dissatisfied with periodic progress reports by PM and would like to be fully involved in managing your product’s development. In that case, the outsourcing model is probably not the best fit for you.

Staffing providers should anticipate customer needs, including the number of available professionals or developer teams, and move gradually to fulfill the requirement with matching IT personnel. The core objective is to enhance and ensure efficient project running for CIOs or managers by providing experienced professionals on time. You don’t need to direct a working team; neither you have to dive into technical specifics of your project. However, you ought to control it, usually by collaborating with a project manager. Expanding the company’s own development team with the service provider’s staff. Unlike the outsource team, you are hiring outstaffed employees.

outsourcing vs outstaffing

The budget and time frames are limited, so there’s no opportunity to hire an entire team of professionals in house. Don’t let your vendor plead “client non-disclosure.” They should be able to send you a portfolio of their work and have clients who are ready to speak with you directly if need be. The discovery phase is a critical step in your process. At this stage, ProCoders are making a development plan. We help to estimate your project as accurately as possible, but you should understand that even in the most accurate measurements, there are errors.


By doing so, you will be able to identify which model is the best for your company. Some companies do not have well-laid down structures on how to undertake software development. Also, these companies may not possess the necessary skills and infrastructure to hire competent software developers.

Hire an expert for a short time and let them go when you don’t need their services anymore. The production speed will increase with the help of competent workers. Outsourcing company developers are vetted professionals in their field. You don’t have to train them beforehand – they will hop onto your project right away. You don’t have direct contact with all members of the team, which increases the probability of being cheated.

outsourcing vs outstaffing

The time difference dilemma can be solved with professional project management and regular reporting. Here at Waverley, we provide our engineers Emotional Intelligence education to ensure this competency. As you can see, outstaffing and outsourcing have a common prefix – OUT.


To sum up, when you choose a software outsourcing service for your Product Development , the client needs to have a local CEO , Sales, Marketing, Accounting, and Finance departments. In fact, Sales, Marketing, Accounting can also be performed remotely by the same or a different provider. 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. In both cases “out” means external or distant, meaning the human resources that get the work done are external to the company that wants to develop and implement the software. If you’re willing to put in the extra effort, the savings can be substantial. You are in charge of the development process on a daily basis.

outsourcing vs outstaffing

When they want to address certain areas in the development process, they must go through the project manager. The Outstaffing model has a strong prominence for quality. The client company chooses a dedicated development team that works under it — more like an offshore branch. The team only handles the client’s tasks, which guarantees dedication towards the project. As a result, you can always expect high-quality end products. Staff the dedicated development team with just the right talent to fill the client’s requirements.

These models likewise permit you to accelerate the item send-off, stay away from the timesome enrollment interaction, and spotlight on center business exercises. A situation where a software development process requires the client to divulge sensitive company information is not rare. In such a case, it calls for the client to be extra careful how and to whom they share the information. Outsourcing means hiring an outside contractor to do jobs that are traditionally performed in-house.

Pros & Cons Of Outstaffing

There is no formal employment relationship between the customer and the remote worker. Therefore it is not difficult to replace such an employee or refuse his services when the need for them has run out. At Riseapps, the professional developers have mastery in different technologies like – Swi…

outsourcing vs outstaffing

So if you have limited time, finding a remote development team that specializes in your area of interest will probably be quicker than hiring your own. Companies are increasingly looking at ways to improve their performance in terms of quality and efficiency. They want to find new ways to do things better and faster than they have been doing before.

Outsourcing Vs Outstaffing Models: Whats The Difference

Are an asset to the existing team, expanding its expertise and possibilities. You receive a specialist that will be at your disposal. From the start of their employment on your project, they will work for you exclusively. At this stage, the business establishes communication channels. They also prepare the working environment and monitoring tools. More than a third of small businesses surveyed in Clutch’s 2019 review outsource a business process and more than half have plans to outsource in the future.

Usually this model results in high-quality code and fast completion of the project with no extra charges. All of that management and turnkey service has a cost. You must pay by the hour for the assistance of not just the IT outstaffed personnel, but also the project management team assigned to oversee your account under an outsourcing arrangement. Many vendors will charge you a higher hourly rate for a minor assignment, but will reduce their fee if they know you will return for larger projects in the future. If you need an expert opinion on software development outsourcing vs outstaffing, or if you want to know what the differences are, you may ask Qubit laboratories professionals. We know a lot about outsourcing vs outstaffing because it’s our business.

In that case, outsourcing is the most suitable option for you. On the other hand, if you have already set up some IT processes and have everything you need to manage and work with a remote team, feel free to choose outstaffing. However, do not forget that each case is unique, so we recommend that you first consult with specialists.

Which one you need therefore depends on whether you have an in-house team and what kind of expertise you require. If you are not 100% sure about your ability to outsource or outstaff, Voypost can help you choose and build a dream team for your business needs specifically. We provide both outsourcing and outstaffing services and have extensive commutative experience in a wide variety of specialties in all areas of digital product development. Outstaffing is the practice of hiring a third-party business that rents its employees to you on a full-time basis. Unlike an outsourcing business, an outstaffing company is not responsible for the quality of the services they provide. Instead, you integrate an employee directly into your team of developers.

How many engineers you have in-house and what the overall IT development experience you and your engineers have is like. Organize and manage business trips and other essential travel, organize purchases necessary for the team’s operation. Provide accounting and legal support to the team members; manage payrolls.

To complete your projects, your outsourced IT staff will require hardware and software, but these costs will not appear on your expense ledger. Your vendor will be accountable for all of those charges, which will very certainly be reflected into their estimate for working with you. To begin, let’s define the differences between software outsourcing vs outstaffing.