There are many benefits that you can reap from outstaffing. On the condition that you have found that most of the above-listed points are true for your company, it can be reasonable to implement the outstaffing model. Your workflow is smooth and well-tuned, and you have all the scope of tools and solutions needed for efficient communication and task management. Your outstaffing partner will stand by your side and assist you with all operational and some project-related issues. Now, as you have a general idea about outstaffing, we would like to dig deeper and consider in detail the way in which the outstaffing model works. Explore the possibility to hire a dedicated R&D team that helps your company to scale product development.

• You can have full control over your project since the project manager will be located in your own company.
• This enables companies to scale up efficiently without being limited by financial commitments or physical resources.
• You don’t want to trade quality for price, but outsourcing often allows you to get the best of both worlds.
• In comparison to an in-house team, an outsourced team doesn’t need monthly payments, a workplace, or management.
• Although they involve hiring a foreign employee, these two concepts have significant differences.
• There are no problems if you need to adjust the size of the extended team or the number of tasks during the development process.
• Having outstaffed specialists in a team, you discuss with them some ideas sharing confidential information.

In a legal company-employee relationship both sides must be protected. Thus, there is no way a business will take on a new employee just for a four-month project. For when the project ends, the company will have to keep the employee on the bench which is unreasonably expensive, or fire them which is illegal in this specific example. You hire a team for a specific period of time to solve your problems. A pleasant bonus — the solution architecture and project management are on the hired team’s side.

Outsourcing Advantages

For example, the client may need to augment its team with three senior JS full-stack developers and one senior automation QA engineer. You’re an insurance company that requires a compliant customer relationship management platform to manage your client’s data and process claims more effectively. However, your tech department is either too small or too busy to deal with end-to-end development. Naturally, you would like to have a compliant and reliable solution without spending valuable time on searching and hiring skilled and experienced developers.

This is why you will maintain a high speed of delivery and will take the product to market faster. Alongside these advantages, you should also compare the disadvantages of outsourcing product development. 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. Outsourcing company/vendor — a business dealing with partial or full-cycle product development remotely.

What is outstaffing

As the industry is growing, people all across the world are becoming competent in various streams of work, such as software development. A company that is unable to find the required talent in its country can always look for competent individuals abroad. Outsourcing involves delegating product development to an outsourcing vendor’s team. When hiring an employee, you may only have access to a small, local talent pool. Many companies have found that outsourcing gives them access to talent in other parts of the world.

In today’s turbulent market, companies are constantly looking for different ways of keeping a competitive edge while reducing business costs. At this point, IT outstaffing is the approach to focus on because it brings Remote In-Sourcing® closer to your business operations. • With traditional IT outsourcing, communication is already established. The manager and employees know each other, and they have established a working relationship. During outstaffing, the customer has to build those relationships from scratch.

What Is Software Development Outsourcing?

This means that finding the right team or individuals can be done quickly and without the risk of running into poor quality specialists. In fact, you can get a team of 3 or a team of 30 faster in Ukraine than anywhere in Europe. And you can dissolve it quickly, in case your priorities change.

Plus, you assign tasks and monitor the progress yourself, so you can intervene at any time and modify the development progress. The in-house hiring process may take around 66 days and will cost you more than average. Partnering with an outsourcing agency, you can have a developers team with the needed skills within a few hours. This way, you’ll start product development cycle earlier and launch the solution faster. The good thing about outsourcing is that you’ll be assigned a dedicated project manager as your first point of contact.

Outsource vs Outstaff Your Software Development Project: What Should You Choose?

The efficiency and productivity of employees depend on the work environment, so make sure that the outstaffing agency provides employees with everything they need for work. Outstaffing is especially popular for small and medium-sized businesses, where the number of employees doesn’t exceed more than 100 people. In this case, the extended team might come to help with software development process, bringing certain domain expertise, covering the skills gaps and supporting quality assurance, etc. An outstaffer is not a freelancer but a specialist who works for a contractor. Thus, hiring outstaffed employees means hiring them from an outstaffing company to work on a specific project. The specialists will be part of the client’s team till the end of the project.

Outstaffing, in turn, means collaboration with a specialist hired by a recruiting agency. There is also a difference in price, salaries, responsibilities, and https://www.globalcloudteam.com/what-is-conventional-and-smart-outstaffing/ management teams. Any company needs good specialists, but not everyone has all the necessary capabilities and resources to recruit and maintain a vast staff.

Differences Between Dedicated teams and Outsourcing

Outstaffing is another way to manage the workforce on your project. Your company leases professionals to work exclusively on your project. Workers receive payment through an outstaffing agency, who solves all workforce-related issues as well. Outsource vs outstaff, many companies gave cost as a primary reason for relying on external teams. By working with external vendors, companies are able to save overhead costs for in-office workers, like electricity. Plus, countries like Ukraine have low hiring costs as compared to countries like the United States and Europe.

It means that the client company actually manages all working processes. Its team leads or project managers assign tasks to outstaffed team members and supervise their execution. The ability to manage a workflow can be crucial for many companies that prefer to have everything under their complete control.

Cloud Native Solutions.

All-In-One HRM software for managing your company’s talents, time, performance and culture. These two concepts legally secure the existence of outstaffing in Ukraine. You will have direct access to the remote https://www.globalcloudteam.com/ or offshore team with the help of easy-to-use web tools. • Your HR department can’t keep up to cover the need in high-quality specialists. • The bulk of the company’s expenses are personnel costs.