The third-party company provides the client with a team of the most skilled and self-managed experts suitable for their IT project. They will integrate seamlessly into your IT department, master your business process, and invest all their time and resources to ensure your project is successful. Nevertheless, entrepreneurs underestimate the complexity of hiring an outstaff team.
Let’s start by taking a quick peek into the growth of the software development industry which causes an intense demand for IT professionals outstripping the existing supply. The outstaffing means a type of remote employment when a company makes a contract with a third-party team or individual employee to perform work or a number of company functions. Let’s look at the benefits of outstaffing development as well as its drawbacks. So, this practice means that the organization providing a service in this way takes over the work in full. For example, if this is an app, they will complete everything from specifications to maintenance. And by choosing to outsource, you will most likely interact with the manager of the hired team.
Benefits of Software Development Outstaffing
Getting a high-quality outsourcing provider is an underlying factor for success. Effective team collaboration throughout the entire development lifecycle is crucial for successful project completion. But, the existence of a number of perplexing collaboration models makes it difficult for businesses and technology companies to choose the right model. If you choose an outstaffing model, be prepared to take on more responsibility.
However, those issues can be dealt with, and they won’t affect your project even by the slightest bit. Meanwhile, the advantages brought about by such an incentive hard to deny, as it saves cost and ensures the impeccable quality of the product you receive. It seems like outstaff software development is what you need when looking to kill two birds with one stone. Developing new technologies is a costly endeavor, and you have to plan every turn you will take on your journey before you even start.
Now let’s summarize the battle of outstaffing development versus outsourcing one. Outsourcing is a project or function assignment to a third party that has resources to perform the task, such as a qualified team and equipment. This can mean creating a web or mobile application, developing a website, and so on. This approach is an alternative to creating an in-house department.
Instead, a company delegates the project to a foreign company for more cost-effective solutions. Honestly, they will most probably end up in this role no matter if you asked them or not. Clearly, the first point is more suited for outsourcing, due to the fact, that a software development team can better deal with developing from scratch or implementing numerous functional software developement outstaffing components at once. In case you hire Syndicode to help you with outstaffing – we cover all the risks. Personnel provided by Syndicode is always highly skilled and responsible – this is our task to leave you with no reasons to worry about. More often, we can meet IT outsourcing, that is, outsourcing of information technologies and software product maintenance.
Benefits and Pitfalls of Outsourcing
However, the main difference between outsourcing and outstaffing is that outstaffing hires experts from other firms to work on the project under the control of the business owner. On the other hand, outsourcing passes the web development process to a third firm. 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.
While there is no published data yet, I’ve seen very few examples of outsourcers who have built and launched a commercially successful product on behalf of a client as a turnkey service. The best method to avoid this issue is to define all the main development tasks in a single shared document with full descriptions. The document should be prepared in a language everyone on the team understands without ambiguity, and the manager should welcome and invite questions on an ongoing basis. You should also monitor the team member’s performance to verify that each developer performs as expected. Outstaffing provides a great deal of flexibility since you can scale your team up or down seamlessly depending on the needs of the business.
Outstaffing is an offshore development model where the client hires a contractor from a software outsourcing firm to carry out development tasks. The employee works full-time on their project but is paid by the third-party company. The main differences between software outsourcing and outstaffing are the scope of the project and the side responsible for the management of development activities. With outsourcing service, the project development falls on the shoulders of the outsourcing agency. The development team still requires guidance in terms of the client’s business model, their long- and short-term goals, and features prioritization. When clients come to a software outsourcing company, they expect a certain level of expertise and service.
- With outsourcing, team management happens on the side of the offshore web development agency.
- I’ve found that most of the good shops specialize in a vertical and specialize in a language, and they have plenty of work from referrals — so they don’t need to spam anyone.
- Meaning, the client fully delegates the development of the project to a remote team that is fully involved in the development of the project.
- Because we are a full-cycle software outsourcing company, we use industry best-practices for testing and delivery to ensure deliverables are of the required quality.
Hiring outstaffed developers can also be a cost-effective solution compared to hiring individual contractors or freelancers. It helps reduce overheads, save time, and cut costs spent on recruiting, training, and managing teams. Local employees on long-term leave or sabbaticals are another reason software companies consider using outstaffing services to handle their tasks until the employee returns. This ensures that the employee’s absence doesn’t impact the development team’s productivity and efficiency. UVIK is an outstaffing company that’s been providing skilled developers for various projects for over a decade.
The Process of Outstaffing for Software Development
Software development outstaffing offers many advantages, including cost savings, access to a wider pool of talent, flexibility, improved productivity, and risk mitigation. However, there are also challenges such as communication barriers, lack of control, security concerns, and limited face-to-face interactions. Companies must carefully consider factors such as expertise, quality of talent, communication skills, cultural fit, security measures, and cost when selecting an outstaffing service provider.
Instead, these SRE expenditures must continue to be amortized in future years pursuant to the original SRE expenditure amortization schedule, even though the taxpayer has sold the applicable IP. This reduces the burden of controlling all the operational aspects of the project and allows your in-house team members to focus on other projects. Software outsourcing is also a perfect fit for companies that need end-to-end assistance in rebuilding their projects. Being responsible for the management, you are also responsible for the whole planning process. Quite often, those who have never evaluated and planned their work can’t correctly establish a software building process.
Offshore Agency Manages Developers
This article aims to provide a comprehensive guide on software development outstaffing. If you have extra resources to use and want the job done without being involved, then your to-go option is an outsourcing model. You will be involved more in the development of the project since outstaffing companies do not provide clients with a management team. Based on this information, it should be easier to make a decision. Finally, team extension and outsourcing proposals help to significantly decrease the final price of the product development.