IT Outsourcing vs Outstaffing: Which Side of the Force do You Choose?

Inna November 06, 2017

Mostly, big companies have their own staff of employees who are engaged in product development. But what do small and medium-sized businesses do? In a such case customer-based companies use outstaffing and outsourcing services to reduce the financial burden for their business. Well, considering the proximity of these concepts, it is important to understand what kind the range of services is needed for your company. Actually you should consider both ways the provision of employment because each of them has a lot of advantages. You need to find out which of these two practices would be better to implement.

Outsourcing

Outsourcing is a business method of hiring developers outside the company to carry out the tasks that have nothing to do with the main activity of the enterprise. Usually the vendors of outsourcing are programmers who write code for future web pages and apps. It can be software companies or freelancers. Depending on the countries where both sides located, there are local, nearshore and offshore outsourcing. You are able to choose each of these types in accordance with your budget and desired outcome. The practice of outsourcing has been becoming increasingly popular and there are next reasons for this.

Benefits of Outsourcing for Customers

Benefits for Vendors of Outsourcing

Outstaffing

Definitely, outsourcing is a good occasion to free up in-house resources and do  project quickly for a reasonable amount of money. But this method looks weird for mature phase of the business cycle. Because owners usually have their own team and want to obtain additional resources at this crucial juncture. What can help in this case? Exactly.

Outstaffing is a little different business model. In this practice you employ one or a few engineers in your organization, and they become a full part of customer team, but developers still have their employment with the vendor company. Well, what profits do both customer and service companies get?

Benefits for Outstaffing Customers

Benefits for Outstaffing Vendors

Outsourcing + Outstaffing

Of course, some enterprises can use this two models separately, but they are far more effective if used in combination together to enhance your efforts. Surely, you need to be more flexible for this and you must endeavor to focus on management of your staff. But it's not a secret that different people have different abilities and opportunities. And a good employer should evaluate the work of each of them. Only in this way, you will get the maximum benefit from providing services to others.

Conclusions

World has moved on and the IT industry has been rapid growth. In fact, you should have been able to grasp what each of client’s needs and what you must do to have a strategy that makes your company successful. Both outsourcing and outstaffing can be implemented in response to needs and company’s goals.

 You should to make up your mind what are you expecting and choose the right way to grow your company. Even though there's just so much competition in these days. You are the one who’s responsible for choosing the best option. So may the Force be with you!