Outsourcing vs Outstaffing: What Is The Difference And What To Choose?

As an IT company, we are a supplier for our clients; an IT Service Provider. Let’s take a look at the following summary table, and then go one by one starting with outstaffing and building https://www.globalcloudteam.com/ our way up. I enjoyed working in several companies, including startups, small private IT development Shops, and large enterprises with tens of thousands of people on board.

Typical vendors are vetting marketplaces that test developers and handle all legal matters. Before going into lengthy details about the pros and cons, let’s briefly describe the strategies in question. Get free resources to help create great software and manage high-performing teams. It is often difficult to create strong working software outsourcing and outstaffing relationships with outstaffers as they are remote and not part of the team. This can make it harder to motivate them and ensure that they feel like a valuable part of the organization. Outstaffing enables companies to quickly acquire skilled professionals while avoiding the time and expense of a recruitment process.

Cons of Outsourcing IT Services

But what if you have a tech team that misses a specialist with certain skills? Let’s see its pros and cons and what difference it may bring to your business. Outsourcing and staff augmentation in software development mean different approaches to who and how will do a particular tech task. And before we explain this any further, we need to provide a few definitions of terms we’ll use throughout the article.

Outsourcing VS Outstaffing What is the Difference

Since the outstaffing team is working under your supervision, they have to oblige to confidentially agreements and other protocols. At Onectus, we help you to find top talent that will add value to your company. We have found that our clients and partners benefit more from including international members within their existing teams, than hiring traditionally.

Advantages and Disadvantages of Outsourcing

Your projects probably won’t be the first your team is working on together. This certainly increases the chance that the development process will go smoothly. Companies are forced to make that choice every time they need to build projects or implement a new feature. Your vendor does it, along with hiring and maintaining the activities of your IT experts.

In conclusion, when deciding between IT outstaffing and outsourcing for your project, it’s important to consider the specific needs and requirements of your business. Direct feedback channels enable businesses to use outstaffing services to maintain high-quality standards. A cost-efficient alternative to local development services. There’s common evidence that the average hourly rates for software developers in the CEE region are lower compared to Western Europe and North America countries. In addition, according to the latest gathered data, this trend will continue in 2023 and the upcoming 2024.

Outsourcing Pros & Cons

Depending on your company’s needs, you can choose one or both of the models for upcoming programming projects. As mentioned above, in both outsourcing and outstaffing IT models, a company attracts a team or individual to work on a specific project/task. Also, in both cases, those developers are working on the project remotely. Still, the main difference between those two concerns the project’s management.

  • You handle the quality assurance of the development process.
  • It allows you to have complete and direct control over the entire task-completion process.
  • • With traditional IT outsourcing, communication is already established.
  • Look at the team, and their skills, and find solid feedback about the company.
  • Before deciding on one of these models, companies should analyze if they are looking for a “Client-Provider” or a “Client-Contractor” type of relationship.
  • This remote software development team can be managed either by your in-house people or you can have remote managers as well.

Companies use outsourcing to go through major transitions when there’s no definite picture of workload and no definite long-term plans. People are paid 40 hours a week, although the number of “useful” hours can be much lower. When outsourcing functions that involve sensitive data or proprietary information, data security and confidentiality become major concerns. Sharing confidential information with external parties increases the risk of data breaches, intellectual property theft, or unauthorized access. Companies must establish robust data protection measures, contractual agreements, and security protocols to safeguard their sensitive information. Protecting sensitive data and intellectual property can be a concern when working with an outside team.

Outsourcing vs Outstaffing

Consider these recent statistics from Grand View Research, Inc. Here are many other advantages for companies that choose to hire through YouTeam. This is when the client delegates all responsibilities to a person officially hired by another company . The main problem boils down to the fact that if the channels are not well established, you may have problems with communication and understanding of tasks. So, outsourcing is a great alternative to setting up an internal department or handing over a number of tasks to employees who are already in the organization. Explore insights, strategies, and success stories from a unique perspective on shaping product development with Scrum architecture.

Outsourcing VS Outstaffing What is the Difference

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. In offshore development, companies hand over their work to external vendors to meet their business needs. On the other hand, outstaffing involves hiring dedicated developers or teams. The distinction between these two approaches lies in the level of control and flexibility they offer for the company’s projects.


By hiring an outstaffing agency, you receive a specialist or a team of specialists who will be at your disposal. From the beginning of your contract in your project, they will work exclusively for you. Understaffed developers are an asset to the existing team, extending their experience and capabilities.

Outsourcing VS Outstaffing What is the Difference

It means that the outstaffing vendor is responsible for providing a qualified specialist to the client, paying their salary, and doing all HR management. The client is responsible for the tasks, supervision, and control over the development process in which the outstaffed developer is involved. These days, businesses of diverse industries and specifics select remote software development for their business needs and requirements. The current approach to remote cooperation with software vendors entails stable development and administrative processes, minimizing all potential risks in advance. However, it completely depends on the software development service provider you choose for your project. The outsourcing model also applies to different technologies, and an integrated software development function.

Cons of Outsourcing Software Development

Our reputation is built on the trust and positive feedback of our clients and we are more than ready to provide high-quality IT outsourcing services. Outstaffing software development service is compared to freelancing. However, it is much more similar to in-house development. The reason is that, within the outstaffing model, hired developers are fully managed by a client as they would be managed as a staff. The client basically hires outstaff developers for the needed time. However, the main difference between outsourcing and outstaffing is that outstaffing hires experts from other firms to work on the project under the control of the business owner.

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