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Outstaffing vs Outsourcing: Key Differences & Benefits

That being said, outsourcing is a comprehensive model where a development team is hired to remotely deal with one of your development projects. In both models, the client has access to highly-trained developers with high levels of expertise. IT outstaffing in Ukraine is growing in popularity for many reasons, with one of them being the client’s ability to pick their preferred development team. By managing and encouraging collaboration between the remote and in-house programmers, the client has a better chance of developing efficient software. When people wonder what is outstaffing and why you’d choose to work this way, the answer lies in having more day-to-day, hands-on management.

The provider may not always have a deep understanding of your internal infrastructure and needs. Find one that specializes in serving businesses in your industry. Since MSP staff are not situated in your office, they are less available to deal with urgent issues. To remedy this shortcoming, make sure your MSP is able to provide immediate 24/7 available support. First, you have to pinpoint what knowledge and skills you lack, how many and what kind of specialists you need.

outstaffing meaning

The experience reported by Deloitte Survey respondents is mostly (78%) positive. Computer Economics claims that 65% of businesses outsourcing application service will continue to do so and plan on further increasing their involvement in outsourcing. Outstaffing is ideal for companies that are working on newer, less established projects or who prefer to have more control over IT development. Within the outsourcing vs outstaffing paradigm, Conventional outstaffing vs smart outstaffing software outsourcing means when companies delegate one of the business needs to a third-party service provider. Apart from software development, a company can turn to outsource to help with their manufacturing, accounting, software development, testing, support or call center, and other digital activities. Outsourcing means a company gives their idea to a remote development team — and they deliver a final digital product.

Outstaffing Opportunities for Digital Agencies: How Does It Work?

Ask former or current clients about their satisfaction with the vendor. Another key might be to explore what industries and what type of workload a company is engaged in. We build mobile and web apps for companies and enterprises from Western Europe and the USA, designing, developing and testing our products internally. Currently, we are focusing on healthcare, wellness, tourism, and entertainment industries, where we have a lot of successful cases. This way, it’s much more profitable to hire a specialist provided by an outstaffing company rather than a simple freelancer from Upwork, Fiverr, etc.

outstaffing meaning

If you cooperate with a vendor for the first time, we recommend starting with an assignment of smaller scope. If you are satisfied with the results, you can continue obtaining the benefits of software development outsourcing. If you choose to outsource, you will get a project manager assigned to your project.

Signs A Company Should Outsource IT – Forbes

The variety of services offered by MSP always allows you to choose a well-suited option. You can find a provider that offers a range of services from the list below, or one that specializes in just one specific service. You can hire a specialist for a certain period of time without special obligations. You do not have to pay for his/her training because you selected them specifically for particular tasks.

Facing new challenges, IT staffing industry deals with the identification of industry needs and searching for the workforce to move the majority of firms forward. 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. The rates might fluctuate depending on the tech stack an individual developer works with, their seniority level, and the unique skills they bring to the table.

  • The intermediary takes on the functions of paying wages, paying taxes, enforcing labor laws .
  • Whether you need an IT outsourcing agency or it’s better to go with an outstaffing company fully depends on your needs.
  • When a candidate matches the corporate culture of the client and their experience is relevant, the recruiter sends their CV with comments to the client and waits for feedback.
  • Data migration services We offer 3 data migration approaches Big Bang, Classic, and Agile.
  • This remote software development team can be managed by your in-house people or you can also have remote managers.

By the end, you’ll have a clear understanding of whether outstaffing is suitable for your business needs. No need to hold lengthy research in order to find professionals that would perfectly fit your project. Not a single minute will pass from the time you sign a contract to the moment when a team gets to work.

Better Control Over The Project

Outsourcing doesn’t necessarily take place in another country, though. If you need to execute the project on a turnkey basis and do not have specialists to solve this problem, it will be much easier to hire an outsourcing agency. The idea of an outsourcing agency is to finish the customers’ project fast and efficiently. If one of your developers suddenly fades out, or you have an emergency, hiring an outstaffed contractor helps you to keep your project running without substantive harm to the final product. Outsourcing and outstaffing shall become your rescue in case of an emergency project.

We are implementing innovative digital product development methods to make this process fast and consistent. BramblingTech comprises designers, IT specialists, marketing specialists, and content managers. Working with us, you get a mature marketing strategy for your website, web optimization, skillful implementation of innovations, and a deep understanding of project development. Additionally, out staffed employees are typically more invested in the success of your business since they are physically present in your office and working alongside your team members day-to-day. John Norwood is best known as a technology journalist, currently at Ziddu where he focuses on tech startups, companies, and products. If you need additional professional skills for an important project and do not want to tackle extra risks, feel free to contact us.

outstaffing meaning

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. Most often, outsourcing means that your contractor will do the whole scope of work – not just a task or two. If it’s an app, they will deal with everything – from technical requirements to final checks and maintenance. Having chosen outsourcing, you’ll most likely to interact with a project manager handling the team.

A multinational Japanese corporation – the world leader in digital imaging – needs to adapt their interactive presentation content for potential clients worldwide. Looking for a clever and cost-effective solution, they turn to Riseapps. Choose outstaffers from any corner of the earth, regarding their expertise, ratings and development fees. Is a type of contracting when a third-party team or worker, being officially employed by another company, performs the work for a client.

Gives you access to the broad talent pool

Resorting to external vendors is a real world-wide trend that has become the new norm in the IT industry. In these cases there will inevitably be challenges such as time zone differences and language barriers. It makes hiring in-house teams an even more intricate process.

outstaffing meaning

Alternatively, within classical outsourcing the client partners with an outsourcing vendor that takes full responsibility over managing talent and implementing the project. That’s why outsourcing rates include the cost of daily team management, overheads that the vendor uses to cover the salaries of other employees, and risk management. This explains why, on average, outstaffing rates are 20 to 30 percent lower than outsourcing rates. It just takes too many resources to invest in hiring, inducting, and training an in-house team. And there are always more projects than available staff members! The answer is outstaffing – hiring dedicated teams who work remotely on your project under your supervision, strengthening any ongoing programming efforts as they do so.

If you are looking for outstaffing services in Ukraine and Poland, contact Efisco. The client doesn’t need to seek out, hire, and onboard remote tech specialists on their own, as the vendor staffs all projects with its own tech talent. While your company can concentrate on the product delivery team. In the U.S., the practice of long-term but indirect employment through a third party would be called contracting or hiring a contract worker.

Zarttech supplies you with Senior IT Experts and Cybersecurity Specialists to join your development team on a fully remote, hybrid remote or on-site basis. They will work under your supervision on all projects you delegate to them. When a job formerly handled by internal staff is assigned to an outside firm, the process is known as outsourcing or contracting out, and may be handled by an outsourcer or outsourcing company. You can be sure of the technical expertise of your contractors.

It’s worth mentioning that in outstaffing, each tech engineer is recruited exclusively for the client, not taken from the bench. As a result, the client gets a perfectly-matching team member with the right type of expertise. Too many Outstaff service providers competing to maximize the revenue can exhaust the labor market and lower the entry criteria. That’s pretty much what is happening in the Ukrainian IT labor market. And like anything else in this world, all approaches have their pros and cons. Depending on the management structure, the outsourcing vendor commits to the quality of the outsourcing function.

What are managed services?

This is not a surprise since the IT outstaffing option is convenient both to a client company and IT specialists. While IT specialists get an opportunity to work on interesting projects without risking or having to be permanently employed, client companies get a far wider range of benefits. Staff augmentation allows you to solve specific one-time tasks as they arise. At the same time, the client retains the overall management of the project. The provider will not try to improve your systems comprehensively, but will simply fix your specific problem.


This model allows companies to control their costs and enable them to become more flexible when it comes to software development. The primary benefit of the model is that you get full control over your resources and pay not for features or hours, but for a team member who is working on your project full time. This is a complete outsourcing of support for your project to meet specific requirements without the need to hire in-house specialists. Typically used when there are not enough funds to hire and manage your own IT teams. You will benefit from predictable pricing, freedom from IT management, and the ability to focus on core business tasks.

Pros of outsourcing:

Sometimes, workers with particular skills are needed, the level of which does not matter. This may be the collection and processing of data, work with clients, basic copywriting, and similar types of work. Statistics show that over 57% of companies trust external specialists, and analysts predict that by 2027 the outsourcing market will have exceeded $405 billion in global share. It is also believed that outstaffing reduces corporate expenses by about 15%. Having Product and Project Management on the provider side also means having Ownership and Responsibly on software end product delivery so that the quality ownership is entirely on the vendor side.

ProCoders answered the call with a Staff Augmentation proposal that allowed the CTO management team at AxisPoint to manage the programmers ProCoders provided directly. This way, AxisPoint/VSimple saved both money and time on hiring. People work in exactly the same way as full-time employees. They perform their usual duties, often even in the office of the client company. But without unnecessary legal complications and without the risk of costs. If the employee does not fit, the outstaffer simply changes him for free, so there is no need to fire anyone.

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