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 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.
Less staff-related costs. Mainly this business model is a cost-effective way because you have the opportunity to choose competitive programmers from developing countries, and they have been programming as reliable as engineers in your country, but less expensive. It also means that the remaining amount of resources will be focused on the main activity of company.
There are no delays. The contractors have many competitors, and they try to do everything on schedule. In addition to achieve concrete results in the shortest possible time the outsourcing strategy making life easier for business employers.
Vendors assume all responsibility. Website development, design, software support and maintenance are all parts of the services of many IT-companies in such case. So your duties are only specific assessments and drafting tasks.
Project manager. If you don’t have technical education, you just need to say what you want to get. Then project manager assign the tasks to engineers. Also, you do not worry about whether they deal with the project or not because PM knows about the abilities of each into the company.
Fixed price. Such a type of contracts is typically used by outsource teams to reduce the risks connected with sallary. And this is the best way for the customer to pay less for the project, and for the programmer to make the work faster.
Distribution of tasks. If your company has a lot of juniors, you are possible for allocate tasks depending on the strengths of each employee.
Management. The service company decides which of the engineers will carry out the project. And also vendors choose how long it takes to give time to one or another piece of the work.
Concentrate on the main. Finally, the most pleasant part of outsource for engineers is they are just focus on the development and project manager solves problems involved in customers and the team.
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?
Quality. Outstaffing provides for the hiring of more qualified people such as middle or senior full-stack developers. Sure, the payment of their labor is higher. But as a result, you have a product with minimum bugs. Also, the code of this one is clear, i.e. it can be supported by other professionals.
No bureaucracy. Technical staff communicate with developers directly when outstaffing model is used. Thus, the company get rid of misunderstanding between two sides of business relations.
Control. The client is responsible for the whole process of management. This decision should be applied to make sure that everything is done right and each of employees do their job correctly.
Huge ROI. Return on Investment and guaranteed result is a primary goal for most enterprises. Definitely developers who have a long experience in programming know how to make your business more gainful.
Retention of qualified engineers. Keep high-level programmers at their workplaces without damage to the company. If some of your employees don’t have projects at this time, they’ll work for another company. At the same time, the contractor will be receiving payment for the developers rent.
Hourly rate. Some business doesn’t require global changes and if so, it is more profitable for clients to hire a person hourly. On the plus side, such job is high-paying. Therefore, the service company of the outstaffing model earn more than with outsourcing.
No deadlines. Mature business has more stable progress and the programmers are able to carry out tasks for the time that is considered to be acceptable. So, if they avoid stress, they are productive during their working hours.
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.
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!