IT outstaffing services have become quite prevalent in recent years. However, each outstaffing model has its pros and cons, and you should really consider what works for you. Software development outstaff and outsourcing are two models which are very often misleading.
In this article, we will discuss the difference and judge which one is better: outstaffing vs outsourcing.
What Is Software Development Outstaffing?
There are many reasons why you would want to hire a software development outstaff team instead of developing your product fully in-house. Some organizations prefer to outsource their work, while others face staffing challenges. Regardless of your reason for hiring a development team, you need to find the right software development company for your project and deliver the best product possible to customers.
Outstaffing is when you already have in-house members, but they are not enough. To make it easier – you don’t buy projects. Instead, you hire. The only difference is that you hire external talent.
Advantages of Software Development Outstaffing
Outsource vs outstaff is a very tough argument. However, we will mention that later.
HR burden is reduced
Outstaffing greatly simplifies personnel management by removing the need for administrative tasks that are not the responsibility of the outstaffing company. Vacations, sick leaves, and salary payments are examples of these types of issues that should be handled by the partner company instead of yourself.
No hiring issues
When an employer staffs a job with an outstaffing company, they don’t have to worry about finding the right candidate. The out-staffing company takes on the full responsibility of finding the right person for the position and then also ensures that the candidate is easy to work with, understands the needs of this organization, and has a good skillset.
In most cases, hiring an external developer would cost you much less than hiring an in-house programmer, since you will most probably resort to developing countries and avoid paying for social securities as well. In some cases, you might save up to 50%.
Outstaffing works with an in-house team
It is important to have a solid team at the core of your business, and you can outsource the less integral parts of your business model to free up time and money for those who can provide better service.
Using external agencies and freelancers will allow you to concentrate on development while letting other individuals handle the tasks that are not your core responsibility. Of course, you can assign even hard tasks to remote workers once you have built trust in them. This might take some time, however. It would help if you still had to have an in-house team to rely on.
Outsourcing main drawback – control
One area where outsourcing falls short is the control part. Unlike the outstaffing model, here, you have no control over the tasks. Project managers are an external resource, and you rely entirely on your partner.
This might be a perk for some people, but if you have bad luck, you can end up paying a lot and receiving nothing back.
IT outstaffing services
IT outstaffing services have become very popular over the last few years. Many agencies have come to realize that even the biggest knowledge base and experience might be worth nothing unless the client is happy.
Since outstaffing is managed by internal project managers, the final product will be the desired one, and there will be no surprise. 48% of companies outsource services due to a lack of in-house talent.
Is outstaffing worth it?
It depends on the company’s needs. Most companies outsource tasks, and this model definitely works better in the short term. However, for long-term partnerships, outstaffing might be the better deal. You will have an onboarded team member from some thousands of miles away. They will work alongside their colleagues, and they will get better in time!
IT outstaffing services are on the rise. Hiring long-term employees from agencies are the new trend because it is not only financially sensible but also helps businesses hire in-demand professionals who can be a helping hand in the very long run. While you cannot replicate the communication between in-house team members, the pandemic has shown us that having the right collaboration tools might neglect the distance factor.