What is IT Outstaffing and How It Can Help Your Business

Another question that causes a little misunderstanding in software development is about IT outstaffing and IT outsourcing and how they differ. Both of these terms have come in the IT sphere and considered relatively new ones. If you’re considering joining forces with a remote development team, one of the motivations is often that remote developers are more friendly priced than domestic developers. Then go for highly skilled software developers who have mastered your languages or framework. In an outstaffing scenario you can often get the best talent for relatively low(er) rates. Nearshore outstaffing, on the other hand, involves hiring professionals or teams from geographically closer countries and usually in similar or slightly differing time zones.

• How they are similar, and how to distinguish outsourcing from outstaffing.
• In this case, outsourcing development to a tech vendor is a time and cost-effective solution.
• Something that seemed like a no-go years ago turns out to be not so crazy after all.
• Now that we have covered the advantages of both these models, its worth mentioning some of the pitfalls for each.
• This can include anything from data entry, and technical support to more specialized IT functions such as software development or systems administration.
• The fierce market competition requires the IT business to meet the challenges at the highest velocity, which calls for a special approach to organizing a project team.
• At the same time, the IT services provider acts as the official employer that pays benefits, bonuses, equipment, holiday pay, and employer taxes.

For start-ups and organizations where there is no in-house development team, but where there is the desire for and budget for software development, then outsourcing may be worth considering. In recent years, outstaffing in particular has become very popular. This is because of its favorable price tag and productive nature, but more importantly, it is an effective and economical way to hire new employees to augment the software development team. Additionally, there is always the risk that an outsourced provider could take advantage of the situation and charge more than what was agreed upon or provide subpar service. Finally, there may be legal implications in some countries around outsourcing IT services, so it’s important to check with a lawyer before proceeding. You can visit the website IT outstaffing company Talmatic to hire professional developers.

Outsourcing vs. Outstaffing: Key Differences Between the Models

It showed me that even within a flat organization like CodingChiefs, there are numerous processes and information flows. This newfound awareness has been helpful in bringing our company to the next level of Information Security. Following the preparations, rigorous three-day audit is conducted to ensure all areas are thoroughly covered.

The company has 15+ years of experience in digital transformation and software innovation, most notably open source cloud-native programs. After the client shares their thoughts on the CVs of potential team members and approves some of them for further communication, the recruiter schedules calls with the selected candidates. It’s conducted by the client’s managers with an aim to see the cultural fit of the candidate. Then comes the time for a technical interview with the client’s tech leads. If an interview isn’t enough to make a final decision, clients give tests to ensure the suitability of the candidate.

Pros and Cons of the Outstaffing Model

The world of outstaffing offers a rich variety of opportunities. By considering these factors, you can find the best outstaffing strategy that aligns with your business’s current needs and positions it for future growth and success. At CodingChiefs, we prioritize transparency in all our operations.

A big concern with outsourcing projects is that the quality may not be the best. The software development project may not be the same quality as if your in-house dedicated developers completed it. The out-staffing model offers you more outstaff hiring flexibility than other 👉 team extension models 👈. You are able to hire, switch or remove experienced developers as you see fit. To help you make a decision let’s discuss the pros and cons of Outstaffing vs outsourcing.

When are managed IT services effective?

Outsourcing and staff augmentation in software development (outstaffing) mean different approaches to who and how will do a particular tech task. And before we explain this any further, we need to provide a few definitions of terms we’ll use throughout the article. It’s challenging to cover outsourcing or outstaffing the development process and its pros and cons fully in one piece. So let’s look under the covers of outsourcing and product development services based on what we know about the IT sphere and IT market. We’ll also go over the outstaffing practice further in the article.

This is not like with in-house employees where you need an accountant to take care of payroll. Plus you do not have to worry about hidden costs with this model. You can add a developer who specializes in Artificial Intelligence, Machine Learning, or IoT to your dedicated team in a snap as opposed to waiting for a long time. We are implementing innovative digital product development methods to make this process fast and consistent.

What Is Outstaffing?

Your involvement in the development process is high, which implies you need a supervisor to monitor and adjust teamwork. So it might be less expensive to keep the project in-house or use an outstaffing company to supplement your internal resources. When you outsource a project then you have no control over how it’s done. You only get the end result and it’s either what you wanted or not entirely. Of course, you can ask the outsourcing company to fix any issues but then you run up the overall cost of the project. With outsourcing, you are not hiring people to join your team.

This frees up time, money, and resources for you and your company. You may decide to turn to an Outstaffing company if you are looking to add skilled developers to your in-house team. They can help you hire remote developers for your team to help move projects forward. During the active collaboration process, the client and the outstaffing vendor have mid-term sync-up calls and share feedback. The client can also consult with the vendor about the practical questions such as remuneration or processes set-up.

What is the Role Distribution in the IT Outstaffing Model?

A great, time- and cost-saving solution if you have been wanting to scale up manpower for a long time in order to really get that one development project off the ground. Moreover, working with remote developers can lead to innovative solutions to software challenges. Solutions that your own team may not have thought of before. We are here to match your needs with the expert remote software developers.

Let’s start with the benefits of outstaffing vs. outsourcing. And then we will move on to the advantages of using outsourcing. Next, the recruitment process is held on the side of the outstaffing vendor. Their recruiter uses candidate portraits and makes pre-screening calls with suitable candidates. 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.

Pros of Outsourcing

We help startups, as well as large international companies, continuously grow with the help of IT staff augmentation. This enables companies to focus purely on business and product development, leaving HR management to professionals. Although the last few years brought quite a few challenges, it was also a period of reflection. Because let’s be honest, how long have you had to-do’s on your list that are screaming to be picked up, but are simply lying around. Not because you want to, but because you just don’t have the right (amount of) knowledge and expertise for that one software development job in house?

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In this case, your IT services vendor can quote you what it will cost to work with their IT resources for the duration of your project. They handle all the management of their team resources, with a client liaison that helps work with you on a business plan. There are two outstaffing models for paying for and managing your outstaff team. We offer transparent rates, and you only pay for what you get.

If your company is not very much technology-focused and you don’t have in-house professionals to oversee the work of the development team, then outsourcing can be a better idea for you. On the other hand, if you have well-defined processes and a proper management to handle the remote team, then you are welcome to stick with outstaffing. However, each case is unique, and it’s always a good choice to consult with the experts first. Speaking about the tech area, a development team can be employed by another company to perform testing, product management, maintenance, and support, along with software development outsourcing. The outsourcing model also applies to different technologies, and an integrated software development function.