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6 Nov 2020

Outstaffing Vs Outsourcing


Recruiting Vs Outstaffing: What Is Better For A Startup?

While still technically outsourcing, outstaffing gives the client more control over the product by allowing them to manage remote workers directly. Within the tech industry, the outstaffing model is commonly used by SAAS companies, tech startups, middle-sized businesses, and global corporations. There are multiple models of outsourcing available to suit the needs of companies where talent is out of reach–financially or geographically. Some models are built for short-term, quick-fix projects, others for long-term work on mission-critical development assignments. The best engineers typically want the latter and will look for companies that give them long term opportunities with cutting edge technologies and businesses. Companies looking for high-performing software engineers can find the right agency by asking these questions. What kind of support does the agency provide–to engineers and clients?

On the other hand, outstaffing companies from Eastern Europe are often appreciated for their favorable “price-quality” ratio. They charge noticeably less than dedicated development teams from the US or Western Europe but can easily create products of the same quality than their western colleagues. Outstaffing is a type of remote employment when you hire a specific professional from the chosen agency to work on your project. The outstaffing company isn’t responsible for completing your project – it just provides you with an employee who will become a remote member of your team and will adjust to your internal processes. You’ll enjoy a faster time to market and a smoother development flow while maximizing your project ROI. Outstaffing your app development involves hiring an outside team of developers that delivers the cost benefits of outsourcing while giving you a high degree of control over the development process.

What Is The Role Distribution In The It Outstaffing Model?


It allows getting the job done, in case it’s a standalone custom software project. It’s a perfect option if your company is not mainly focused on technologies and you have no in-house project managers to control the work of a remote team. Unlike the outstaffing model, IT outsourcing generally means that you hire an outside provider to handle the complete development process from start to finish.

Phase 1 Setup Meeting: Discussion Of Client Needs

Software development outstaffing is an entirely different approach to creating software products. This model implies taking control of the action instead of delegating the project management to a service provider.

Cultural barriers can come in the form of different ways of approaching a problem or a process, as well as the difference in work ethics. Language barriers can hinder progress and cause delays in the project. Nearshore services ensure that the experts and development teals that the company hires are geographically closer, and would have close to or similar language and culture. In the last few years, more projects are delegated to software development companies from Eastern Europe. Customers from the US appreciate great skills of developers and low costs, while customers from the EU also find very convenient that the outsourcing company is located in an adjacent time zone. Outsourcing is a perfect option or short-term projects in software development.

Unlike outsourcing, this model requires the physical presence of the outstaffing company and the personnel/specialists carries out a minimum of 80% of its tasks from the outstaffing company’s premises. The team you choose will be an extension of your in-house staff, only working remotely and officially employed by the outstaffing company.

What Is It Outstaffing?

The best engineers want coaching, mentoring, and support in their roles. They also want to be accountable and integrated into the hiring team’s organization. The outstaffing company should offer structured support programs for its engineers as well as dedicated engineering management to ensure that the client has the support it needs.

Have A Project?

If your company is not technically oriented and there are no in-house experts who could lead the development team, outsourcing is more suitable for you. In case you have your own staff but need to work with remote specialists and build processes, then you can turn to outstaffing.


This is a blurry line for some, and yet the differences are quite notable. For one, when using dedicated teams versus a separate third party you are in a supervisory position. You are, in other words, not just handing control of a special project over; rather, an in-house manager is in direct contact with the remote team and in full or nearly full control. Lessening the potential for miscommunication, outstaffing assures more of an “on the same page” approach to project development.

How Can Outstaffing Mobile App Development Relieve Your Headache?

  • As a result, the differences between outstaffing vs outsourcing companies can be significant and completely fit or contradict your original needs.
  • To make the right choice between the outstaffing agency or outstaffing company in Ukraine, you need to clearly assess your preferences and the number of outstaffing services that you need.
  • If you need highly specialized assistance, it is much easier to contact an agency that provides you with remote web development.

Outsourcing comes as a cost-effective solution as hiring an in-house development team takes specific workspace, providing resources and salaries. Also, it lets you focus on your core business operations instead of worrying about software development. So, a point to consider on outstaffing vs. outsourcing. What really is the difference between outstaffing and outsourcing?

Difference Between Outstaffing And Outsourcing

One of the reasons this happened is because more and more companies switch from classic outsourcing to outstaffing instead. Software outsourcing is the process of hiring a software development team or individual to develop software for the end client. It implies complete responsibility for delivering the end product on the developer’s side. You, as a client, are only responsible for providing clear instructions and technical specification for the final product to the developer and following the agreed upon payment terms. This model requires that you define the full specifications of your project at the beginning. Still, with extra services such as project management, business analysis, and quality assurance, you can have some unpredictable expenses. And then, the outstaffing model came to the scene as a new method of hiring remote talent.

Outsourcing And Outstaffing: What Is The Difference And What To Choose In Your Case?

The outstaffing business model will let you avoid miscommunication issues that might arise when third parties are involved, and you will be in charge of the whole process. This is another significant feature of outstaffing since you can’t achieve the same when using outsourcing services.

Now, what’s the difference between in-house recruitment and outstaffing? In-house recruitment means hiring, recruiting, onboarding employees using the company’s resources. While there are general, all-purpose outstaffing agencies, there are also those dedicated to specific industries like software development. Management of the development team is 100% under your control. This means you have to posses corresponding skills and qualifications to manage a development team and software development process or hire somebody who will do it. If you cannot afford it, then outstaffing is perhaps not the best choice for you. In recent years, there have appeared numerous IT outstaffing agencies which provide dedicated development teams to clients around the world.

Thus, the transfer of non-core and highly specialized activities of the customer is one of the indisputable advantages of the cooperating with outstaffing company. Moreover, by choosing PEO as your partner, you don’t have to worry about employees’ retention. If you are wondering what PEO is, the PEO definition implies a professional employer organization that provides human resources management services, payroll processing, benefits and insurance, etc. Here at KeenEthics, we respect the opinion of our outstaffing and outsourcing partners. If you would like to trust us with your project, we will make sure that the development process is smooth and transparent. If you need us to augment your in-house team, we will provide you with the most dedicated developers.

The cost benefits are still there as the outsourcing company you hire will take care of employee payroll and benefits. However, unlike with an IT outstaffing company, you’ll also have to account for higher costs associated with the project management and oversight components. You can decide based on the needs of your business and the required technical component, and it doesn’t matter whether you have a mature business or a startup.