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Outsourcing vs Outstaffing: Whats the Difference?

Meanwhile, outstaffing works for businesses with an existing IT department that need support to handle specialized parts of the development process. Now we’re ready to explain the difference between software development outsourcing vs staff augmentation in more detail. The type of offshore development highly depends on your project needs. If your team is having trouble solving a couple of tasks, then outstaffing is preferable.

How can I outsource my software project?

  1. Define your goals.
  2. Prepare Scope of Work documentation.
  3. Define your technology stack.
  4. Bring experienced Engineering Leader.
  5. Manage project scope, budget, and timeline in each iteration.

Quite often, those who have never evaluated and planned their work can’t correctly establish a software building process. While outstaffing your work can effectively solve your business goals, it has its own risks and drawbacks. It can be said that offshore developers become literally remote in-house developers for the customer’s company for the whole period of cooperation with offshore agencies. Fortunately, we have already prepared detailed software outsourcing rates in various outsourcing regions in 2020 which you can find above. At Devlane, we are experts in both Outsourcing and Outstaffing models. Reach us out here, and we can help your company choose the model that best suits your needs.

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Nevertheless, entrepreneurs underestimate the complexity of hiring an outstaff team. They believe that they’ll be able to communicate, manage and assign tasks to the remote staff, and manage their business at the same time. Once you sign an NDA, the rights for the code written become yours. However, during the building phase, you won’t have much access to the code. This is because the software outsourcing company needs to secure it against possible data theft.

First, companies realize the need for the services of a couple of developers, or maybe a whole team, for your software projects. This can be easily verified by collecting feedback from other business owners and entrepreneurs who applied for outsourcing services and had experience of cooperation with a particular country. With outsourcing, you can count on a fixed budget for the project, as the number of tasks and time frames are defined in advance.

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Outsourcing means giving specific tasks or projects to an outside company or service provider, while outstaffing involves hiring dedicated professionals who work remotely and become part of the client’s team. Outsourcing is about getting tasks done, whereas outstaffing is about extending the team and working together for the long run. Outstaffing is one of the more “transparent” ways of outsourcing services.

  • Otherwise, the best choice may be hiring some other form of services Outsourcing.
  • These days, businesses of diverse industries and specifics select remote software development for their business needs and requirements.
  • The third-party company provides the client with a team of the most skilled and self-managed experts suitable for their IT project.
  • That way, outstaffing puts the client at the helm of the SDLC.
  • And, unlike the outsource cooperation model, a dedicated team is responsible for a certain part of the development process.

By hiring dedicated specialists, you fulfill the missing elements of your team and get full control over the tasks you handle to them. Both outsourcing and outstaffing focus on your scaling needs, helping you free up your core team from additional tasks and add more hands. So, when your squad is inundated with tasks, it’s a good idea to go with one of these approaches. As we mentioned earlier, the vendor of outsourcing uses their internal team to work on the client’s goals. Your role as a client in this model is down to providing project specifications and outlining the project milestones, deliverables, and time frames, which the vendor is bound to follow. The client has no say when it comes to SDLC and is excluded from the communication with the team as well as the team formation process.

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