There is a growing need for IT workers to help organizations create applications, websites, and other digital services. A set of developers in a particular geographical region may demand more salaries than others, and you may want to get cheap labor elsewhere. The outsourcing or outstaffing approach is one-way companies can locate developers that are economical and capable of completing their tasks. Some companies may use online job applications in order to make an employment procedure easier. Continue reading to see how to choose right in this outstaffing vs outsourcing comparison.
Which is better for your company: outsourcing or outstaffing model?
Whether you choose the outsourcing or outstaffing model, one cannot deny that they are both ways of delegating software development tasks to third parties. The significant difference is that there are specific underlying considerations that are vastly different. As we explore outstaffing vs outsourcing, let’s see which strategy is best for your company.
What is outsourcing?
A software development project is outsourced when you hire a third party to handle all aspects of the work from beginning to end. It is the client’s engagement that distinguishes software outsourcing from outstaffing. The customer is no longer involved in the process. He’s not in charge of the development process or the team, and he’s not in control of overseeing the work or resolving any technical issues that may arise. It’s a fantastic option for organizations that lack in-house expertise in the field.
- When it comes to management, outsourcing means stepping back. Recruitment, administration, training, HR, and other tasks are not the firm’s responsibility.
- The customer may acquire a completed product produced to their specifications from an outsourced business that will manage the technical aspects of the process.
- The outsourced firm will provide the customer with access to expertise and technology that they would otherwise be unable to get.
- Outsourcing gives you access to a large pool of experienced developers with various skills.
Before deciding to outsource, you should consider the following disadvantages:
- Development teams and processes cannot be influenced directly. It’s possible that some businesses may benefit from this, while others could prefer greater transparency and involvement.
- There are no additional benefits to you as a customer other than receiving a completed product.
What is outstaffing?
Your internal development team expands when you employ an outstaffing business. In the event of a skills gap or a lack of labor, you may supplement your current in-house development team by bringing in remote developers. You won’t have to manage your own human resources or hire your employees since the outstaffing business will do everything for you. You, as the client, have complete control over the selection and management of your IT outstaffing services.
For a certain period, the outstaffing team acts as a supplement to your existing workforce, but without the hassle of recruiting, training, coordinating paychecks, and overseeing employee management yourself. It’s common for the developers to be well-qualified and ready immediately.
- It’s possible to train and educate current in-house employees while outstaffing.
- Recruiting outstanding people with no need to pay hefty taxes, insurance, facilities, wages, etc., is a huge advantage.
- The customer is not obligated to bear any expenditures or activities related to recruitment, training, administration, or human resources.
- In contrast to outsourcing, the cost of this service is cheaper.
- The customer maintains complete control over the development team and process.
- Low or no engagement in the development process does not function well with outstaffing.
- It is also possible that contractors will not carry out their obligations if they are given ambiguous directions.
- They may treat the corporation with disloyalty since it is not their workplace.
- To communicate effectively, high-quality channels of communication are required, and they might be expensive.
- A software development methodology and related credentials are needed since the development team is under your direct supervision.
- Since more power entails more accountability, the end outcome is much more in your hands.
There is added work to build up procedures for both the in-house and outsourced teams. It is entirely up to your company to use the software outsourcing and outstaffing approach. At Procoders, we know that outsourcing is the most incredible option if you want to keep your hands off the process and simply get the final output. At the same time, the outstaffing model is best if you wish for an inexpensive model and beneficial to your team’s development.