Only those dev shops that passed through our high criteria and have proven success rates appear in our talent pool. We did it to ensure that we can find the best talent for our clients in the shortest time possible. But there are many other advantages for companies that choose to hire through YouTeam. It’s important to distinguish between outsourcing and outstaffing – you don’t want to hire an entire team where you can hire a single specialist or vice versa.

• Let’s start by taking a quick peek into the growth of the software development industry which causes an intense demand for IT professionals outstripping the existing supply.
• In this case, outsourcing development to a tech vendor is a time and cost-effective solution.
• Small companies and startups often lack the resources to hire dedicated teams of developers and want to know how to reduce development costs.
• Custom Software Development Company Innowise Group is a leading software development company headquartered in Warsaw, Poland.
• However, do not forget that each case is unique, so we recommend that you first consult with specialists.
• AS per Statista, most revenue will be generated in the United States (US$313.70bn in 2022).

Outsourcing companies are accountable for the ultimate outcome produced by their development team. This means that clients can reject the finished work if they are dissatisfied with the team’s performance, which is not the case with the outstaffing model because the client is in charge. Outstaffing enables software companies to hire more developers without going through a lengthy hiring process or begging for money from the CFO.

Outsourcing Web Design: Pros and Cons

The client rarely has access to the development team itself and those people who complete all the work on the project usually work on several projects at a time. As you can see, outstaffing and outsourcing have a common prefix – OUT. Outsourcing helps companies that don’t have money, time or a reason to assemble their own in-house team of developers.

Hiring a software outsourcing company will fully evaluate your demands, wishes, and budget and will make your project idea a reality. A dedicated team model is probably the most misunderstood within outsourced development service. First, companies realize the need for the services of a couple of developers, or maybe a whole team, for your software projects. From assigning tasks to monitoring the whole process, a project’s management can be found difficult by those who have never done or have not enough time to do that. Now that you know the particularities of outstaffing in software development, the next logical question is about the risks you may face while outstaffing developers.

Cons of outsourcing

In the Yourshore model, we custom recruit a team of fully dedicated devs with the right mix of skills to meet your specifications. We also embed the developers in your company’s culture to ensure they are fully aligned with your company’s goals. The best method to avoid this issue is to define all the main development tasks in a single shared document with full descriptions. The document should be prepared in a language everyone on the team understands without ambiguity, and the manager should welcome and invite questions on an ongoing basis. You should also monitor the team member’s performance to verify that each developer performs as expected. Outstaffing, as opposed to outsourcing, allows the client to directly monitor the performance and operation of the outstaffed workforce.

So, you don’t have to hire a whole new IT department, just describe your needs as detailed as you can to partner with a reliable company. Even if you have skilled resources in-house, they may not be able to handle all these tasks at once or deliver them in time for the next release date. Such efficient communication right from the beginning of the project is necessary to avoid unexpected expenses.

Migrating to the Cloud: How to Migrate to SaaS Business Model?

As the pandemic has blurred the difference between work from home, and work from office models, the inhibition towards remote or distributed development teams is vanishing. Outsourcing and outstaffing to remote and cheaper locations like India, Ukraine, Poland, and the Philippines are found to be more lucrative and cost-effective. Depending on your company’s needs, you can choose one or both of the models for upcoming programming projects. As mentioned above, in both outsourcing and outstaffing IT models, a company attracts a team or individual to work on a specific project/task. Also, in both cases, those developers are working on the project remotely.

Thus the client is ultimately accountable for any team success or any team failure. Of course, this is also the advantage of outstaffing, so whether you find this point, a Pro or a Con depends on your perspective. Outstaffing allows the client to manage and supervise all of the team’s operations and productivity. They control when and how the team works and can change direction at any time.

Key Advantages of the Outsourcing Development Model

At this stage, you should consider the ways to contact the team and the mechanisms to monitor the development workflow. You can communicate with the team through Google Meet, Zoom, and various messengers, but you should properly understand the project management approach that the company uses to gain results. Whether it is Agile methodology designed for flexible teamwork coordination or Scrum with its sprints, you may know it to determine the time of obtaining the final product. Imagine you’ve planned a large project based on complex technologies requiring the use of machine learning (ML).

This means you will be the one assigning tasks, checking the quality of their implementation, and tracking all results. Now when you know the difference, let’s talk how to apply this difference to your what is outstaffing business. Whether you need an IT outsourcing agency or it’s better to go with an outstaffing company fully depends on your needs. However, these lower rates do not mean less quality or worse expertise.

Outsourcing Advantages

The outstaffing software development team inherits the existing methodology, processes, tracking tools, and communication approaches. The repository, environments, and automation tools are usually on the client-side or administered by the client. As we already said, both outsourcing and outstaffing have their pros and cons. Outstaffing might be a perfect solution for those seeking more control over everyday tasks.

The reason is that, within the outstaffing model, hired developers are fully managed by a client as they would be managed as a staff. Outsourcing is about getting tasks done, whereas outstaffing is about extending the team and working together for the long run. However, the main difference between outsourcing and outstaffing is that outstaffing hires experts from other firms to work on the project under the control of the business owner. On the other hand, outsourcing passes the web development process to a third firm. The hired professional becomes an employee of the outstaffing software development company.

Outstaffing

The type of offshore development highly depends on your project needs. If your team is having trouble solving a couple of tasks, then outstaffing is preferable. Also, it is the best choice when planning to build a project from scratch.

What is outsourcing?

Small companies and startups often lack the resources to hire dedicated teams of developers and want to know how to reduce development costs. Well, they may rely on outsourcing software development services from freelancers and agencies. Therefore, it is important for them to know the cost of hiring developers vs the cost of outsourcing software development.

Outstaffing Company vs Outstaffing Agency

With that fee, the informational technology services company pays the team member’s salary, benefits, bonuses, equipment expenses, etc. By implementing the outstaffing model, you save money on two fronts. First, you have fewer recruiting costs than you would hiring locally-based developers since the vendor is responsible for finding and staffing your team. In very short terms, outsourcing means delegating the whole project to another company. In this case, you can be minimally involved in the process and only communicate with the project manager to share your requirements, ideas, and suggestions.