As a customer, you will not be able to directly command the development team. You can still influence the process through the project administrator. This is particularly helpful for businesses that do not have the internal resources to invest in developing their own onboarding programs. As a result, outsourcing IT work can provide a number of advantages when it comes to onboarding new staff.

outstaffing vs outsourcing

Tech companies tend to outsource minor and non-core software development projects due to the lack of in-house resources. In this situation, they don’t control the development process but seek the ultimate result. It is a type of remote hiring where a third party is hired by a company to take over certain projects for their business. Outsourcing is when you, as a service seeker, reach out to an independent outsourcing agency that provides you with experts to take care of whatever project you need help with.

What is the Best Choice for your Business?

This article explores why outstaffing is an exciting type of remote employment. When you outstaff, it can be difficult to monitor the quality of work being produced and ensure that tasks are completed on time. As a result, there is less control over the entire process which can make it more challenging to produce a consistent product or service.

outstaffing vs outsourcing

In this part, let’s take a look at the areas where outsourcing and outstaffing part ways. Now that we have made clear what these two terms are and what the benefits and drawbacks of these models are, we can move onto finding out which one to choose on what occasions. One of the great things about outsourcing is that you can staff up or down as needed.

IT Outstaffing Guide: Benefits, Challenges & Decision-Making Tips

When choosing a reliable provider, pay attention to whether the company meets all security and compliance requirements. You should pay special attention to designations aligned with the vendor’s technical expertise. With outsourcing, you outsource what is outstaffing tasks to workers, which he performs on a contract basis. The demand for outsourcing services has increased in recent years because of the effects of the pandemic. But the most successful firms were using this method even before the lockdown.

outstaffing vs outsourcing

Every developer will be assigned to an Account Manager who will track their performance and send out invoices under the contract. One advantage of outstaffing over in-house development is having access to a broader pool of highly skilled specialists. Choosing the most suitable candidate for each role is generally more straightforward when you employ offshore software development compared to working with the in-company team. It is also rather beneficial that outstaff developers constantly improve their skills by working on projects of varying length and complexity.

Myth 2: Outstaffing is only for companies with international operations

Don’t worry, both the process and the result are under control. A team of engineers and other technicians hired in Poland will take care of all aspects of your project, from concept and design to testing and finalizing the product. Let’s find out the big difference between outsourcing and outstaffing in Poland, and which one is better for your business.

The global IT outsourcing market, estimated at $342.9 billion in 2020, is projected to reach $410.2 billion by 2027. The industry is showing rapid growth, and this is true for both outsourcing and outstaffing models. You manage the overall distribution of tasks between internal and remote teams, while vendors handle smaller administrative processes. These two models help companies accelerate development and optimize staff costs, as well as tap into the valuable experience of IT professionals around the world.

What is outsourcing?

The hindsight is – companies have little control over how the outsourced team operates. Outstaffing and outsourcing work on a different hiring model and meet different business needs. In this article, I’ll share what is outstaffing, how it works, its pros and cons, and what inspires businesses to outsource vs. outstaff.

When you use your own team, figuring out what’s going on with the project is usually as simple as walking down the hall. This type of oversight is impossible to get from even the most collaborative outsourcing project. While this presents huge money-making opportunities for companies of all sizes, it also means they need to get their product to market as soon as possible. So, if your company is looking for IT outsourcing in a particular area or at a particular cost, you pretty much have the pick of the litter. You can choose a different work arrangement after a project is delivered. We have successfully replicated 370+ projects and continue to prove our clients’ trust.

What is an IT Outstaffing Model?

And while this approach has its advantages, you should also be aware of its pitfalls. The influence of outsourcing vs. outstaffing is usually very different. In this article, we provide the readers with extensive information on the topic to let them make a clear decision on the outsourcing model. In many cases, your success is likely to depend on how well the choices are presented.

  • Outsourcing vs. outstaffing is understanding what benefits these two hiring models have to offer.
  • If you want to change the course of the project, it tends to incur added expenses.
  • As companies grow and expand, they may reach a point where it makes sense to hire remote experts over in-house professionals.
  • And while this approach has its advantages, you should also be aware of its pitfalls.
  • In order to maintain a high level of quality, it is important to have IT staff that is highly skilled and knowledgeable in their field.
  • By choosing each talent yourself, you refine your employee pool, which in time benefits your business.