The Outstaffing Model: What It Is and Why Its Better Than Outsourcing

Sometimes an in-house team can find it hard to reach deadlines or follow a set timeline to launch a new project. In this case, hiring a remote team to pace up the work is a great solution. The outstaffing model is perfect in these scenarios because it lets you have more people on board to make sure that the launch is done on time. So, the best way to decrease the time to market a product is through outstaffing.

outstaffing model

Once the right tools were identified, a work plan was assembled with an eye to speed and maximizing the budget. Sometimes, when deciding between outsource or outstaff, outsourcing will be the clear winner. Outsourcing will be the right option if you have occasional bursts of IT needs, whether to build a new app or shepherd the company through major software outsourcing and outstaffing transitions. Increasingly, companies are turning to outside vendors both at home and abroad. And when you consider outsourcing or outstaffing, you’re considering improving the technical capacity of your project, adding more third-party expertise, and ensuring that all deadlines will be met. If your team is already under the pump, they will find it hard to meet all deliverables on time, which eventually leads to an interruption in the workflow.

Final Verdict: Turning to Outstaffing or Not Will Depend on Your Needs

An outstaffing model in software development is a progressive response to a business request when it needs to solve narrow technical tasks, quickly expand the team, and address several other issues. With outstaffing being a new niche, businesses often opt for outsourcing, which limits businesses in their ability to control the development process. Outstaffing provides companies with as much control over the team as they require or want to have. It is a better option for those who want to have full control over the project and direct impact on what’s going on inside the team. This is the only one of the IT engagement models similar to an in-house team in terms of reporting. Your new hires report directly to you and are closely integrated with your existing team through mutual messengers, project management tools, and group calls.

So, if you want to get some projects done remotely without losing your influence over them, outstaffing is ideal for you. However, outstaffing might provide more advantages to cost reduction as it lets you take full control of workforce management. You don’t have to spend anything more than you have to on infrastructure, regardless of how many more members you add. Plus, you can decide what salary you want to pay an outstaff employee, depending on your requirements and the person’s skills. It is a type of remote hiring where a third party is hired by a company to take over certain projects for their business.

Outsourcing vs Outstaffing IT Models: What’s the Difference?

They report back to the client any issues that arise, but the vendor is fully answerable for all aspects of the management process. Communication is essential in any team and plays a significant role in over-delivering against the desired development objective. Using offshore resources can sometimes come with cultural differences that may hinder communication. But these shortcomings can be overcome simply by using regular collaboration tools like Zoom and Slack to connect daily with each outstaffed team member. Some organizations have a budget that limits the number of locally-based developers and resources they can have to meet their goals.

outstaffing model

This is why many businesses outsource their work to India at low costs. The business owner chooses to contact a company that specializes in mobile app development. For a cost lower than the in-house team would cost, the contractor develops an application in a short time.

The Key Steps of the IT Outstaffing Process

Whether you need to create your project from scratch or give a boost to your existing product – ProCoders is always here to help. After creating a favorable impression with their initial Discovery phase of Dryft’s app, ProCoders was hired for an additional activation. The ProCoders team worked seamlessly with the UX/UI designers at Dryft to create an app that delivered on the user experience they custom ai solutions were trying to achieve. The arrangement allowed ProCoders staffers to augment the Dryft staff for as long as they were needed. However, they will bill you for these things, and you will be responsible for paying them. It’s an arrangement that can work smoothly, but you must keep your HR department apprised of your outstaffing development plan and ensure the engagement rules are clearly defined.

outstaffing model

A team simply adapts the existing methodology, processes, monitoring tools, and communication approach. Commonly, a customer hosts repositories and automation means, managing them. Markets have always experienced a shortage of qualified IT specialists.

How to Find an Outstaffing or Outsourcing Partner

Teqnovos offers world-class outstaffing solutions to businesses of all sizes. Also, you can hire developers with experience in certain industries to ensure the success of your projects. Get a free consultation from our experts to identify the best human resources for your needs.

  • Along with outstaffing, outsourcing is as an alternative to creating your in-house department or handling tasks to employees working in your organization.
  • Teqnovos offers world-class outstaffing solutions to businesses of all sizes.
  • Moreover, in most cases it proves much more cost efficient and productive than outsourcing.
  • The major difference is that the outsourcing team is more independent while the outstaffing team depends on your management skills.
  • Outsourcing and outstaffing are two of the most widely used IT models nowadays.

Whereas, when you outsource the same tasks, you can set deadlines according to the work and your requirements. This way, your outsourcing agency will get the job done within the specified time, thus speeding up the entire process. By outsourcing projects to an outside agency, you free your team to focus on other important things.

Outstaffing: Advantages & Disadvantages

This gives you space to rely on their experience and ensure they will find a talent gem just for your needs. However, outstaffing also considers sharing the process, which means you are free and flexible to step in at whatever stage of the recruiting process you wish to. People Operations, in turn, concentrates on a specialist’s development, goals, intentions, and loyalty.

The PDS project is usually expected to have a Project Manager, Product Owner, Stream, and group leaders among the team members. In some cases, those roles can interface or mirror the respective roles on the client’s side. Additionally, the company establishes competency centers and practices – the non-production people responsible for acquiring and growing the competency and domain knowledge. Processes, web development guidelines, prebuilt solutions and pipelines, and much more – are the solution accelerators.

How Mobile App Development is Reshaping Retail

If you have decided to outstaff, the only expense you incur is the hourly rate of a specific engineer. However, you may still face other options, like project-based payment. In this article, we will take a closer look at what IT outstaffing is, who can benefit from this model of interaction, and what types of projects it is best suited for. Having Product and Project Management on the provider side also means having Ownership and Responsibly on software end product delivery so that the quality ownership is entirely on the vendor side. The outstaffing concept sounds pretty straightforward and, at the same time, familiar, right? Perhaps you have been using this business practice without knowing it is outstaffing.

As a company looking to complete and deliver projects quickly, you should consider hiring talent through outstaffing. Also, you can assign mundane tasks to remote employees and provide in-house team members with extra time to focus on the core processes of your business. Outstaffing can be a great aid for a company that doesn’t have enough resources to support in-house employees. Flexible and under your control, outstaffed workers will bring benefits to your company.

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.