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Outsource vs Outstaff

Updated: Oct 5, 2022

When it comes to the attraction of competent specialists to your project, the sharpest question is – what model of cooperation to choose? It is possible to practice outsourcing or outstaffing. Both variants are very popular in the IT sector. But which one will be best-matching for your company? It depends on many factors to take into consideration.

Most businesses decide on two available options – to hire an external team or order a full-cycle performance of the project (for example, software development, recruitment, arranging of any event, etc.). Speaking about the IT industry, it is necessary to consider specific aspects for the best choice in the context of the dilemma of “outsource vs outstaff”.

What Is Outsourcing?

Outsourcing is about entrusting your project to the dedicated team from A to Z. This is the full-cycle development of software if we speak about information technologies. Usually, the project manager coordinates the whole team of developers to provide the client with the desired result. Among the main benefits of outsourcing are:

  • A service provider is 100% responsible for the final result;

  • A full-cycle development is performed;

  • A project manager coordinates all the team members and reports to the client about the progress;

  • The hiring process is not a customer’s headache.

Speaking about weak spots of outsourcing, they are about complicated control over the process from the client’s side. All the responsibilities are performed by the project manager. Additionally, outsourcing is about hiring rates rather than outstaffing costs on the market.

What Is Outstaffing?

This model is optimal for ones who would like to attract individual specialists to cover these and those responsibilities. You are able to hire great developers at lower prices for some specific tasks. But at the same time, you have a risk to face incompetent task performers and challenging communication between all the team members (your staff and outstaffed workers).

If you are sure that you hire a professional with high-level communication background and experience in perfect teamwork, outstaffing might turn into a budget-friendly experience that will be efficient for your development progress. But still, many businessmen consider outstaffing riskier than outsourcing.

To sum up, it depends on you what model of cooperation to choose. Hire personnel responsibly and pay attention to the peculiarities of outsourcing and outstaffing presented above. Outstaff skillful individuals to speed up your work or outsource a team of developers for full-cycle performance.


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