These individuals are also already a part of an outstaffing vendor so they will take care of operational work for you. RisksThe qualification of the specialists might be lower than described by an agency. And some outstaffing companies do not return the money . The other reason outstaff team is on the rise is that some regions are experiencing a tech talent gap.

outstaffing meaning

We enable you to scale in a flexible manner through 1 month cancellation of your contract and scaling of your teams up or down at any stage of your project development. I’m assuming that you want to know whether “outstaffing” is in an English dictionary somewhere, or whether it’s used in Anglophone countries. If some people use a word that’s not in a dictionary, and other people understand what that word means, then it’s a “real word” but just a localism or a regionalism or slang. Even if it’s used only in post-USSR countries, it’s a real word if it’s used and understood in business there.

Like in the case of outsourcing, you might start faster if you turn to outstaffers, as software companies often have engineers available right away. Your vendor does it, along with hiring and maintaining the activities of your IT experts. Assessing consistency, quality, and pace of your development project might not be easy, as you don’t have direct access to your team. It’s something like HR agency meets Outsourcing company. It’s a customer who defines a need skillset of a worker and manages existing ones, but it’s an « Outstaffing » company who actually employs this worker.

Phase 3. Recruitment: Search, Pre-screening, feedback

Ukraine is considered to be one of the best money-saving directions for hiring external contractors. A company with a portfolio of cases should also enlist at least a couple of reviews on its website. It allows establishing more trusted relationships with potential clients. Top companies always have some sort of trophies to boast. This could be an Upwork, Fiverr, or ProductHunt recognition.

This is an important factor because it is one of the main reasons why people decide to outstaff or outsource their work. Companies are forced to make that choice every time they need to build a project or implement a new feature. The communication between management and remote employees may be problematic. The software outstaffing of developmentcompanies helps to find professional programmers, employ, and administer them. As a rule, providers take 5-20% fee, and you do not need to hire a recruiter, HR and think about training your employees.

outstaffing meaning

Outstaffing allows you to have full and direct control over the whole process of completing the task. If one of your developers suddenly fades out, or you have an emergency, hiring an outstaffed contractor helps you to keep your project running without substantive harm to the final product. When you’re hiring an outsourcing agency, you can sleep easy and be sure that there won’t be any miscommunications amongst the team of executors.

What is outstaffing? What will I get from an outstaffing company?

AdvantagesDisadvantagesThe client doesn’t need to look for remote tech specialists themselves. The vendor staffs the client’s projects with their own tech talent on a subcontractor basis. Consequently, the responsibility for successful and timely delivery is the client’s, not the vendor’s. Software outsourcing and outstaffing are sometimes used interchangeably. Basically, outstaffing is the most straightforward model to understand.

outstaffing meaning

I haven’t heard the word before, but I guesses its meaning right away. Apparently, there is a company in the US that’s named that. Stack Exchange network consists of 182 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. We believe that the key to maintaining good customer service is by offering quality services thusour motto; Quality First.

« Outstaffing » is not a real world, in a sense that it is only used in ex-USSR mostly by IT companies providing software development and outsourcing services. I believe in US and UK people call this business engagement model « secondment ». As one reason for outsourcing/staffing may be to avoid those rights, companies have to be very careful. There are different types of outsourcing services out there, and one of them is outstaffing.

Core Outstaffing Benefits — What Companies Find It Most Useful?

In today’s dynamic world, companies have to be alerted of many risks and economic recessions, to keep the business afloat whenever it happens next. Choosing outsourcers or outstaffers rather than Conventional outstaffing vs smart outstaffing employees can minimize many costs, providing the same volume of work done for less. This recruitment model is perfect for companies who want to hire remote employees on a full-time basis.

How nearshoring service models can benefit businesses –

How nearshoring service models can benefit businesses.

Posted: Fri, 21 May 2021 07:00:00 GMT [source]

At this point, a smooth and quick onboarding process is key to success. An HR manager has to make sure that the newly-hired engineer understands their role, has all the accesses, and can use all the communication channels. Facing new challenges, IT staffing industry deals with the identification of industry needs and searching for the workforce to move the majority of firms forward. Staffing providers should anticipate customer needs, including the number of available professionals or developer teams, and move gradually to fulfill the requirement with matching IT personnel.

Gives you access to the broad talent pool

You can not only hire quality offshore developers pretty fast but also replace them and end up your cooperation when their work is done. According to the National Outsourcing Association survey, cost savings (35%) and improving customers’ experience (23%) are the top reasons why companies choose to outsource. John Norwood is best known as a technology journalist, currently at Ziddu where he focuses on tech startups, companies, and products.

outstaffing meaning

However, it’s not uncommon for companies to hire project managers together with the remote team through an outstaffing vendor. The lines between a temp, a contractor, and a consultant can become quite blurry, depending on the specific employment situation, and relate as much to social status as to employment status. As you search for in-house employees, there are a few places to search often only within your country. With outstaffing you can hire from all over the world, prioritizing expertise over the location.

Outsourcing allows businesses to scale up as needed without having to hire additional employees or make major investments in equipment or building space. To ensure you can talk to your team during reasonable work hours, your team should be no farther away than seven to eight hours. At ProCoders, we take that extra step, often starting our official workday for that client at 12 p.m., ensuring more hours are available for our team to work directly with a client’s staff. In the case of ProCoders, we don’t hide our clients, and you can look at some of the projects we have already done. It can be higher if you want to collaborate with a company with lots of good feedback and a high reputation.

Normally you will be presented with demos of what has been done during a certain timeframe. Finding creative and experienced gems is not an easy task as the true geniuses have already been taken by large corporations and the newbies need a long time to be trained. With an IT outstaffing company, you get the professionals of the IT sphere to your project right away. Less responsibility and management headache results in higher cost, as the outsourcing company usually hires a manager for your project. Let’s briefly sum up the comparison of outsourcing and outstaffing models. R&D centers and remote agencies often have engineers that are between projects and can start working immediately.

What’s behind Outsourcing?

Apart from software development, a company can turn to outsource to help with their manufacturing, accounting, software development, testing, support or call center, and other digital activities. Finally, they decide to hire an offshore software development agency and get confused with a bunch of terms like software outsourcing, outstaffing, dedicated team, and others. It came to the scene as a new form of hiring remote workers when the old good outsourcing started showing flaws. IT outstaffing is a kind of remote employment when a hired person carries all the duties and responsibilities for a company while being officially hired by another company.

In the end, each business practice has its advantages and disadvantages, so there’s no universal answer to the “outsourcing or outstaffing” question. Outsourcing is the process of delegating business processes to an external provider or a third party. In IT, outsourcing uses third-party service providers to build from scratch.

  • With an outstaffing agency, you can find the best candidates for your business without having to worry about the hassle of managing a remote team.
  • In the majority of cases, the vendor will staff the team with their existing engineers.
  • Then they think of how much they’ll have to spend on quality in-house developers, which is probably not the best choice.
  • There are many options to consider in the outsourcing vs outstaffing debate.
  • The outstaffing model requires a clearly defined task and provides for a person who will perform it properly.
  • All the payroll, paperwork, and bureaucracy issues will be handled by the vendor.

By practicingthe PDS approach, the vendor company can achieve a strategic partnership with a client. I enjoyed working in several companies, including startups, small private IT development Shops, and large enterprises with tens of thousands of people on board. Then they think of how much they’ll have to spend on quality in-house developers, which is probably not the best choice. Decide on whom you want to hire to develop your project and choose among several candidates offered to complete a dream team.


On the other hand, large and public companies tend to position themselves as in IT outsourcing, but only in the Product Development Services and Managed services areas. As time goes on even small companies reject « outsourcing » positioning using « custom software development » instead. Staying in ‘commodity’ keeps prices limited by the market. That’s pretty much what is happening in the Ukrainian IT labor market. Having Product and Project Management on the provider side also means having Ownership and Responsibly on software end product delivery so that the quality ownership is entirely on the vendor side.

You have tons of experience, but it requires time to get the needed people in place for every project that needs them. Many people believe that there is no distinction between offshore outstaffing and outsourcing development models. However, the chosen model may significantly impact your project. The main difference is that, with software outsourcing, the team and project management happens on the vendor side, whereas outstaffing requires the client to manage developers on their own. Many companies choose the remote software development teams due to their price of service and the quality of end product delivery.

Scaling or reducing the number of employees can be done with minimal downtime since all communication is handled by the vendor. Time to hire Usually, from several days to 2 weeks.Up to several months.Several weeks.From several days to several weeks. If a project fails, the company will no longer need an in-house department. I haven’t heard the word before, but I guesses its meaning right away. Is it easy to loop outsiders into your project management software systems? If the answer to all these questions is no, you should seriously consider outsourcing instead of outstaffing.