Outsourcing vs Outstaffing

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If you are looking for an outsourcing IT company, you are on the right website. If you are here just to read an article, I hope it will be interesting and informative for you!

You will certainly agree that any business process needs highly qualified personnel, however, not all companies can afford to hire a full-time team, and let’s be honest, not all projects need that. 

Most probably if you are reading this post you are looking to hire a subcontractor. Do you know the difference between outsourcing and outstaffing? Yes, both include remote work, however, the most significant difference lies in management and responsibilities. 

 

Outsourcing | Cost-cutting | Quality | Risks

Outsourcing means that you hire a team, let’s say of web developers, that will create a website based on your requirements. They will do everything from the ground up, they probably already have designers, a business analyst, project manager, and developers. You just give your ideas, vision, check the progress, concentrate on your business, and pay invoices. Sounds perfect, right? When the project is completed, both parties are happy and will probably keep good relations and contact each other when needed. This is obviously one of the best solutions for small and medium business, when the owner does not have to manage a team of tech specialists.


Among commonly outsourced IT services are:
  • Web/mobile application development (Hello that’s us )

  • Hosting

  • Software development

  • Tech support

  • Database management & development

  • Email security

  • Threat protection

IT outsourcing is an agreement between a company that requires assistance in regard to IT services and a company that provides those IT services, it can be onshore (within your own country) and offshore (vendor from another country). Offshore outsourcing has traditionally been pursued to save costs due to lower labor rates. 

Considering outsourcing option you should keep in mind the following risks:
  • Cultural and language barriers;

  • Time zone difference;

  • Slower turnaround time

Another risk that may come to mind is lack of control, however, having a reliable outsourcing partner you can be sure that all your requests will be answered in a timely manner and you will have access to project management tools, will be able to control the process and see the progress, what is more, will know who is working on your project and meet at least key team players. Even if you decide to hire a company from across the street, taking into consideration the current situation in the world, they will probably be working from home anyway. 
When thinking about outsourcing, you should not see it only like a month or two contract, you can find a truly trustworthy partner who will help you grow, implement new business ideas, relieve your main business pains and your cooperation may be decade-long. 

 

Outstaffing | Responsibilities | Control | Challenges

It is not difficult to guess what the origin of the word is, so the definition is pretty straightforward. It is a type of remote employment when the hired person carries out all job duties, works on your project full-time but is officially employed by another company. So you just out-staff. 

In this case, you are THE BOSS and a person you hired works according to your schedule, under your management, and according to your rules, and to some extent, you are responsible for this employee -sick leaves, vacations, days off, all that will be agreed with you but at the same time, it all becomes your pain, especially sick leaves when the work temporary stops.

Often you may need to provide your employee with a computer, laptop, tab, printer or whatever may be needed for work. Business trips are also a very common practice in outstaffing, and even more, you may ask your employee to relocate to your country /state/ city. If you are a small business owner, will you be happy to take all those responsibilities and manage a hired person yourself, answer all questions and requests, deal with vacations and business trips? Probably not. On the other hand, if you already have an in-house team of, let’s say developers, with a manager or a team lead, do not want to rent a larger office and hire another in-house specialist, save some money on salary, office and tech supplies, outstaffing may be a very good solution for you.

Outstaffing works best for larger companies and projects when the client has tech expertise on their side, preferably an in-house project manager or at least a team lead and wants to have additional team player/s on board.

 

To Make It Clear

OutsourcingOutstaffing
Small and medium businessLarge Enterprise
Small and medium projects/ SupportBig longterm projects
No tech and project management expertise on the client’s sideTech expertise and management on the client’s side
Full or part-time employmentUsually full-time employment
The software supplier takes over the development processThe software supplier leases out required personnel
Benefit from the entire team of professionalsMaintaining an in-house team and bringing individuals to fill the required positions
Less management efforts needed/ limited control Taking responsibility and management of the development process


Hopefully, I was able to answer some of your questions and explain the main difference between those two so similar and so different models. 

We are happy to hear your experience in outsfaffing and outsourcing and of course will gladly help you if you are looking for web development professionals. 

The link to contact form is below.