It’s best for seasonal work, and it won’t suit those who want to build the entire project from scratch. They may be in a different location and from a different company, but they will be working as your own employees. You will communicate directly with your auxiliary team, distributing tasks and managing them on a day-to-day basis. The outstaffer company takes care of all the documentation, from the registration of vacations and sick leave to the writing of reports.
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. A remote team is focused on finishing the task and giving you the best quality. This is the reason why outsourcing companies pay so much attention to figuring out the project goals and conducting a discovery phase.
What is IT Outsourcing?
However, they will bill you for these things, and you will be responsible for paying them. It’s an arrangement that can work smoothly, but you must keep your HR department apprised of your outstaffing development plan and ensure the engagement rules are clearly defined. Additionally, any overtime work or changes in rates are the responsibility of the client, not the outstaffing company.
- The third-party company provides the client with a team of the most skilled and self-managed experts suitable for their IT project.
- As we have built a clear workflow and always adhere to certain standards in work, we never involve freelancers in projects.
- Here are the main types and benefits of designing an MVP in software development.
- This guide will help you to find the right software developer outsourcing company for your needs.
That way, the client is able to pick the best-in-class talent pre-approved by the provider. You can decide based on the needs of your business and the required technical component, and it doesn’t matter whether you have a mature business or a startup. If your company is not technically oriented and there are no in-house experts who could lead the development team, outsourcing is more suitable for you.
Benefits of Outstaffing Model for IT
Even with an in-house team, it makes sense to outsource some aspects of development. You get a dedicated team that is focused on a single project or routine non-essential tasks while your in-house staff can continue with core activities. And if you don’t have an in-house team, but your business needs an app – it is worth trying to outsource app development.
But if you’ve never been in the shoes of a project manager, then it can be viewed as a disadvantage. There are two outstaffing models for paying for and managing your outstaff team. 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.
Outstaffing Disadvantages
Let’s examine the key criteria for choosing the appropriate models of
cooperation with software outsourcing companies. To turn a great idea into a working digital product, you need the right people on your team. Qualified candidates in IT are not very easy to find and, if found, to keep on your team. Instead of building an C# Web Development expensive in-house team, many companies opt to outsourcing and outstaffing (IT staff augmentation). • When outsourcing, the contractor or staff is usually subcontracted. In the case of outstaffing, the staff is registered with the contractor company, which searches for employees and ensures their sufficient skill level.
That way, the client retains full control over the project outcome, without being distracted by other aspects of team management. To put it simply, outsourcing is delegating projects to a third-party company with the required resources, qualified team, and equipment. As the importance of IT has grown, the companies of different industries open the advantages of contractors that provide high-quality software development and other services for relatively low costs. Yet, the primary task of outsourcing is the ability to use all resources to full-scale and take directions to introduce or develop the new focal business goals.
Outsourcing IT Model: What is it?
Companies mostly outsource web development services, accounting, and marketing. It is believed that software outsourcing boosts small businesses’ efficiency and expertise. We will analyze the details of outsourcing vs outstaffing and explain all the terms of offshore development. You will also learn how to choose the best offshore development model to help with your projects.
The core idea of outstaffing is to escalate the size of the existing team of the partners in the shortest time possible. When choosing a location for outsourcing software development, consider factors such as tech stack, hourly rates, time zones, and cultural differences. Even things like methodology or workflow processes differ from country to country, which can also be a challenge. It’s essential to work with a company or freelancer that shares similar work ethics and language to ensure seamless integration and communication.
Cons of Outsourcing IT Services
However, there’s always a possibility of hidden costs that you should consider when opting for outstaffing software development. These costs might include fees for recruitment or training of the outstaffed developers. Our own company, YouTeam, could be a time-saver in this situation. We operate as a marketplace for startups on one side and development companies on the other.
The client has no say when it comes to SDLC and is excluded from the communication with the team as well as the team formation process. In fact, the client has no way to know what happens behind the scenes of their outsourced project. The client only gets access to the outcome of the team’s work, such as the code repository and IT infrastructure. On the flip side, the client rarely has the opportunity to intervene or control the development process. Costs can soar, in comparison with outstaffing, if the scope of the project is not clearly defined and the prices for outsourcing software development are usually higher than outstaffing. Outstaffing is extending your team with remote employees officially working at your outstaffing provider location.
Cons of Outstaffing
One of the main reasons why companies choose the offshore development service is to reduce cost on development. This is especially relevant for countries with high development cost. A remote developer or a team can start working on the project almost right away. However, software outsourcing will require additional preparation.
With the outsourcing development model, you won’t have to manage your development, but you also won’t be able to control it and track every step fully. Your projects probably won’t be the first your team is working on together. This certainly increases the chance that the development process will go smoothly. According to the National Outsourcing Association survey, cost savings (35%) and improving customers’ experience (23%) are the top reasons why companies choose to outsource.
Why Businesses Prefer Outsourcing and Outstaffing
In case you have your own staff but need to work with remote specialists and build processes, then you can turn to outstaffing. So, the biggest difference between outsourcing versus outstaffing development is who plays the role of manager over the team performing your assignments. Typically, for outsourcing, this role is taken on by a manager who is a part of the team you are hiring. On the other hand, the outstaff model only works when the client controls the extended team.