What are the current outsourcing trends? That is a million-dollar question that needs a panoptic response. But there’s one thing we all know for sure: IT outsourcing is gathering steam, introducing irreversible changes to global businesses. This statement isn’t mere…
Outsourcing vs. Outstaffing in Ukraine: Which One Is The Right For You?
Both business owners and individuals often seek help from industry experts to make their idea a reality. Software development is no exception. However, tech staff is worth their weight in gold, hence landing the right specialist may end up being an uphill struggle.
How to avoid that? Consider implementing outstaffing vs outsourcing practices into your workflow. If you aren’t in the know, this post will tell you all about the IT outsourcing models mentioned before. Let’s get into it.
What Is An IT Outsourcing Model?
Outsourcing refers to the business practice when you are delegating the software development to an IT support outsourcing vendor. In this case, your tech partner takes over the whole development process, including recruitment process outsourcing and other administrative burdens. Outsourcing models may include but are not limited to fixed price model and time and material software. Also, most companies prefer outsourcing offshore. IT outsourcing in Ukraine, for example, is a popular hiring option thanks to an unrivaled price-value ratio.
What Is An IT Outstaffing Model?
Outsource staffing is a type of remote hiring model in which you hire a dedicated team of developers to work on your project. In this case, you’re in complete control of the development process. Typically, the outstaffing personnel amplifies your in-house capacity. The outstaffing company is accountable for recruiting and administering.
Why Companies Prefer Outstaffing vs Outsourcing
The business practices in question have caught fire mainly because:
- They foster business growth. Scalability and speed of hiring are the main sweeteners of remote recruitment. While an outsourcing vendor and outstaffing company shoulder all time-consuming duties, business owners focus on mission-critical tasks. All these translate into growing into continuous business expansion.
- They drive down the costs. Profit and numbers are key success factors that ensure business continuity. Offshore outsourcing and outsource staffing allow organizations to get their job done for a fraction of a price without compromising quality.
Outstaffing vs Outsourcing: Comparison
So what’s the difference in the outstaffing vs outsourcing? It’s simple. Companies that face the in-house vs outsourcing dilemma turn to offshore outsourcing within the project-based business model. Therefore, the whole development process is in the hands of an outsourcing vendor, while a client focuses on other business activities.
Outsource staffing is a hiring approach when a company recruits a tech specialist to perform development functions. Unlike offshore outsourcing, outstaffing contract includes only hiring and team maintenance functions. Therefore, outstaffed developers fully belong to your internal team and work under your supervision.
Now let us go over the advantages and caveats of outstaffing vs outsourcing.
Pros and Cons of Outsourcing Software Development
Outsourcing pros include:
- outsourcing vendor is accountable for resource-intensive focal areas such as quality and delivery;
- reduced management activities from the client’s line;
- expensive equipment and software come complete with the outsourcing contract;
- the hurdles of hiring are the vendor’s responsibilities.
Outsourcing cons include:
- partial or complete loss of managerial control;
- if the project requirements are vague the expenses may end up being higher than with an outstaffing company.
When Choose Outsource Staffing
Outsourcing is the right path to follow when:
- You have the scope of work suitable for delegating. Not all tasks are fit for offshore outsourcing. If you have a goal-oriented undertaking of multiple tasks, this might be your perfect alternative.
- You have found a reputable outsourcing partner to entrust your business processes. Only established outsourcing vendors have the capacity and experience to take the controls.
Pros and Cons of Outstaffing
Outstaffing pros include:
- Fast access to a pool of domain talent. You have skills that match your business objectives.
- Efficiency. Increased speed to market is no longer a far-fetched dream with an outstaffing company.
- Flexibility. Based on the current workload, you can build up or down your in-house team.
- Lower costs. You don’t have to handle additional costs such as recruiting, personnel maintenance, and others since it’s all on the vendor.
- Mobility. You manage your team, assign and adjust responsibilities per your project needs.
- Communication. The complexity of communication is a typical pitfall since outstaffed team members are usually located abroad or in a remote environment.
- Lack of motivation. Outstaffed hires require extra communication to dedicate their undivided attention to your project.
How to Decide What is Best for Your Project?
We understand that it can be difficult to make the right call in the outstaffing vs outsourcing battle. So here’s a short cheat sheet.
Choose the outsourcing model if:
- you have a full-fledged project to deliver or at least a broad field of activity;
- you lack internal capacity or tech expertise;
- you need to hand over the project management tasks to a tech partner.
Opt for the outstaffing model if:
- you don’t necessarily have the whole project to deliver – it may be particular business activities carried out on a regular basis.
- you have enough technical competence to take a team of engineers under your wing.
How to Find An Outsourcing or Outstaffing Company
We now hope that you’re better equipped with the knowledge to choose the winner in the outstaffing vs outsourcing game. We, at Devox Software, are keen on both. Whether it’s outsourcing or outstaffing business model, drop us a line and we’ll provide free consultation on any questions remaining.