Outsourcing vs Outstaffing: Difference, Pros & Cons

Описание: Find out which work model works for you:

https://procoders.tech/blog/outstaffi...

Outstaff or Outsource — that is the question.

If you’re about to hire consulting developers outside your borders, you’ve got to decide how you want this new programming talent to interact with your existing team. Let the offshoring experts at ProCoders show you the work models available to you—and how you can make them work for your next project.

What is an IT Outstaffing Model?
Outstaffing is a type of remote employment where a company is responsible for all, or nearly all, of an outstaffed employee’s time. So, rather than working project to project, an outstaff team member would be dedicated to one client.
In this way, it allows a client to “employ” a dedicated IT outstaff team member, while the IT outstaffing services provider acts as the official employer that pays benefits, bonuses, equipment, holiday pay and employer taxes.
Why Businesses Prefer Outsourcing and Outstaffing.
There are many reasons for the growth of the trend, namely, the expense of hiring permanent IT staff, and a shortage of qualified workers.
Why do companies look for IT talent outside their own organizations? Cost, primarily. Using an outside vendor saves not only benefits and overhead on employees, but base salaries for IT workers in lower cost countries like Ukraine can be as much as 50 percent less than what you’d pay for similar talent in the United States and Europe.
Difference Between Outsourcing and Outstaffing.
It can be hard for a company to try to weigh their options for IT projects. Outsourcing vs outstaffing – which should you choose?
At ProCoders, we usually ask our clients to think hard about the kind of outstaff projects that are needed. Will you truly have enough work to keep one or more people occupied full time, year-round?
Pros and Cons of Outsourcing.
Outsourcing Pros.
Code quality is the vendor’s responsibility. Vendors should be responsible for quality assurance and making sure coding provided fits your project parameters. There are no daily management outputs necessary from you, at a client level. And that’s a big plus.
Day to day management is not needed. Vendors provide you with turnkey service. They manage schedules, quality assurance, deliverables and communication.
Your vendor handles HR. Need more people? Or less? They handle scheduling and recruitment, as well as employee taxes, payroll, benefits and so much more. Get only the help you need, when you need it.
Outsourcing Cons.
Control is with the vendor. If you are a client who likes to have a hand in the day to day activities of coding, planning, and scheduling, then outsourcing may not be for you.
Outsourcing is more expensive than outstaffing. All that management and turnkey service comes at a price. In an outsourcing agreement, you must pay by the hour for the help not only of the IT outstaffed workers but the project management team assigned to coordinate your account. Many vendors may charge you a higher hourly rate for a simple project but may lower their rate when they know you are staying around for greater projects in the future.
Outstaffing Pros.
Flexible hiring model. Outstaffing is the next best thing to having your own auxiliary staff. Staff resources are dedicated to you and your IT needs, while the vendor handles payroll.
You have daily control over the development process. The decision to outsource vs outstaff often comes down to this. If you need more staff, but can’t afford to hire them into your organization, outstaff development is the next best thing. You’ll be able to work with your vendor resources as if they are your own team, giving them daily interaction and instruction, and hardwiring them into your development process with your own employees.
Full Access. When people wonder what is outstaffing, and why you’d choose to work this way, the answer lies in having more day-to-day, hands-on management. In this outstaffing model, you work as the project manager. You coordinate resources. You handle quality assurance.
Outstaffing cons.
Failure to provide good communication channels. With vendor staff often working remotely, or at least separately, from the rest of your team, communication channels are important. As the client, you’ll have to ensure your outstaff team is fully part of your project management software system, and their reporting is transparent to the rest of your corporate team.
Project responsibility lies with the client. Depending on the time you have to manage your IT outstaffing services, this can be a pro, or a con. It’s up to you to decide—what’s easier to invest, your budget or your time?
Software Outsourcing and Outstaffing with ProCoders.
If you’re on the fence about your ability outsource vs outstaff, ProCoders can help you choose the IT outsourcing services.