At the same time, our customers work in close cooperation with us. But they easily control the project, make comments and edits, ask questions, and receive full reporting, since they have access to any tool or project management system we use. We believe that clients, if necessary, should be able to communicate not only with the manager but also with any member of the team, whether in Slack or on general calls.
- For outsourcers building the entire turnkey app for you, ask for the references of at least two software applications they have launched successfully.
- There will always be work for outsourcing programmers, and the only thing left to do is to keep on being inventive, to be on the lookout for and meet the market’s needs.
- Depending on your company’s needs, you can choose one or both of the models for upcoming programming projects.
- Provide clear guidelines, task scopes, and expectations to ensure they can be productive as soon as possible.
- Outstaffing is ideal for startups and companies that seek developers with specific skills to work with their existing teams.
Both of these terms have come in the IT sphere and considered relatively new ones. To build two SaaS companies in the Bay Area, I’ve leveraged offshore development teams to a degree of success. Outstaffing can be a great aid for a company that doesn’t have enough resources to support in-house employees. Flexible and under your control, outstaffed workers will bring benefits to your company.
Cons of outsourcing
Outsourcing can act as a catalyst for rapid expansion and market penetration. It excels in specialization, offering cost-effective access to experts in niche areas like distributed databases or financial tech without long-term commitments. In fact, the client is responsible for keeping track of assigned tasks, managing the progress, communicating with a developer or a team of developers, and accounting. 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. It can be said that offshore developers become literally remote in-house developers for the customer’s company for the whole period of cooperation with offshore agencies.
Increasing demand for new technologies with the pandemic deepened the talent crisis and widened the gap between talent supply and market demand. As per reports, recruiting qualified developers is going to be the biggest software outsourcing and outstaffing recruitment challenge in 2022. All this points to the war for software development talents, which is getting intensified day by day. • With traditional IT outsourcing, communication is already established.
Outsourcing or Outstaffing? Which One to Choose
The term outsourcing came from the phrase outside resourcing. It means an agreement between companies when one hires another company for a planned activity that is usually done internally, sometimes transferring its employees. In most cases, you will only interact with a project manager from the outsourcing team, whom you’ll provide your deadlines, updates, and requests. In this part, let’s take a look at the areas where outsourcing and outstaffing part ways.
For example, a fixed price model necessitates strict requirements and does not
allow changes to the project. In contrast to this model, T&M provides
complete flexibility in development, and therefore the scope of your project
will change dynamically. As a result, we believe that integrating your ideas with the
contractor’s experience in the form of a suitable cooperation model can
significantly boost your chances of prosperity.
Outstaffing Pros:
Take the time to make a small research on the company you find interesting, collect reviews from their clients, and book an intro call to make sure that they can provide you the service you need. By outsourcing, you can build an external tech stronghold of your organization without staying in touch with the team that executes your project. Instead, the client typically receives updates through an account manager or project manager without being able to personally gauge the situation.
The benefit is that you always know the exact amount you will pay monthly, and you’re spared the management hassles of administrating your outstaff team. Maintaining a business means constantly searching for talent and opportunities. While opportunities occur through effort and chance, talent seeking is a task one can manage. But, as everything comes with a price, hand-picked in-house talent may cost too much. This is where outsourcing, offshoring and outstaffing models come in handy. The outsourcing agency assigns a dedicated project manager that acts as an intermediary between the client and the developer.
Migrating to the Cloud: How to Migrate to SaaS Business Model?
Waverley Software, with 28 years of experience, 230 engineers and over 150 completed projects, is equally proficient at both models. If you are hesitant and would like expert help to select the right scenario for your business, our experts can provide a consultation and come up with the most beneficial solution. On the other hand, outstaffing is when you hire employees within your own company who specialize in certain areas such as marketing or sales. Outstaffing gives you more control over how your business operates because these employees report directly to you and work closely with other departments within your organization.
So, if the lists of tasks go, it becomes clear it’s not a one-person job. Some people are gifted with either technical or managing skills. Nevertheless, entrepreneurs underestimate the complexity of hiring an outstaff team. They believe that they’ll be able to communicate, manage and assign tasks to the remote staff, and manage their business at the same time. With the outstaffing service model, you are in charge of managing the development process.
Common Challenges in IT Outstaffing and Ways to Overcome Them
The client will have full control over the IT team or an individual during the whole contract period. Usually this model results in high-quality code and fast completion of the project with no extra charges. Software development outsourcing has been in the public eye for decades. According to Statista, IT outsourcing accounted for a combined revenue of 351 billion U.S. dollars in 2021 and due to the COVID-19 lockdown, the demand for outsourcing services has increased even more. Both business models have much in common, providing significant benefits and substantial cost savings. When outstaffing, you completely control their work; they do not receive assignments from the outstaffing company but from your company’s manager.
Outsourcing and outstaffing are well-known terms among IT recruiters and professionals in the world of tech. During the pandemic, both of these industries are experiencing unprecedented growth. When you have a specific plan and a dedicated team that helps you boost your product, fast growth is inevitable. However, they will bill you for these things, and you will be responsible for paying them.
Advantages of Outsourcing Compared to Hiring In-House
Do you want access to this worker as a manager, working with them and controlling their workflow daily as if they were a member of your ongoing IT staff? Now that you’re equipped with knowledge of outsourcing and outstaffing models, you’re ready to choose one that suits your business goals. Remember the differences between the models, as well as their benefits and drawbacks. Clearly define your goals to pick the right model for your company.
