Outsourcing vs Outstaffing Models in IT: What is the Difference?

Companies usually hire outsourced employees with the understanding they’ll be employed for a limited time. Thus they can more easily drop or add people to the workforce without jeopardizing the company’s reputation. If you outsource some tasks that aren’t the core of your business, you may have more time and labor to concentrate on core initiatives.

However, they will bill you for these things, and you will be responsible for paying them. It’s an arrangement that can work smoothly, but you must keep your HR department apprised of your outstaffing development plan and ensure the engagement rules are clearly defined. Now let’s see how these compare to outstaffing to see the difference.

Fill talent gaps

According to Grand View Research, Inc, the global expenditures for outsourcing and outstaffing will reach $936.6 billion by 2027, then growing by 7.7% yearly. Resorting to external vendors is a real world-wide trend that has become the new norm in the IT industry. In most cases, you will only interact with a project manager from the outsourcing team, whom you’ll provide your deadlines, updates, and requests. If your company needs high-end outsourcing services, our experienced and qualified specialists will be happy to help. TCO team is an IT outsourcing company that offers a wide range of professional IT services to companies of all sizes. The outsourcing provider provides the IT services stipulated in the contract using whatever technical platform it considers a fit.

The experience reported by Deloitte Survey respondents is mostly (78%) positive. Computer Economics claims that 65% of businesses outsourcing application service will continue to do so and plan on further increasing their involvement in outsourcing. When you have a specific plan and a dedicated team that helps you boost your product, fast growth is inevitable.

Start a Project

I’ve also addressed the challenges when hiring an outstaffing team. You can overcome many difficulties, such as language, culture, and reliability, by working with Uptech. Uptech is a reputable international app development company that provides outstaffing services. We outstaffing vs outsourcing partner with startups worldwide to build apps that users love. Run background checks to prevent hiring an IT outstaffing company that doesn’t align with your requirements. Clutch allows clients to leave comprehensive reviews and experiences of outstaffing providers.

The unique characteristic of an outsourcing IT model is that the development team members you choose will deal with every aspect of your project from design to testing. IT outsourcing is a model which allows you to hire a complete dedicated team of programmers, designers, QA engineers, and project managers. That being said, outsourcing is a comprehensive model where a development team is hired to remotely deal with one (or more) of your development projects. For this reason, we have created an analytical guide that explains what outsourcing and outstaffing is and what the main differences are between them. This article will also help you figure out which model best fits your business needs and how to find high-quality collaboration partners to outsource your IT projects.

When is it better to choose outstaffing for a software development project?

And like anything else in this world, all approaches have their pros and cons. The Azoft team has 19 years of outsourcing experience and 800+ completed projects. We provide consulting and full-cycle development services in web, mobile and MVP. If you’re considering outsourcing, contact us at and we will gladly help you.

Outstaffing and outsourcing are quick routes to landing such developers without upskilling their internal team or going through a lengthy recruitment process. Moreover, certain IT specialists are hard to find in some countries. Even though these specialists will still officially work for your IT partner, you will have the possibility to fully manage their work just as if they were your in-house employees.

Outsourcing Cons:

Outsourcing can be either Operational or Tactical suppliers, depending on the importance and impact. Taking more ownership, and providing more value, is the key to progress toward strategic partnership. Receive one exclusive article a month and learn efficient ways to develop custom software. There are many advantages to outsourcing, and the following five outsourcing features should be enough to convince you.

Outstaffing comes with the responsibility of managing remote developers. Even if they’re not physically present on your premise, you manage them as if they are a part of your in-house team. They’ll coordinate tasks based on project requirements and report progress to you at a specific timeline. Outsourcing works exceptionally well for projects that require a whole team of developers and project managers to bring the client’s vision to life. When a project demands a comprehensive set of skills, expertise, and resources, outsourcing can be the ideal solution to assemble a dedicated team tailored to the project’s specific requirements.

Step 1 – Define the project scope

Basically, outstaffing is the most straightforward model to understand. Many companies are shorthanded and need a development team to help their house developers. Outstaffing comes in handy when the client’s needs mean increasing the software development team’s capacity and jumpstarting the development process. In the case of outstaffing, offshore employees for remote software development are officially employed by another client to speed up the development process.

• Outstaffing can adequately solve your business goals, yet it comes with its own set of benefits and risks.
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• As a result, the risks of business operations being disrupted due to a lack of provision might be passed to outsource service vendors.
• It means that the outstaffing vendor is responsible for providing a qualified specialist to the client, paying their salary, and doing all HR management.
• First, companies realize the need for the services of a couple of developers, or maybe a whole team, for your software projects.

Speaking about the tech area, a development team can be employed by another company to perform testing, product management, maintenance, and support, along with software development outsourcing. The outsourcing model also applies to different technologies, and an integrated software development function. Let’s continue with the outsourcing vs outstaffing comparison related to three core points. Outstaffing is a staff augmentation process where businesses hire software professionals from IT outsourcing companies to boost their existing teams.

Need well-skilled app developer?

Outsourcing and outstaffing are also often confused with offshoring. Offshoring is a model that involves transferring a part of business to a foreign country. The offshoring model involves hiring a permanent, remote team in a different country. Serhii knows everything about project architecture, data science, and machine learning.