The Outstaffing Model: What It Is and Why Its Better Than Outsourcing

Let’s assume there’s a development team, but they’re missing one member of the team. In that case, they go to an outstaffing agency and hire their employee to be a part of their team until the project is done. The outstaffing model requires a clearly defined task and provides for a person who will perform it properly. The customer pays directly to the agency, which furtherly pays money to the employee.

outstaffing model

In the outsourcing model, the IT outsourcing provider is in charge of a project and handles it from start to finish. The client entrusts his IT needs to the outsourcing provider and, in normal circumstances, would not have access to the team the outsourcing provider uses to execute the project. Normally, the outsourcing provider would hire different IT experts to handle different parts of the project and would be in charge of each expert.

What makes them similar is the fact that both of them suggest the engagement of remote and cheaper staff. While outstaffing can bring multiple benefits to you, there are also certain challenges related to hiring an outstaff team. I’m a medical doctor who also loves to write (yeah, I know what you’re thinking already), but I’ve always been passionate about technology. I believe the key to creating greater technical knowledge is simplifying software development into concepts everyone can understand.

When I need outstaffing model

The idea of an outsourcing agency is to finish the customers’ project fast and efficiently. If you want to choose a reliable vendor, ask for the references of at least a couple of software applications they have launched. Also, it’s a good idea to study the cases of an agency. Check the reviews and ratings on platforms like Clutch, GoodFirms, or Upwork. Ask former or current clients about their satisfaction with the vendor.

outstaffing model

You can talk to a live person or even meet them – we have partners from the USA, Sweden, Britain and other countries. Don’t let your vendor plead “client non-disclosure.” They should be able to send you a portfolio Conventional outstaffing vs smart outstaffing of their work and have clients who are ready to speak with you directly if need be. The discovery phase is a critical step in your process. At this stage, ProCoders are making a development plan.

Software Outsourcing and Outstaffing with YouTeam

You have full influence over the consistency and tempo of the project, with clear access to every part of the team. There is a task or project, at the end of which the remote employee’s services would no longer be needed. A client pays a specific amount per specialist to the organization and tells the hired workers to complete the essential activities. You want to use new technologies for product development, but your team has no experience with them. There’s no need to spread yourself too thin and keep everything in mind.

outstaffing model

On the flip side, outstaffing is when a company extends its development team by adding one or several engineers. Is it easy to loop outsiders into your project management software systems? Can your staff work with outside developers seamlessly?

What is outstaff?

We have already told you about outsourcing model in our blog. Let us see today what is IT outstaffing and what this model’s advantages and disadvantages are when used in software development. Outsourcing and outstaffing help small businesses to keep up with the larger corporations by attracting powerful intellectual capital. External specialists help small businesses to handle their operations without spending lots of budgets.

  • Second, outstaffed developers typically have lower salaries than developers based in America or Western Europe.
  • At this stage, ProCoders are making a development plan.
  • So, to protect yourself you should deal with only trusted outstaffing companies, carefully study all the terms and conditions of a non-disclosure agreement, and engage experienced lawyers if needed.
  • Thus, your total costs for an outstaffed team are much less than if you tried to hire additional engineering resources closer to home.

So, the definition suggests that an outstaff team member would be dedicated to one client rather than working from project to project. Outsourcing is a perfect option for startup founders who don’t want to dive deep into the technical details of the projects and start the software development process as soon as possible. It’s a good option for those who don’t have enough time to spend on their project development and those who don’t want to lose control over their business. Alternatively, within classical outsourcing the client partners with an outsourcing vendor that takes full responsibility over managing talent and implementing the project.

What is Outstaffing Model?

If you detect a deficiency in human resources, it is simple to add new abilities to increase total production. Similarly, you may terminate your relationship with specific developers once the project is complete. In other words, the client can increase or decrease the size of their teams as needed. It is common knowledge among managers and recruiters that the search for highly skilled IT specialists can take up to three months.

Vendors should be responsible for quality assurance and ensuring the coding fits your project parameters. No daily management outputs are necessary from you at a client level. You may need specialized expertise that your company doesn’t possess in-house, such as knowledge of decentralized finance, which becomes more popular daily. When you outsource those tasks, you get access to skilled professionals who can do the work quickly and efficiently so you can focus on other aspects of your business.

The IT outstaffing company takes on the whole mundane responsibilities of searching, recruiting, and onboarding the specialist on behalf of the business. In the case of outsourcing, typically it is a contracted team project manager who guides and manages the full scope of the job. What concerns outstaffing, clients actually handle their entire staff themselves. Since an employee concludes an employment contract with an outstaffing company but not with a customer, the latter does not deal with these matters.

Characteristics of the dedicated team model:

For example, the client may need to augment its team with three senior JS full-stack developers and one senior automation QA engineer. Outstaffing is a modern business strategy that allows you to hire remote employees for temporary and project work. With outstaffing, you are guaranteed to get the benefits of working from your own team at a fraction of the cost. It’s a more profitable way to outsource than hiring new employees or participating in offshore outsourcing. A company outsources a business process or minor tasks to another company, and then its employees work at a level with the outsourcing company preparing the same project.

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In addition, by functioning as an extension of your IT staff, these external developers can enhance the abilities and technical expertise of your in-house programmers through regular collaboration. Remote developers employed by another company help you with the tasks you don’t have the capacity to do with your in-house team, they are not the same. Recognizing the differences between outsourcing and outstaffing models can help you reveal the best approach for your projects. And then, the outstaffing model came to the scene as a new method of hiring remote talent. While still technically outsourcing, outstaffing gives the client more control over the product by allowing them to manage remote workers directly.

The document should be prepared in a language everyone on the team understands without ambiguity, and the manager should welcome and invite questions on an ongoing basis. You should also monitor the team member’s performance to verify that each developer performs as expected. Monitor the performanceand operation of the outstaffed workforce.

What is an IT Outsourcing Model?

But as time went by, the classic outsourcing model as we know it today started to show flaws. High-end remote employees are the key to productivity and success for many companies. Hiring remote employees has many advantages, such as more competitive rates, greater availability and a willingness to handle projects of varying complexity.

Consequently, the responsibility for successful and timely delivery is the client’s, not the vendor’s. In the software development world, the question ‘outstaffing vs. outsourcing’ is often asked. What is the difference between outsourcing and outstaffing models?

Communication routes are critical because vendor staff often works remotely, or at least independently, from the rest of your team. As the client, you must guarantee that your outstaff team is completely integrated into your project management software and that their reporting is visible to the rest of your corporate team. Your company should provide high-quality communication skills, otherwise, you may experience consequences of miscommunication with the outstaffer. As a client, you have to ensure your outside employees feel connected, understand all the development processes, and keep in touch with the in-house team. You should clearly communicate your expectations and set up tasks in order to avoid problems. Consider using open-source videoconferencing tools for daily meetings and creating strong connections with every team member.

Consequently, we recommend you seek advice from specialists before making any final decision. The contractor company finds job applicants and concludes a service agreement between both parties. Each employee understands the tasks to be performed in the current phase, and you have all the required tools to set, execute, and monitor the project. You do not have to pay insurance, vacation, etc. as you work with remote employees temporarily. After the team is formed, specialists can start developing the project. The outsourcing provider is entirely in charge of the team.

Screening the candidates and asking the right questions is the central part of the work of temporary recruitment agencies. If they can’t do it properly, the chances that the company will suggest hiring specialists who don’t fit are pretty high. As any small business owner can tell you, managing employees is one of the hardest parts of the job, not to mention financial obligation to satisfy ever changing government regulations. Outstaff makes my life much easier by taking that worry off my plate. I wish Outstaff had been around when I first went into business for myself 14 years ago. I needed someone to handle my trucking dispatch and accounting, which I had no knowledge, so I emailed Outstaff.

If you decide to choose an outstaffing model, get ready to take more responsibility. It is recommended to have tech-savvy experts in the team to manage a project more efficiently. BramblingTech specialists are ready to provide you with the website development, design, and marketing services for your business. We’ll help you to identify your needs and provide several solutions for you to choose from. BramblingTech delivers both outstaffing and outsourcing services, so you won’t be limited in decision-making options.

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