Outsourcing or Outstaffing Do it Right With 10 Effective Tips

Outsourcing and outstaffing are two of the most popular practices that are widely approved and preferred by businesses. Such models help in fast-tracking the development process and also save a lot of time and money.

Both models allow businesses to utilize the valuable resources and experience of employees working from any part of the world.

Approaches are gaining traction with many companies across industries, and such models are best for specific domains, and the IT industry is one of them.

So keep reading to learn more about outsourcing and outstaffing practices and effective tips for finding the best fit.

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difference between outsourcing and outstaffing

People often assume that outsourcing and outstaffing are the same thing, but this is not the case.

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Software development outsourcing refers to a model where one company hires workers from another company to perform specific tasks.

IT industry can develop an app, a website, software product etc. Often, outsourcing means that the contractor will complete the entire scope of work, not just one or two tasks. For example, if you want to develop a mobile app, they will deal with everything from technical requirements to maintenance and final checks.

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If you choose to outsource, you will be assigned a project manager for your project. They will talk to you and take care of the entire team.

In contrast, outstaffing is a type of model in which a third-party worker or a team does your work. The third party is officially employed by another company but acts for you. In outstaffing, the clients control the entire scope of work, and have direct access to the outsourced team.

When you outsource, you get to manage the hired team and your own team; However, the outstaffing team will handle the payroll.

This approach works best when you already have a development team but lack some of the expertise required for a particular project.

Outsourcing vs. Outstaffing: Finding the Best Fit

There is no one-size-fits-all, and no one can tell you what to choose. Each situation is unique and needs to be considered. To develop the best fit, you must first evaluate the resources available at your disposal.

If there is no software department in your company and you have sufficient funds to complete your project, then outsourcing is the option for you. Conversely, your team doesn’t have enough strength, and you can manage third party team and your team to complete a project, outstaffing is the best option for you.

When deciding between outsourcing and outstaffing, you need to be aware of the general principles on which the models work.

How does outsourcing work?
When you need to collaborate with your outsourcer, a universal algorithm is followed.

Draft and allocate the required budget.
Look for an experienced and competent outsourcer.

They will need a product requirement document that contains all the preferences related to your needs.
You will need to inform the outsourcer about your requirements and project details.
You should have regular meetings with the team working on your project to see if progress has been made and to discuss revisions that may be made.

Lastly, you will have to evaluate the results and provide feedback on the services received.
How does outstaffing work?

When you choose outstaffing, a different set of activities are performed to achieve the desired result.


Just as you hire candidates, you need to conduct a selection drive to find IT specialists who will be a great fit.
Final project requirements have to be clarified to ensure that all employees proceed together.
Presenting necessary software to ensure smooth workflow.

If required, the onboard team is to be trained and then assigned a workload.
Monitor outstaff team performance.

Provide regular feedback on how they are performing and areas that need improvement.
Evaluate the quality of deliverables and suggest necessary changes.

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