You need to decide what your project’s goal is, regardless of whether it is outsourcing or outstaffing. Once you have hired a team, communicate your goals to the vendor so they can get started. Both outsourcing and outstaffing are viable options that help companies grow. Choosing which approach to use depends on the company, the project, and the resources. Both outsourcing and outstaffing involve contracting workers from outside the company to do a job.

Companies can easily adjust the size of their remote team of outstaffed developers based on project demands, allowing them to scale up during peak periods or downsize when necessary. One common outstaffing model is hiring dedicated developers from a software outsourcing company like SDD Technology. This involves selecting individual professionals who work exclusively on a project or within a specific department. Another option is assembling project-based teams, where experts from various fields collaborate to achieve business project goals. Extended development centers provide an entire offshore team that operates as an extension of the client’s in-house workforce. With an outstaffing model, companies can tap into a global talent pool and access highly skilled outstaffed developers from around the world.

Outsourcing vs. Outstaffing

So, the scope of the project is managed by the CTO or the project manager of the client company and not the development company. Whether you’ve decided to outstaff or outsource software development, understanding the major benefits and potential drawbacks is of the essence. So, let’s review the pros and cons of team outstaff vs outsource to identify which will work best for your business objectives. At SDD Technology, we understand that project requirements may change.

difference between outsourcing and outstaffing

Hiring a software outsourcing company will fully evaluate your demands, wishes, and budget and will make your project idea a reality. Managing a remote worker can be both an advantage and a disadvantage. With the skills to handle a remote developer, managing quality web developers is a plus.

Disadvantages of Outstaffing

Our dedicated project managers act as liaisons to ensure smooth collaboration and prompt responses to your queries. The main difference between outsourcing and outstaffing is that outsourcing refers to the entire project support, while outstaffing provides hiring and maintenance of experts. 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. The dedicated teams may become an outsourcing development model after some time.

  • Outsourcing companies also provide necessary software and hardware, saving on permanent tech team and equipment costs.
  • We have successfully replicated 370+ projects and continue to prove our clients’ trust.
  • With outsourcing, a client company hires a whole development team and a manager who is responsible for running the project.
  • This solution makes it possible to develop a business in an unstable market without the risk and the need to expand the staff.
  • Our developers are trained in best security practices, and regular audits are conducted to ensure compliance with industry standards and protect your data throughout the development process.

One interesting point is that in-house managers can manage outstaffed members, but managers can also be outstaffed themselves. Thus, there is no need to look for performers for your lice company. Instead, this will be done by the outstaff company with which you agree on the project’s details and deadlines.

What Is Outstaffing?

Creating an in-house team is expensive, time-consuming, and stressful. Outsourcing and outstaffing both provide an effective and less expensive option. In most cases, you will only interact with a project manager from the outsourcing team, whom you’ll provide your deadlines, updates, and requests. Every project and business situation is different, but there are a few common cases when it’s better to outsource and when outstaffing would be more beneficial. Outsourcing is a popular practice for businesses that don’t need a permanent full-stack team as it’s costly and not always necessary.

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. People often assume outsourcing and outstaffing are the same things. This probably happens because both methods imply a client entrusts workers from outside the company to do a job. Moreover, some people consider outstaffing as just an outsourcing model. Now when you know the difference, let’s talk how to apply this difference to your business. Whether you need an IT outsourcing agency or it’s better to go with an outstaffing company fully depends on your needs.

Advantages of outstaffing

Are you tired of juggling multiple IT projects while trying to keep your business afloat? Enter the world of outsourcing, where an outstaffing company handles your IT tasks, leaving you free to focus on what really matters – your core competencies. With an outstaffing team of skilled and reliable outstaffed developers, you can streamline your operations and achieve greater efficiency.

difference between outsourcing and outstaffing

Most often, outsourcing means that your contractor will do the whole scope of work – not just a task or two. If it’s an app, they will deal with everything – from technical requirements to final checks and maintenance. Having chosen outsourcing, you’ll most likely to interact with a project manager handling the team. The providing end is responsible for maintaining the team of professionals a company hires.

Tell these 3 types of stories to power up your business-focused award nomination

When AxisPoint could not find enough local engineers in their home state of Kentucky, they reached out to ProCoders for help. ProCoders answered the call with a Staff Augmentation proposal that allowed the CTO management team at AxisPoint to manage the programmers ProCoders provided directly. This way, AxisPoint/VSimple saved both money and time on hiring. There are two outstaffing models for paying for and managing your outstaff team. With the new tool, sales managers of the top-notch company can easily adjust their presentations for clients. The solid tech solution built via outsourcing model would be a contributing factor in boosting sales.

Outstaffing involves fewer qualified people and, therefore, fewer cost. This is an important factor because cost is one of the main reasons why people decide to outstaff or outsource their work. Your projects probably won’t be the first your team is working on together. This certainly increases it outstaffing services the chance that the development process will go smoothly. You can also replace them and end up your cooperation when their work is done. Hiring the best outstaff developers is basically the same as hiring a new staff to work for you, except for lower rates and savings on recruiting expenses.


In outsourcing, part of the company’s functions is transferred to a specialized third-party executive company. It doesn’t have to be solely programming — one can outsource accounting, HR, call centers and advertising/PR. It’s based on a long-term contract with a company for hiring contractors.

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