Outstaffing vs Outsourcing: What Is More Important in 2021

Businesses often reach a point in their development when they hire remote professionals to fulfill their work requirements. Hiring skilled staff for the project may take months, financial losses, and missed business. Those can be remote employees or third party suppliers. Either outstaffing or outsourcing can meet the company’s expectations, depending on the type of business and goals.

Almost all UK and US-based companies who deal with software use India and Ukraine-based software development companies’ outstaff services. The largest tech companies, such as Facebook, Google, and Oracle, use outsourcing strategies. The global IT sourcing market currently surpasses 85.6 billion dollars. 

Here is a quick comparison between the outstaffing and outsourcing models.

Outstaffing Definition
Photo by Austin Distel. Source: unsplash.com

Outstaffing Definition

Outstaffing is a type of contracting when a company hires a dedicated team of professionals that work remotely at your command. In short, you hire a remote team that works together with your in-house programmers and employees. You control your team’s workflow and productivity and assign them tasks according to your requirements. Your in-house managers can also manage this extended team.

The software outstaffing of developmentcompanies helps to find professional programmers, employ, and administer them.

Pros of Outstaffing

  • You will get more control over the development process because you are directly managing the remote team.
  • Outstaffing usually tends to be a budget-friendly option than Outsourcing.
  • Companies choosing outstaffing services usually enjoy development cost savings.
  • You are free to change the number of employees according to the project’s requirements.
  • The in-depth recruitment process will help you to understand a candidate’s skills and experiences completely. It is essential for building a great team in the long term.

Cons of Outstaffing

  • You need to possess additional skills and qualifications to manage a development team or hire a professional to make it possible.
  • There is a possibility of miscommunication if your staff can’t speak English.
  • In smart outstaffing, you are much more responsible for the outcome as you are the one who manages the team.
Outsourcing Definition
Photo by Austin Distel. Source: unsplash.com

Outsourcing Definition

It is a kind of business relations when one company hands over control of a project to another company to complete a task. Outsourcing providers usually work on project-based corporation’s models. Thus, they have their own employees responsible for equipment, training, wages, and workers hiring. A client company gives them a task and usually doesn’t have access to the development team.

Pros of Outsourcing

  • The company is 100% responsible for building the product according to your requirements.
  • You only need to provide clear instructions for the project, and the outsourcing company will take care of the management side itself.
  • You don’t need to search and hire the developers directly. The outsourcing company will act as the official employers for people working on your project.
  • Outsourcing is much cheaper than having in-house developers, mostly in countries with high salaries.
  • Outsourcing often provides a faster development process.

Cons of Outsourcing

  • Less responsibility and management headache results in higher cost, as the outsourcing company usually hires a manager for your project.
  • Since you are not involved in the development process, you will have less control over your product’s development.
  • Again, in most cases, your outsourcing company’s members are not native English speakers; there may occur certain misunderstandings that might result in project failure.
  • Since your chosen company will have access to confidential information, they may sell your sensitive data or code to third parties. Make sure to sign a non-disclosure agreement before starting a project.
  • If you don’t choose the company wisely or carefully, it’s possible to get a much worse work quality with remote developers.
What Is More Important - Outsourcing or Outstaffing
Photo by Austin Distel. Source: unsplash.com

What Is More Important – Outsourcing or Outstaffing?

Unfortunately, there is no universal answer available to this question; the model’s choice depends on your requirements. Both outstaffing and outsourcing strategies can provide excellent results for your business. These approaches are suitable for companies that don’t have the technical knowledge to accomplish their projects.

However, if your project is of enormous scope and you have specialized managers, then start outstaffing. An outstaffing company will be the best to meet your business’s needs if you want to hire professionals to work on a project-by-project basis. This option is suitable for companies with strong management capable of supervising the projects. Such services will also be useful if you suddenly need a superior workforce that your in-house staff doesn’t possess. 

In contrast, if your company doesn’t have a professional to hire appropriate candidates or doesn’t emphasize technology, choose Outsourcing. Outsourcing is always based on partnership, and usually, the business relationships with such companies end up in fruitful and long-lasting cooperation. If you are inexperienced with outsourcing companies, make sure to sign a non-disclosure agreement to protect your data or find a reputed company that can provide the required transparency. 

Final Thoughts

Both models have advantages and disadvantages. If your business needs to hire a remote professional, outstaffing and outsourcing will help you accomplish its goals and grow your business. The bottom line is, be patient, take your time, and analyze the pros and cons of each strategy to choose the one that suits you best of all.

At OnBench, we provide services for both outstaffing and outsourcing companies. It is a perfect platform for those companies or teams that want to rent their employees. Supplying companies add their free employees to the base. Customer companies find them and hire them for their projects. Also, customers may post projects with requirements, and suppliers apply for them. It doesn’t matter whether you want to outsource your project or find some outstaff developers in your company – you can try it all on OnBench.

You May Also Like