Outsourcing vs Outstaffing: What’s the Difference?

Now let’s summarize the battle of outstaffing development versus outsourcing one. It seems like the year 2020 has changed the rules of the game in the IT industry once and forever. Even though the vaccination programs are being launched worldwide, the new work process rules established by the coronavirus pandemic are here to stay, especially in the software development industry. As many say costs for software developers have soared across the U.S. and Western Europe, outsourcing to arbitrage labor costs has not just become popular but also increasingly necessary. For this reason, insist with your outstaffing vendor that you get to do final interviews for all candidates being proposed to you–and that you get final decision-making power.

Outstaffing in Software Development

Top-level talents work for a price above the average on the market but hiring them for a long-term contract can result in significant discounts. In addition, many IT outsourcing companies can negotiate quite affordable https://www.globalcloudteam.com/ prices to ensure long-term contracts, based on their current workload and situation on the job market. Offshoring the project to a dedicated software development team must not have saving costs as a single goal.

API Development & Integration

Waverley also provides training and mentorship programs, and creates professional development plans for every employee. Waverley Software provides accounting and legal support to the team members; our HR management system manages team member’s PTO in a way that doesn’t impede the product development. In each case, you should only partner with the tech vendors that have expertise in developing solutions for your industry, and are familiar with its requirements for software products.

Furthermore, with such a large talent pool to choose from, corporations have more flexibility when it comes to selecting the degree of competence and price that best meets their needs. According to Accelerance research, outsourcing development to an offshore software development firm often saves corporations between 40% and 75% of total expenditures. The third-party company provides the client with a team of the most skilled and self-managed experts suitable for their IT project.


Outsourcing teams are more cost-effective because they work on an hourly-paid basis. You simply pay for the time they spend working directly on a project. There is also no need to invest in recruitment, office supplies, equipment, or other onboarding activities. Companies are increasingly adapting to a remote work culture that enables them to access global talent from the most cost-effective sectors. This has also allowed businesses to mitigate risk by diversifying their delivery sites.

Outstaffing in Software Development

When you hire Syndicode, we’ll provide you with an expert opinion on software development outsourcing or outstaffing you need. Both Ruby on Rails software outstaffing and outsourcing are provided at Syndicode since 2014. But throughout years and projects, it proved its relevance and efficiency. Communication channels are critical as vendor staff frequently operate remotely, or at least separately, from the rest of the team. For this reason, it’s vital that your outstaffed team has a firm grasp of all project management software and that their reporting is transparent across corporate team members. As a result, in 2020, IT outsourcing reached $1.1 trillion worldwide — a record-high.

Reduced Time-to-Market

Let’s take a closer look at the pros and cons of outsourcing software development to determine whether it’s worth the hype. Here are 5 best practices of outstaffing, defined based on IT Svit experience and comprised into a short guide to outsourcing software development. There is a tendency on a global IT outsourcing market to exaggerate the level of employee competence in order to bid for better contracts.

  • When you work with an IT outsourcing provider for the first time, going full-speed at once is not the best course of actions.
  • There are many options to consider in the outsourcing vs outstaffing debate.
  • This article aims to provide a comprehensive guide on software development outstaffing.
  • In a nutshell, outstaffing means inviting people to the in-house team to cover the need for certain skills.
  • 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.
  • Outstaffing allows the client to manage and supervise all of the team’s operations and productivity.

Everything you have to do is find a good software vendor and let them become your guide in the world of technological decisions. A decent outsource software developer will also take your project into working regardless of the stage you’re stuck at. They have all the resources and skills required to take over it halfway gone or build it from scratch. Flexibility matters in today’s business, and software development outstaffing is your chance to reach it.

Every Outsourcing Company Has An Expertise

If you’re looking to outstaff to add to your existing product and team through recruiters or R&D centers, you may want to intensely focus on the interview questions and test tasks assigned to the candidates. For example, when I ask a candidate, “Why do you want to work for us? ” and the answer is something akin to “for more money” and not “I want to work for a ‘product’ company,” that developer never lasts with us for more than a year.

Outstaffing in Software Development

It usually happens when the client is satisfied with the quality of cooperation. 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 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. Takes the PRD and elaborates on it to the point where the team has a very clear idea of what the customer wants and what is needed to deliver.2.

Security and Data Privacy Issues

Customers may prefer this approach when they already have a technical team, but lack experts, so the problem cannot be completely solved in-house. So, this practice means that the organization providing a service in this way software outsourcing and outstaffing takes over the work in full. For example, if this is an app, they will complete everything from specifications to maintenance. And by choosing to outsource, you will most likely interact with the manager of the hired team.

Still, the main difference between those two concerns the project’s management. Many established companies and startups are moving towards outsourcing to optimize their software development budget. As the pandemic has blurred the difference between work from home, and work from office models, the inhibition towards remote or distributed development teams is vanishing. Outsourcing and outstaffing to remote and cheaper locations like India, Ukraine, Poland, and the Philippines are found to be more lucrative and cost-effective. According to the IT outsourcing model, nearly all communication and project management on the development process is handled by the Project Manager of the outsourcing organization.

Software Development Outstaffing: Advantages, Challenges, and Best Practices

Manufacturers of medical devices use this data with AI predictive analysis to better diagnose patient problems. It’s absolutely essential, as any downtime directly equates to lost income. To stay in fashion, however, these platforms require constant updates. When we put both AI and predictive analysis together, we can get useful predictions based on the vast amounts of data that have been fed to the AI. Even a minor software issue can become amplified and lead to devastating results, such as financial and reputational losses, or even an existential threat to your business.






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