Content
Outsourcing and staff augmentation in software development 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. Expanding the IT staff is an external hiring strategy to recruit skilled professional tech talent on a temporary or permanent foundation to replace necessary positions on that team.
In fact, more communication is needed because most of the teams are working remotely. Once you sign an NDA, the rights for the code written become yours. However, during the building phase, you won’t have much access to the code. This is because the software outsourcing company needs to secure it against possible data theft. Normally you will be presented with demos of what has been done during a certain timeframe.
Outsourcing vs. Outstaffing: A Comprehensive Comparison
When you hire in-house employees and outstaff talents, you may struggle with underperformance. That is because outstaff team members can lose motivation since they do not obtain various benefits and bonuses typical for in-house teams. Cooperate with reliable https://globalcloudteam.com/ outstaffing companies that take care of all such nuances and provide their employees with a great benefits package. And since finding and hiring these specialists in-house is often challenging, IT outstaffing services can really come in handy.
- A lot of people believe that offshoring is only for short-term tasks.
- You have full influence over the consistency and tempo of the project, with clear access to every part of the team.
- Ask former or current clients about their satisfaction with the vendor.
- This misconception is widespread because both methods imply the process where customers entrust certain work to remote employees.
- Next, companies reduce hiring costs by tapping into markets with affordable and talented IT experts from Eastern European outstaffing companies.
- Whether you need IT outsourcing or would rather go for outstaffing depends entirely on your needs.
What is more, a vendor usually owns and takes care of the equipment & workspaces of your team . Your outsourcing service provider is also able to mix people between teams so they can work on multiple projects simultaneously. Unlike this, the outstaffing team usually works with only one client. Tech companies tend to outsource minor and non-core software development projects due to the lack of in-house resources. In this situation, they don’t control the development process but seek the ultimate result. Whether you are going to outsource or outstaff, the procedure of hiring a software development company is similar.
Phase 5. Hiring: Onboarding and HR coordination
Many businesses have turned to the outstaffing model over the years, and these are their primary motivations. Working with an outstaff team, you’ll be providing them with access to sensitive corporate information, project documentation, software, etc. When outstaffing employees, taking security measures and drawing up a detailed NDA are highly recommended. Over 7 years of work we’ve helped over 150 companies to build successful mobile and web apps. Western companies tend to outstaff from Eastern European countries.
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. Now we’re ready to explain the difference between software development outsourcing vs staff augmentation in more detail. The main thing is to choose the right contractor or specialist, to whom you are going to delegate certain responsibilities, to see all the advantages of outsourcing or outstaffing.
What Is IT Outstaffing? What Will I Get from an Outstaffing Company?
Schedule a free introductory call with an advisor – a personal contact at the company. They’ll make sure the talent is matched perfectly to your needs. Ukrainian technology talents have a mentality similar to that of the West, so communication goes smoothly and without problems. But these disadvantages can easily be foreseen in advance and secured with the appropriate conditions in the contract.
Developers from Eastern Europe are affordable, experienced, and known for delivering top-quality work. Besides, we are fluent in English and are comfortable working with Western clients. Both outstaffing and outsourcing are viable solutions for you, depending on your business requirements. Here’s how to decide if you need IT outstaffing or outsourcing. Outstaffing is ideal for startups and companies that seek developers with specific skills to work with their existing teams.
Outsourcing vs. Outstaffing
If necessary, you can easily add to or disconnect new specialists from your project with a remote staffing agency. So, if you require a UI/UX designer for three months, you can get one for this period of time. If you have to hire a developer until the project’s end, you can get him or her as well. Outsourcing service providers often works with multiple clients simultaneously. Your development team might be managing a bunch of different projects, which could reduce efficiency and product quality. First, you don’t have to waste resources choosing a professional to work for you.
The more you are prepared for IT outstaffing, the greater benefit it will bring to your business. Third, companies suitable for IT outstaffing are the ones seeking to avoid any given pains linked to hiring employees. Outstaffing vendors are the ones fully responsible for hiring-related processes. Software development outstaffing necessarily includes sharing confidential information and sensitive data. Yet, when you provide such data to an outstaffed team, you often do not have total control over the security channels remote IT professional’s use. Respectively, this can result in data breaches and other security-related incidents.
How outstaffing works
Agreeing to hire outside staff also means that you will be responsible for overseeing the speed, quality, and implementation of completed work. You only pay for work completed and hire a company when it needs to handle what is outstaffing a certain business process. When the project is finished, you can lay off the company until you need them again. The team takes full responsibility for the technical part while you just organize the process.
