If you work with outsourcing companies, you will be able to choose whether to oversee the project closely on your own or fully trust a PM with it. Both software outsourcing and outstaffing involve hiring an external team remotely to work on a specific project or task. In outsourcing, your company will hire an entire development team and a manager to run the project.

The words are very similar, but the corresponding hiring models are distinct. In the fast-evolving landscape of software development, businesses frequently require expertise in niche technologies or programming languages. Outstaffing facilitates access to a diverse talent pool that possesses specialized skills and experience.

Deciding Between Outsourcing and Outstaffing

From the start of their employment on your project, they will work for you exclusively. Outstaffed developers are an asset to the existing team, expanding its expertise and possibilities. We’ve worked with clients from various industries, helping their business scale fast.

what is outstaffing

However, you will need to handle task management and decide which part of your team, internal or remote, needs to complete specific tasks. Outstaffing is when a customer requires the exact specialist from an agency for performing short-term tasks. Outstaffing is quite similar to hiring a freelancer, but the main benefit is that you can be sure of your project’s high quality and security level. Let’s assume there’s a development team, but they’re missing one member of the team. In that case, they go to an outstaffing agency and hire their employee to be a part of their team until the project is done. The outstaffing model requires a clearly defined task and provides for a person who will perform it properly.


As they deliver the product and the contract is complete, the service provider stops working with the business owner. Outstaffing allows overwhelmed teams to scale up quickly by augmenting their workforce with specialized talent, relieving pressure and ensuring projects are completed efficiently. When adding outstaffed professionals, the additional support not only alleviates stress but also enhances the quality of work, as they bring their expertise to the table. This collaborative approach redefines scalability, allowing startups to maintain momentum during peak work periods without compromising on quality.

what is outstaffing

Outsourcing, especially offshore, saves companies tons of money that they’d spend if they decided to create a whole extension of the business or hire people. Instead of this hassle, outsourcing gives them many options with different costs that they are free to choose from. Outsourcing is a hiring strategy that is only getting more popular with time. It is the strategy or process of hiring a third-party company with a specified specialization to manage one section of your company.

Access to Talent

The client themselves might be involved in the process, but not for 100%, which might make the collaboration
frustrating. These two models help companies accelerate development and optimize staff costs, as well as tap into the valuable experience of IT professionals around the world. Therefore, Grand View Research, Inc. calculated that the cost of outsourcing and outside staffing would grow by 7.7 percent per year. By 2027, global spending will increase by $936.3 billion as a result of this. Check if an outstaffing company provides experts with the skills that you need. Moreover, check the client feedback to get a better idea of the quality of outstaffing solutions offered by a company.

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The outstaffing model gives you full control of the project and resources. You can continue the existing processes of the project and seamlessly integrate the new workers. Since the outstaffing team is working under your supervision, they have to oblige to confidentially agreements and other protocols.

Outstaffing: pros and cons

You can hire data scientists and machine learning engineers who become an integral part of your team, working closely with your in-house developers and analysts. The process of hiring and firing employees can entail outstaffing company significant legal and financial risks, particularly in jurisdictions with stringent labor laws. Outstaffing mitigates these risks as the responsibility for employment matters rests with the outstaffing provider.

  • But if you are only looking for a temporary team to work with you, outstaffing might be the best way for your company.
  • However, communication would be a tad difficult or completely absent due to the fact that both entities are literally miles away from each other.
  • The global IT industry is growing rapidly and is expected to reach a whopping size of $410 billion by 2027.
  • Not only do you want to make sure that the person or team you bring on board is invested in your company, but they should also be able to work well with other members of your team.
  • If you are looking for outstaffing services in Ukraine and Poland, contact Efisco.

The ultimate aim of both arrangements is to provide an easy way for companies to hire resources to accomplish work. However, their ways are different along with the advantages that they offer. For instance, outsourcing lets you hire a team to get dedicated support for a project.

Outsourcing & Outstaffing Development Models Comparison

But at the bottom of it, all of the advantages and disadvantages boil down to one thing. Outstaffing is preferable for clients with significant, long-term demands who require day-to-day control of their vendor team. Outsourcing is the best option for clients with shorter-term requirements that need turnkey service from their vendors. In this article we’ll define, compare and inspect pros and cons of outsourcing and outstaffing models.

what is outstaffing

Outsourcing is the process of transferring specific jobs and tasks to another company. On the other hand, outstaffing is a temporary service in which companies hire freelancers on an hourly basis for their projects/tasks. The main difference between outsourcing and outstaffing is that outsourcing implies hiring people on a long-term basis, and outstaffing only for a specific project or job. Unlike outsourcing, outstaffing enables startups to retain full control over their projects while benefiting from the expertise and resources of the outstaffing partner. If you’re new to software development, it may be difficult to find and hire professionals for your project.

Outsourcing: Advantages & Disadvantages

However, having an employee communication app for your business can help reduce this. Your organization may see increased production and efficiency as a result of outstaffing. Your team will be better able to focus on core business processes if you out-staff some jobs or projects to remote workers.

what is outstaffing