The two most common options are to either outsource the work or hire in-house employees. Each option has its own advantages and disadvantages, but one of the most important factors to consider is time. Hiring in-house employees typically require a higher up-front investment, as you will need to pay for salaries, training, and benefits. However, you will have more control over your team and their work product.

On a regular basis, we conduct one-on-one meetings, as well as report on team motivation and feedback. Constant and close communication with the team members helps to establish rapport and to ensure they are motivated, involved, effective and keen to align with the client’s business. Waverley also provides training and mentorship programs, and creates professional development plans for every employee. ’offshore’ teams – the outsourced software development is done in another country. Over 6 years of work we’ve helped over 150 companies to build successful mobile and web apps.

software outsourcing and outstaffing

Their intuition about the product and their willingness to try new approaches and show them to our team as alternatives to our set course were impressive. The Devox team makes it incredibly easy to work with, and their ability to manage our team and set expectations was outstanding. As an early-stage company, we’re continuously iterating to find product success. Devox has been quick and effective at iterating alongside us.

Why The West Is Outsourcing To Eastern Europe

On the other hand, some clients will insist on a systematic approach to software development. In most cases, these companies are looking for a long-term solution and full-time dedication, but cannot find the required talent inside the country. If you own one such company, outstaffing is the way to go.

software outsourcing and outstaffing

She enjoys writing on wide-ranging topics including business, technology, health & lifestyle, education, environment etc. The client’s in-house team will also stay benefitted as they can enhance their know-how by closely collaborating with external specialists. Outstaffing is more economical when compared to hiring internally.

Discovering Pros of Software Development Outsourcing

These can be remote employees, remote vendors, or even entire companies or boutique firms. Regardless of location, what matters is that the outsourced team provides high-quality services with good communication for less than a company could find locally. By outsourcing, software companies delegate the completion of work from A to Z to their partner. Generally speaking, outsourcing is ideal for companies with no technical expertise. Outstaffing is an excellent method to expand your business. In fact, some of the world’s largest companies use outstaffing services.

  • If your vendor has proven experience in software development and remote team management, either of the models should be on the table.
  • In the case of outstaffing, offshore employees for remote software development are officially employed by another client to speed up the development process.
  • One of which is miscommunication due to time zones and language/cultural difficulties.
  • More control on your end means less responsibility on theirs and vice-versa.
  • The concept behind is to reduce costs and a way to use someone else’s highly-specialised expertise and experience.

Our products – both proprietary like Xeoma, and created for our clients – do sell successfully around the world. We can also take up urgent projects where we’d need to start urgently! 48 hours to find the best matching software outsourcing and outstaffing developers for your company. Here are many other advantages for companies that choose to hire through YouTeam. Many projects of different sizes, based on different technologies were successfully implemented.


Although there are several employment models, outsourcing and outstaffing are two of the most commonly used methods. Choosing which model is best can be difficult as the difference may not be obvious at first. Although they involve hiring a foreign employee, these two concepts have significant differences. So outsourcing requires cooperation with a company or a private person providing services.

software outsourcing and outstaffing

The construction team works according to your accepted plan but does so independently. You can come to the construction site from time to time and see if everything is alright, introducing some corrections. It’s possible to leave the whole process to the professionals in this case. The remote team will do everything alone, allowing you to enjoy the final result. The type of offshore development highly depends on your project needs.

Outsourcing vs Outstaffing: Which is the best choice?

If you are hesitant and would like expert help to select the right scenario for your business, our experts can provide a consultation and come up with the most beneficial solution. To sum up, when you choose a software outsourcing service for your Product Development , the client needs to have a local CEO , Sales, Marketing, Accounting, and Finance departments. In fact, Sales, Marketing, Accounting can also be performed remotely by the same or a different provider. An outsourcing provider usually works as your independent engineering department, taking care of all aspects of building your product or whatever elements you choose to outsource. Communication issues (if you work with non-English speakers) and cultural differences.

When people ask what outstaffing is and why you’d choose to work this way, the answer is that it allows you to have more hands-on management on a daily basis. There is a wider, more interchangeable selection of resources available. When you outsource your job, it’s easier for your vendor to send in a variety of professionals for just an hour or two. When you outsource, the vendors you hire are bound to your company’s work in the same way that a full-time or part-time employee is, so you must stick to the resources you have.

As it turns out, about 300,000 jobs get outsourced out of the US each year. Companies mostly outsource software development services, accounting, and marketing. It is believed that software outsourcing boosts small businesses’ efficiency and expertise. The availability of the offshore development center is the best choice for long-term projects with a large scope of work.

Furthermore, this strategy allows you to eliminate the expenditures of employee finance and resource upkeep. If you’re willing to put in the extra effort, the savings can be substantial. How about having a talk with a leading provider of software development outsourcing and oustaffing? Their expertise helps them deliver the project smartly, swiftly, and cost-efficiently. A company needs regular and varied IT services, e.g. maintaining and improving their application. However, just as in other cases, expanding the in-house team is lengthy and expensive, and redirecting people from other projects slows them down.

For many clients, the flexibility that outsourcing provides is a major selling feature. Now you have confidence and can go on expanding the team with QA, mobile app developers, etc. to make it a full-scale offshore software development team. In software development outsourcing, you commission an external offshore or nearshore company to execute your project from A to Z.

Outsourcing vs. Outstaffing

If you have a stand-alone unique software project that needs to be finished, a software outsourcing business can help. If you’re worried about data leakage, you can always utilize a non-disclosure agreement . To complete your projects, your outsourced IT staff will require hardware and software, but these costs will not appear on your expense ledger.

Software development models: industry overview

Though development costs vary greatly, this article gives you a roadmap to figure out your MVP price. Now let’s summarize the battle of outstaffing development versus outsourcing one. As with the previous model, you can get started faster by contacting an outstaffing agency. Let’s look at the benefits of outstaffing development as well as its drawbacks.

What is outstaffing in software development?

If your team is having trouble solving a couple of tasks, then outstaffing is preferable. Also, it is the best choice when planning to build a project from scratch. With outsourcing, the project development falls on the shoulders of the outsourcing agency. However, it shouldn’t be the reason to abandon the project.

This is the practice of transferring certain tasks and functions by the client company to the contractor company, specializing in the relevant field. This term appeared in the mid-80s and originally sounded like outside resourcing. How they are similar, and how to distinguish outsourcing from outstaffing. Both concepts denote a special relationship between the company and employees outside the central workforce. Model of flexible hiring The next best thing to have your own auxiliary crew is outstaffing. While the vendor handles payroll, staff resources are committed to you and your IT needs.

It can also help companies to avoid the hassle and expense of managing their own workforce. For example, if you don’t have in-house tech expertise, outsourcing is the best way to go. But your development partner will take care of everything you need. Although an outstaffing IT model is comparable to outsourcing, engaging talent through outstaffing has different characteristics. We have reviewed the top web frameworks for server and client-side development and compared their pros and cons. Find out which one can be a great fit for your next project.

According to the National Outsourcing Association survey, cost savings (35%) and improving customers’ experience (23%) are the top reasons why companies choose to outsource. Of course, the effectiveness of outstaffing largely depends on the agency that you will contract. Ideally, that agency should have a powerful recruiting department, mature HR processes, and proof that confirms the quality of their work.