Both outstaffing and outsourcing can be financially-viable, depending on your company’s goal. If you require a one-off app development, you pay lesser for outsourcing. Meanwhile, outstaffing is more budget-friendly when you want to scale your team long-term without tedious hiring and training. As software development technologies evolve, companies require developers with new skills. Outstaffing is a quick route to landing such developers without upskilling their internal team or going through a lengthy recruitment process.

Outstaffing is a good way to go for projects where it’s easy to weave external talent into your company processes. If you feel that you cannot integrate new team members seamlessly, it’s best to consider handing off to project to the outsourcing provider. Both outsourcing and outstaffing are aimed at reducing the exorbitant cost of building and maintaining https://globalcloudteam.com/ an in-house staff. These approaches let you skip such costly aspects as recruitment, HR, overhead, legal, employee bonuses and team retention and invest further into marketing and brand promotion. In outstaffing, you’ll know exactly how much time a team member invested in the project, which is typically a standard of 40 hours/5 days per week.

Cons of outsourcing

In both cases, the hired employees are part of the outsourcing or outstaffing company staff that pays them the salary and resolves all personnel issues. In this situation, the solution may be the temporary placement of the hired specialists on the client’s territory. Or you can set up communication channels that will be convenient for everyone with a clearly defined communication schedule.

Decide which method works best for both parties and agree on them. For example, you use tools like Slack, and Asana to plan, discuss and keep track of projects. Outstaffing ensures that your business has stable long-term support, while outsourcing is ideal for a one-time project. With outstaffing, you manage the remote developers directly and have total control over their tasks, milestones, information sharing, and deliverables. However, there’s very little visibility with outsourcing as you might not have access to source codes and some project documentation. Next, companies reduce hiring costs by tapping into markets with affordable and talented IT experts from Eastern European outstaffing companies.

How to Find a Reliable Long-Term Software Development Partner for Your Business

The process of hiring an employee is not a quickly addressed issue. A sufficient amount of time passes from the moment of searching and hiring. First, you must place a job advertisement, collect CVs, conduct several interviews, give and check a test task if necessary, give feedback, and coordinate all employment issues. You should also not forget about training, meetings that can occur more than once a week, and setting tasks and other routines, which take a lot of time and effort. The main goal of outsourcing is to use all resources large-scale and establish or create new goals for the business.

And while this approach has its advantages, you should also be aware of its pitfalls. For example, a business startup may have a concept of a product that the healthcare providers might benefit from. If they don’t have an IT department to create this product, they can outsource its development to the tech agency that will deal with it end to end. One of the challenges of outsourcing is communicating effectively with someone who may be located in a different time zone and/or speak a different language. Miscommunication can easily lead to delays and frustration on both sides.

The risk of an employee quitting the job

Run background checks to prevent hiring an IT outstaffing company that doesn’t align with your requirements. Clutch allows clients to leave comprehensive reviews and experiences of outstaffing providers. Compare them and choose those that provide consistently good services. Companies growing rapidly might need help to expand their software team to meet the increasing workload. In such cases, they resorted to software development outstaffing to augment their team with offshore developers.

• Outsourcing, as the way to contract the work outside the company, is a software development model that is now growing in popularity in the IT industry.
• This option contributes to the uniform distribution of the scope of work and their high-quality performance due to the control by the client.
• Nevertheless, both are in high demand as companies and startups seek to scale their operations and pursue rapid growth.
• Businesses dealing with sensitive data and next-generational technologies might hesitate to outstaff unless the issue is addressed.
• And before we explain this any further, we need to provide a few definitions of terms we’ll use throughout the article.

Outsourcing works for businesses who don’t have an IT infrastructure to manage your needs, or you have too much on your plate but would still like to get the work done. Meanwhile, outstaffing works for businesses with an existing IT department that need support to handle specialized parts of the development process. Now that you know the difference between outsourcing and outstaffing, how can you decide which is best for your business? Over 7 years of work we’ve helped over 150 companies to build successful mobile and web apps. Here’s a breakdown of the average price of software developers’ services in popular outstaffing destinations.

Quytech As Your Outsourcing and Outstaffing Partner

To decide what to choose – outstaffing or outsourcing in Poland, consider the type of problem and the needs of your project. Outstaffing is suitable if there are difficulties with several tasks, while outsourcing is better in the case of developing a project from scratch. On average, a software developer in Poland (whether a front-end developer or a back-end engineer) earns about 16 euros per hour. These figures are lower than the average salary for developers in the EU but also higher than their counterparts in India or Latin America. Don’t worry, both the process and the result are under control.

Usually, this type of work is remote, but it’s also possible to bring a person into your office as long as the agreement specifies this factor. In outsourcing, the client delegates full or partial product development to the outsourcing vendor’s team. In this case, the what is outstaffing outsourcing company is responsible for hardware, materials, and other resources needed to complete the project and provide the clients with the set deliverables. Usually, this business model presupposes low control from the client’s side unless specified otherwise.

In-house expertise

The dedicated teams may become an outsourcing development model after some time. It usually happens when the client is satisfied with the quality of cooperation. As it turns out, about 300,000 jobs get outsourced out of the US each year. Companies mostly outsource web development services, accounting, and marketing.