In 2022, IT businesses choose the outstaffing model more often than in previous years. First of all, this approach to IT services export is now at the peak of its popularity and doesn’t show signs of a downtrend. Secondly, more and more customers notice the financial benefits of this business model, which affects the growth of the demand for high-quality staff augmentation services. Are you able to manage tech teams and set clear tasks and requirements?
So, to protect yourself you should deal with only trusted outstaffing companies, carefully study all the terms and conditions of a non-disclosure agreement, and engage experienced lawyers if needed. Compared to outsourced specialists, outstaffed ones work exclusively on a client’s project. Therefore, they totally concentrate on it, and this contributes to the quality and speed of their work. Besides, the fact that the client company supervises their work also fuels specialists’ performance and helps to keep them on the right track.
Offshore Development Models
Scheduling an interview with a possible outstaffing partner is pivotal for making a decision on whether a vendor is a good match. Talk to a technical manager and see how their development process is arranged. It’s crucial to know right from the beginning whether they have developers with the exact expertise you want. If experts have already been engaged in projects similar to yours, it would only be a big plus. If you have extra resources to use and want the job done without being involved, then your to-go option is an outsourcing model. You will be involved more in the development of the project since outstaffing companies do not provide clients with a management team.
All in all, your outstaffing partner should be able to dive into your problems and provide the best solutions to them. So, the main difference is that outsourcing refers to the whole project support, while outstaffing provides hiring and maintenance of individuals. So, working through an outstaffing model requires a better understanding of the tech side of the project on your side, as you are the one managing the outstaffed professionals. During the active collaboration process, the client and the outstaffing vendor have mid-term sync-up calls and share feedback. The client can also consult with the vendor about the practical questions such as remuneration or processes set-up. The PDS project is usually expected to have a Project Manager, Product Owner, Stream, and group leaders among the team members.
#4. Total control
The aim is not to choose the best option out there (it simply does not exist) but the best option for your specific software idea. It is time to find a tech partner who will guide your next steps seamlessly. Do you already have a tech team and are looking for an extension?
If you made your decision on what model to choose, feel free to contact Riseapps! We’ll do our best to come up with the most sensible outsourcing or outstaffing solution for you, offering high-quality services at a reasonable price. As mentioned, Riseapps provides both – outsourcing and outstaffing services. Outsourcing is a practice of having workers from another company (or just an individual) to perform a certain job for you. This could mean creating an app, a software product, website development, etc.
Possible disadvantages of outstaffing
One of the main benefits of outstaffing is that it can cover the growing talent shortage haunting the tech industry. IT outstaffing best suits those tech companies that want to extend their existing tech team quickly and want to keep ultimate control over their talent and projects. In the best-case scenario, the client company has tech expertise on its side to manage the extended IT team, while the outstaffing service provider facilitates everything else. However, it’s not uncommon for companies to hire project managers together with the remote team through an outstaffing vendor. In outsourcing, the technical vendor takes care of managing the team as well as all the required planning and tracking activities that should lead to the successful delivery of the product.
- Today it is a common practice to look for IT experts outside own organization and even country.
- In order to get the top-notch product, you need the professionals.
- Our experts will analyze your business needs and the peculiarities of your project to offer the most appropriate variant of cooperation with an IT partner.
- I enjoyed working in several companies, including startups, small private IT development Shops, and large enterprises with tens of thousands of people on board.
- In this case, outsourcing development to a tech vendor is a time and cost-effective solution.
- It can also be useful when you have a shortage of personnel in your team or you want to close a one-time or non-test task.
At ProCoders, we usually ask our clients to think hard about the kind of outstaff projects needed. Will you truly have enough work to keep one or more people occupied full time, year-round? Do you have the capacity to bring that person in as a “vendor worker” or “contract worker” within your company? Do you want access to this worker as a manager, working with them and controlling their workflow daily as if they were a member of your ongoing IT staff? In a “cost” outstaffing model, the client pays one flat fee to an IT services company to get a part- or full-time member for their company’s outstaff team. With that fee, the informational technology services company pays the team member’s salary, benefits, bonuses, equipment expenses, etc.
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What are the most common engagement models in software development and which one suits your project? At this stage, you need to make a list of outstaffing companies that suits your business goals. Pay attention to the testimonials and recommendations of your colleges, friends, reviews on the internet.
The client has to actively manage their remote dedicated team, meanwhile, the outstaffing agency concentrates on providing a comfortable environment for work and growth. Considering information technology outstaffing services, it’s important to understand the ins and outs of working in an outstaffing model and how to manage your outstaffing team. So, the definition suggests that an outstaff team member would be dedicated to one client rather than working from project to project.
Type-of-Contract Business Engagement Models
The company providing the services pays for salaries, taxes, compensation, insurance, software licenses and equipment. Nowadays, the global outsourcing market has grown to $92.5 billion and continues to grow. IT services are one of the most popular to outstaffing model outsource, along with accounting and digital marketing. Running a background check is the first thing you should do to hire a dependable service partner. Clutch is a great platform for checking out legit reviews about outstaff companies globally.
The Yourshoring model allows you to hire an extended development team built entirely around your needs. In other words, we help you create a high performing remote development team that is entirely tailored to your product requirements and vision, not ours. Another advantage of outsourcing is that the vendor usually has a bench of specialists that can float in and out of the project on an as-needed basis. This is harder to do with outstaffing, in which developers are usually full-time or fully dedicated to the client. Some organizations have a budget that limits the number of locally-based developers and resources they can have to meet their goals. So folks turn to outstaffing (which as mentioned earlier is cheaper, faster and often better) when they need to bulk up their development team but can’t fight the budget battle internally.
Outsourcing Example:
After the whole world switched to the remote work mode due to the pandemic, the development of software products became a necessity for many businesses. Luckily, now companies don’t always need to spend money and resources on hiring in-house development teams, but can turn to the outsourcing agencies. The success of the development process greatly depends on the right choice of the IT engagement model that should be based on your internal technical expertise and business goals. In an outstaffing model, the hired developers join the client’s team and work under the client’s supervision with the resources provided by clients. It means that the outstaffing vendor is responsible for providing a qualified specialist to the client, paying their salary, and doing all HR management.