Implementing recent technologies, such as Artificial Intelligence, Augmented Reality, IoT, Blockchain, or Cloud requires experts your company doesn’t have in-house. In light of fierce competition for this type of talent, you may find yourself struggling to source such experts locally. Both outstaffing and outsourcing expand the radius of your talent search to include offshore and nearshore regions, which is a great way to add the needed skills. However, many clients have noticed that the model actually lends itself better to long-term collaboration.

By the way, we have been recognized as the Top B2B company in Ukraine by Clutch. All thanks to our clients’ positive feedback and, of course, the expertise of the Uptech team. If you’ve decided that outstaffing is right for you, follow these steps to hire a reliable IT outstaffing company.

Cons of Outsourcing

By hiring an outstaffing agency, you receive a specialist or a team of specialists who will be at your disposal. From the beginning of your contract in your project, they will work exclusively for you. Understaffed developers are an asset to the existing team, extending their experience and capabilities. Outstaffing allows businesses to quickly extend their team with skilled developers. I’ve clarified the differences in the outsourcing vs. outstaffing argument and scenarios where either is a good fit.

But, several clouds could affect your happiness, including motivation, adaptability to the culture, and the psychological stress of new employees from various nations. Paying for an outsourcing company’s services is much cheaper than paying the salary of the specialists employed on the staff. Besides, office space is saved since the provider’s team works on their territory. Outstaffing is ideal as a long-term IT staff augmentation approach for companies with an existing IT team. It allows them to quickly set up a remote team that can be productive almost immediately.

Outsourcing vs Outstaffing: What’s the Difference and Which Should You Choose?

These two concepts are nuanced, but here’s the key difference. This can’t always be determined from a resume alone — you have to get them in front of people and see how they interact with one another before making any final decisions. This can be useful when a company is short-staffed or has a high turnover rate. And although it may be a type of outsourcing practice, they’re not one and the same.

Generally, outstaffing is ideal for businesses with long-term requirements, an adequate budget, and an in-house IT team. Significant time zone differences frustrate collaboration between the outstaffed developers and your in-house software team. For example, if a US company hires Philippines-based developers, holding a what is outstaffing spontaneous meeting will be tricky as the business hours don’t overlap. Next, hold an in-person interview with the outstaffing team, preferably with a technical manager. Find out if they have developers armed with the skills that your team needs. Or if they have overlapping experience with your business’s operation.

What Is Outstaffing?

The client manages the project processes in both cases, but in different ways, depending on the model. Also, in the case of outsourcing, the contractor is looking for employees for the customer’s company and formalizes them in its state. When running out of staff, the contractor assigns employees of the customer enterprise to its personnel. This is the practice of transferring certain tasks and functions by the client company to the contractor company, specializing in the relevant field. This term appeared in the mid-80s and originally sounded like outside resourcing.

The main difference between outsourcing and outstaffing in software development lies in the management, control, and responsibility peculiarities. In outsourcing, the hired tech team is the only team that’s involved in the development process from A to Z and is responsible for the resources, management, and end result. The outstaffing model means that a company invites software engineers from an external provider to its internal team. You sign a contract with an app development service provider to obtain the necessary specialists by avoiding recruitment, onboarding, management, and other HR-related processes.

Outstaffing Advantages

Saying something like “managing the project is up to the client” sounds great to many business owners until it actually comes time to manage the project. But if the development process is likely to change, outsourcing can be a difficult solution. While Zoom and other platforms have helped lessen this issue, many clients are still frustrated by having to repeat themselves during the development process. Outsourcing vendors understand this and are equipped to make delivery faster than most in-house teams. The development team will make sure the code is operational before it’s delivered. This means you, as the client, only pay for the time they spend working on a particular project.

• You have full control over the quality and speed of your project, being provided with direct access to any team member.
• They also can be an option for extending your software project team.
• The model you choose depends on your company’s needs and tasks.
• She is NIIT qualified in Advanced Network Computing, Google Certified in digital marketing.
• You do not need to train them beforehand; they will be incorporated into your project immediately.
• However, when you go for outstaffing solutions, you can handpick professionals who will work on whatever tasks you have lined up for them.
• The third party has greater control over the final product regarding creation.

Agreeing to hire outside staff also means that you will be responsible for overseeing the speed, quality, and implementation of completed work. They may be in a different location and from https://globalcloudteam.com/ a different company, but they will be working as your own employees. You will communicate directly with your auxiliary team, distributing tasks and managing them on a day-to-day basis.

What is a dedicated team?

I’ve also addressed the challenges when hiring an outstaffing team. You can overcome many difficulties, such as language, culture, and reliability, by working with Uptech. Uptech is a reputable international app development company that provides outstaffing services. We partner with startups worldwide to build apps that users love. The time and material approach can also be called a flexible one.